A Compelling Case. A Clear Vision.

August 2006

Unconventional Natural Gas

SPI

SPI

DISCLOSURE STATEMENT

The corporate information contained in this presentation contains forward-looking forecast information. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonably accurate by Canadian Spirit Resources Inc. (CSRI) at the time of preparation, may prove to be incorrect. The actual results achieved during the forecast period will vary from the information provided herein and the variations may be material. Consequently, there is no representation by CSRI that actual results achieved during the forecast period will be the same in whole or in part as those forecast.

SPI

Overview

Unconventional natural gas: One of the fastest-growing sectors of North America's energy industry

Canadian Spirit Resources: Focused on developing 1.0 tcf of unconventional natural gas from coal (NGC)

A huge resource play: Farrell Creek, northeast British Columbia, 40,000 + acres, 94% (average) owned by CSRI, 80% of land includes deep rights, $30 million invested to date

SPI

Current Status

Seven test holes drilled and cased

Two holes fracture-stimulated in the Gething Formation

Both holes producing natural gas and water

Dedicated a test hole to evaluate gas-bearing shales

SPI

Resource Potential: Farrell Creek

Sproule Associates Limited Preliminary ReportApril 17, 2006:

Contingent gas-in-place resource potential

Gething coals 12 – 16 bcf per section

Gething shales 11 – 17 bcf per section

Gates & Moosebar shales7 – 8 bcf per section

SPI

Next Steps

Measure production rates

Develop pilot plan to drill and complete more test holes

Focus on engineering, operational and marketing aspects of developing a commercial project

SPI

Fast Facts

Shares outstanding 28.8 million

Recent share price $2.25

Market cap $65 + million

Land 62 + sections (42,000 gross acres)

Contingent resource *

Gething coals 12 – 16 bcf/section

Gething shales 11 – 17 bcf/section

Total contingent resource* 1.4 – 2.0 tcf

Estimated recovery rate 60%

Market cap / recoverable mcf $0.06 per mcf

Largest shareholder Sprott Asset Management (18.8%)

* (Sproule Associates, Apr 17/06, Gething Formation only, Farrell Creek, B.C.)

(As at June 5, 2006) ($ Cdn)

SPI

Natural Gas from Coal (NGC)

U.S. 10 years ahead of Canada

Industry in Western Canada growing rapidly

Production of unconventional gas similar to production of conventional gas

Typically, to economically produce natural gas from coal, formation water must be removed first

SPI

A Compelling Case

NGC compared to conventional gas

Coal can store up to 6 or 7 times more gas

NGC well can have 3 times the life

NGC recovery factors can be as high as 80%

SPI

A Clear Vision

CSRI focused on unconventional gas, including NGC

2002 regional NGC assessment of WCSB

Five-year plan: explore for and develop 1.0 tcf of NGC within five years in an environmentally safe and responsible manner

SPI

A Clear Vision (cont’d)

Within four years:

Identified several large resource plays

Assembled high working interest land position in northeast B.C.

Began evaluating productive capability of principal resource property

SPI

Coalbed Gas Potential in B.C.

CSRI area of interest

SPI

Farrell Creek, NE B.C.

CSRI Test Area

SPI

Farrell Creek Geology

SPI

Resource Overview

Gething Formation

Multiple thin coal seams

As many as 30 individual seams

Net coal thickness: 25 – 50 feet

Gas content: 230 – 550 scf/ton

Contingent resource

Coals 12 – 16 bcf/section

Shales 11 – 17 bcf/section

SPI

Resource Overview

Moosebar/Gates (Shale Formation)

Gas content 2.5 – 11 scf/ton

Thickness 900 feet

Cored 600+ feet

Additional prospects identified

Bluesky, Cadomin, Halfway, Baldonnel, Doig/Montney

Contingent resource

Shales 7 – 8 bcf/section

SPI

Farrell Creek Potential

Land 62 + sections

Well spacing 4 – 8 wells per section

Risked well locations 200 – 400

Productivity per well 250 – 300 mcf/d

Potential production 50 – 120 mmcf/d

SPI

Farrell Creek 2006 Plan of Activities

License 2 – 4 additional locations for summer drilling program

Prepare and submit Feasibility Plan for provincial government approval

Raise funds for pilot phase of production

Drill, complete and test up to 4 additional wells

Initiate application to tie-in to Duke Energy pipeline

SPI

First Half (approved) $3.6

Second Half (estimated) 9.0

$12.6

G & A expense $1.4

Net cash resources (Jan 1/06) $8.0

2006 Capital Program

($ million Cdn)

SPI

Risks

Farrell Creek productivity

Equipment and service costs

Commodity prices

SPI

Strategic Advantages

Resource knowledge and expertise of technical team

Energy development experience of management and directors

High working interest land position with multiple prospective targets

SPI

In Summary

Material land base of 62 + sections

1.4 – 2.0 tcf (coals and shales, Gething only)

Value/Market upside

Additional potential (shallow and deep)

Favorable commodity pricing

200 mmcf/d capacity in nearby Duke Energy pipeline

A Compelling Case. A Clear Vision.

A company with its eye on the prize:

1.0 tcf of NGC

SPI

Canadian Spirit Resources Inc.

Suite 1950, Ford Tower

633 6th Avenue S.W.

Calgary, Alberta T2P 2Y5

Telephone (403) 539-5005

E-mail: info@csri.ca

TSX Venture: SPI

w w w . c s r i . c a