Dawson West

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The Company holds 35 sections of land in the Dawson Area of British Columbia, with average working interests varying between 20% to 40%. Within this land position, Cinch specifically owns the Montney rights in 25 sections of land averaging a 33% working interest. The Company believes that these lands are favorably located for Montney gas potential as they lie between the ARC-operated Dawson Pool to the southeast and the Storm Exploration-operated pool to the northwest. In 2008, Cinch is participating in a 3D seismic program on these lands designed to assist in the determination of the best possible locations to pursue with a horizontal drilling program estimated to commence in the summer of 2008. If successful, this could have a significant impact on Cinch’s reserve and production base in the future.

In 2007, the Company participated in two gross (0.7 net) wells. Both were cased for Kiskatinaw gas potential. The Dawson 01-32 well is expected to go on stream in April 2008 at a restricted rate of about 6 mmcf/d while the Dawson 12-28 remains to be fully evaluated.  At least three more wells are scheduled for this area in 2008 including a horizontal well to test the Montney formation which has become a significant producer in competitor wells nearby.

Cinch holds 19,435 gross undeveloped acres (6,803 net undeveloped acres) in the Dawson Area, of British Columbia.  In January, 2008, a well was spudded, which will earn Cinch an interest in 3 sections of land on a farm-in opportunity.

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Cinch Energy Corp. Suite 2000, 840- 7th Avenue SW Calgary, Alberta T2P 3G2