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.

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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

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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

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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

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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

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Fast Facts

Shares outstanding 28.8 millionRecent share price $2.25Market cap $65 + millionLand 62 + sections (42,000 gross

acres)Contingent resource *

Gething coals 12 – 16 bcf/sectionGething shales 11 – 17 bcf/section

Total contingent resource* 1.4 – 2.0 tcfEstimated recovery rate 60%Market cap / recoverable mcf $0.06 per mcfLargest shareholder Sprott Asset Management

(18.8%)* (Sproule Associates, Apr 17/06, Gething Formation only, Farrell Creek, B.C.)

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

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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

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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%

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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

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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

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Coalbed Gas Potential in B.C.

CSRI area of interest

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Farrell Creek, NE B.C.

CSRI Test Area

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Farrell Creek Geology

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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

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Resource Overview

Moosebar/Gates (Shale Formation)

Gas content 2.5 – 11 scf/ton Thickness 900 feet Cored 600+ feetAdditional prospects identified Bluesky, Cadomin, Halfway,

Baldonnel, Doig/MontneyContingent resource Shales 7 – 8 bcf/section

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Farrell Creek Potential

Land 62 + sectionsWell spacing 4 – 8 wells per

sectionRisked well locations 200 – 400 Productivity per well 250 – 300 mcf/dPotential production 50 – 120 mmcf/d

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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

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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)

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Risks

Farrell Creek productivity Equipment and service

costs Commodity prices

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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

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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 Tower633 6th Avenue S.W.Calgary, Alberta T2P 2Y5Telephone (403) 539-5005E-mail: info@csri.caTSX Venture: SPI

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