On behalf of our Board of Directors:

Bob Hodgins, Carol Bell, John Bentley, Peter Dey, Ron Royal, Brooke Wade

On Sunday June 9, 2013 President Deby inaugurated our production facilities at the Badila field. Our production system at Badila has been loaded with oil from Badila-­‐1 and Badila-­‐2, and President Deby opened the valve to produce the first oil through the system as shown in the pictures above.

This was a great accomplishment, significant milestone and proud moment for the Republic of Chad, and our team.

I want  to pass on congratulations and gratitude for a job well done reaching this milestone. Every single person on our team made a contribution over the last two years in reaching this milestone. We are working with the Government of Chad and the operators of the export transportation system, TOTCO-­‐COTCO, putting the final paperwork in place to begin exporting oil from Badila in the coming days.

Congratulations, and thanks to each and every one of you.

Gary (CARACAL Energy)