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Apri l 8, 2011

Old Harry: Responsible Exploration and

Potential Economic Benefits

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DisclaimerForward Looking Statements

This presentation contains certain forward-looking statements and forward-looking information (collectively referred to hereinas "forward-looking statements"). All statements other than statements of historical fact are forward-looking statements.

Forward-looking information typically contains statements with words such as "anticipate", "believe", "plan", "continuous","estimate", "expect", "may", "will", "project", "should", or similar words suggesting future outcomes. In particular, this

presentation contains forward-looking statements pertaining to the following: characteristics and potential of Old Harry; nextsteps to be undertaken by Corridor, including holding public consultations, preparing and filing with C-NLOPB anenvironmental assessment, timing of the assessment; regulatory approval of the exploration program; and the proposed

exploration program at Old Harry, including well location, well design, type of drilling rigs to be used, logistical support, timingof drilling, practices to be followed, and potential issues associated with the program and potential mitigation of such issues.

Forward-looking statements are based on Corridor's current beliefs as well as assumptions made by, and information currentlyavailable to, Corridor concerning business prospects, strategies, regulatory developments, future natural gas and oilcommodity prices, exchange rates, the ability to obtain equipment in a timely manner to carry out development activities, the

impact of increasing competition, the ability to obtain financing on acceptable terms. Although management considers theseassumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Undue reliance

should not be placed on forward-looking statements, which are inherently uncertain, are based on estimates and assumptions,and are subject to known and unknown risks and uncertainties (both general and specific) that contribute to the possibility thatthe future events or circumstances contemplated by the forward-looking statements will not occur. There can be no assurance

that the plans, intentions or expectations upon which forward-looking statements are based will in fact be realized. Actualresults will differ, and the difference may be material and adverse to Corridor and its shareholders. These factors include, but

are not limited to risks associated with oil and gas exploration, financial risks, substantial capital requirements, bank financing,government regulation, environmental, prices, risks may not be insurable and reserves estimates. Further informationregarding these factors and additional factors may be found under the heading "Risk Factors" in Corridor's Annual Information

Form for the year ended December 31, 2010and its most recent management's discussion and analysis, copies of which isavailable at www.sedar.com. The forward-looking statements contained in this presentation are made as of the date hereof

and Corridor does not undertake any obligation to update publicly or to revise any of the included forward-looking statements,except as required by applicable law. The forward-looking statements contained herein are expressly qualified by thiscautionary statement.

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Presentation Outline

Overview of Corridor Resources. History of oil and gas exploration in the Gulf of St. Lawrence. Hydrocarbon potential of the Old Harry reservoir. Summary of Geohazard Survey results. Overview of Corridors proposed exploration well within EL1105 in the

Newfoundland and Labrador offshore area.

Potential for economic benefits from the oil and gas industry. Summary and conclusions.

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Overview of Corridor Resources

Eastern Canadian energy company. Main Project Areas:

Natural gas production, NewBrunswick;

Petroleum exploration, NewBrunswick;

Old Harry exploration, Gulf ofSt. Lawrence;

Oil exploration, Anticosti Island,Quebec; and

Natural gas potential, PrinceEdward Island.

Strong management and technicalteam with onshore and offshoreexperience.

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Corridor s Quality, Health, Safety and

Environmental Mandate

Mandate:

To protect people, environmentand property by

implementing an effectiveManagement System thatdemonstrates theimportance Corridor placeson Quality, Health, Safetyand Environment.

Quality, Health, Safety andEnvironment policies andprocedures are in place tosupport this mandate.

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19 MANAGEMENT SYSTEM CORE ELEMENTSContinuous Improvement

Approach

Core Element

Management CommitmentCommitmentQHSE Policies

Plan

Hazard Identification, Risk Assessmentand Risk ControlLegal and Other RequirementsObjectives and Performance TargetsManagement Plans

Implement

ResourcesRoles and ResponsibilitiesTraining, Awareness and CompetencyCommunication and ConsultationOperational ControlManagement of ChangeContractor ManagementEmergency Preparedness andResponseDocumentation and Records

Check

Monitoring and MeasurementAccidents, Incidents and Non-conformancesAudits

Review Review and Continual Improvement

Quality, Health, Safety and EnvironmentManagement System

Consistent internalstandards thatgovern all ouroperations.

Focus oncontinuousimprovement.

Based on ISOinternational

standards forenvironmentalmanagement,occupational healthand safety andquality.

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Long History of Exploration

in the Gulf of St. Lawrence

10 offshore wells drilled and manykilometers of seismic collected byother operators.

Most wells drilled in 1970-80s werelooking for oil:

5 - no hydrocarbon shows; 4 - minor shows; and 1 - significant gas discovery.

Old Harry was first identified in theearly 1970s.

Corridor Old Harry activities: 1996 - acquired Old Harry

exploration licences; 1998 / 2002 - new seismic; and 2010 - geohazard survey.

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Gulf of St. Lawrence

Basins

Anticosti Basin: Ordovician-Silurian Age; and About 415-490 million years old.

Maritimes Basin: Mid-Devonian to Permian age; About 280-390 million years old; Rock layers in the basin aremostly sandstone and shale; Mostly terrestrial (land derived)

sediments; and One marine rock layer Windsor

Group limestone, gypsum andsalt.

There are two basins from whichpetroleum could be produced in theGulf.

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Petroleum System

Source: http://geoinfo.nmt.edu/faq/energy/petroleum/Petroleum_geology_intro.pdf

Trap place where oil and gas canaccumulate.

Seal shale that prevents the escapeof oil and gas from the trap. Reservoir Rock porous rock

(sandstone at Old Harry) that can holdhydrocarbons.

Source Rock shale rich in organicmaterial.

Basic Elements of a Petroleum System

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Marit imes Basin

Covers most of thesouthern Gulf of St.Lawrence.

Old Harry is in the NE partof the basin.

Colours represent depthsto the bottom of the basin.

Historic well locationsindicated by small blackcircles.

Old Harry is located in alarge sedimentary basin.

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Old Harry Prospect

Shale Seal

Potential Reservoir

Reservoir and Source

Salt

Shale Seal

Potential Reservoir

Reservoir and Source

Salt 11

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Use of the Brion Island Well

to predict Old Harry Reservoir Rocks

10 metres of sand tested with abottom-hole drill stem test (DST).

Filled 1500 metre well bore with saltwater from reservoir in 45 minutes(= very good result).

The results showed that these sandsare capable of producing oil or gas,

even though the zone was filled withwater.

These reservoir parameters were usedto assess the hydrocarbon potential ofOld Harry.

DSTZone

The rocks in the Brion Island well were usedbecause this well is closest to Old Harry.

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Information on Source Rocks

from Scientific Literature

Type III

Type II

Type I

Oil prone

Gas prone

Dead plants and animals (organicmaterial) are converted to oil and gaswhen buried deep in the Earth.

Shale containing abundant organicmaterial are called source rocks.

Geologists study the organic material insource rocks to assess whether oil orgas could be generated.

The diagram at left can be used toclassify source rocks:

Type I oil prone; Type II oil or gas prone; and Type III gas prone.

Most source rocks in the MaritimesBasin are Type III with minor Type II.

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Brion Island Well

Corridors Source Rock Studies

Detailed geochemical studies werecompleted on the source rocks ofthe Brion Island well:

Geochemical evaluation; and Thermal Maturity

measurements.

These studies indicate that, at theimmature stage, most source rocksin the Brion Island well belong to the

oil and gas prone Type II-III organicmaterial.

These Type II-III organics couldpotentially produce oil and gas.

CapeBreton

IslandP.E.I.

Newfoundland

MagdalenIslands

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Petroleum System

Modelling at Old Harry

A specialized computer model was used to simulate the burial history of the BrionIsland Type II-III source rocks to assess the type of hydrocarbons at Old Harry. Results from Model:

The model indicates that oil and natural gas could be trapped at Old Harry. The most likely oil is a very light oil with an API gravity of 45-55o API. 15

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API Gravity of Various

Hydrocarbons

Natural Gas

Condensate

Crude Oil

Bitumen

API gravity is a measure of how light liquid petroleum is compared to water.If API gravity is greater than 10, it floats. If less than 10, it sinks.

50o API +

Heavy Crude < 28o API

Light Crude > 28o API +

12o API or less

Old Harry45-55o API

Note: API values are approximate

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Hydrocarbon Indicators

Flat Spot AVO Anomaly

Frequency AnomalySatelli te Seepage Slicks

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Update on Corridor s2010 Geohazard Site Survey

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Geohazard Survey

Conducted Safely

Conducted October 12-15, 2010. Employed a marine mammal observer

and a fisheries observer.

No fishing activity was observed. No marine mammals or sea turtles

were observed in the 500 m safetyzone during seismic acquisition. Someobserved at a distance.

Collected 63 hours of geophysical data,including low intensity seismic.

Collected side-scan sonar data. Seabed photography at 5 sites. Sediment samples at 3 sites. 19

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Date

Seafloor Characteristics at

Old Harry

Water depth is 464 m in the northwestand 478 m in the southeast.

The small depressions in seafloor areinterpreted as pockmarks:

Pockmarks are interpreted as possiblefluid escape structures; 1-3 m deep; 50 m across; 100 m in

length; and

The well will be located to avoidpockmarks.

Seafloor Bathymetry

Side-scan Sonar

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Sediment Samples and Photos

Show a Soft Muddy Sea Bottom

5 Camera stations. 3 Sediment sample stations.

Seabed Photograph GS4

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TILL

HORIZON H5BEDROCK

PROXIMAL GLACIOMARINE

DISTAL GLACIOMARINETO HOLOCENE

Sub-bottom Profile:

Characteristics of Seabed Sediments

POCKMARK

10m

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Example of Low Intensity

Seismic Line

10 m

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Geohazard Survey Indicates

Safe Location for Drill ing

Bathymetry, sidescan sonar, and sub-bottom profiler results were delivered inDecember 2010.

Seismic data and sea bottomphotography were delivered on February4, 2011.

Geohazard survey results showed: Good quality data werecollected; The seafloor was free of shipwrecks

or hazardous debris; and

A potential well location that is safefor drilling could be identified. A decision was made to submit a Project

Description to start the regulatoryapproval process for an exploration well.

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Overview of Corridors Proposed

Exploration Well within EL 1105

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Planning for a Safe and

Environmentally Responsible

Dril ling Program

Project Description filed with the C-NLOPB on February 21,outlining Corridors intention to drill 1 exploration well within EL1105.

Complete a thorough Environmental Assessment (EA): Conduct consultation; and Incorporate issues in EA.

Details of potential impacts and associated mitigation cannot beprovided until EA is complete. Complete detailed planning for the drilling operation and progress

other aspects of the regulatory approval process.26

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Exploration Well in the Newfoundland

and Labrador Offshore Area

The exploration well will be drilledsolely within EL 1105.

The drilling operation will last between 20to 50 days during an ice-free period.

The well will be located within theLaurentian Channel about 80 km WNWfrom Cape Anguille, NL.

The approximate water depth is 470m. The proposed well coordinates are in

the vicinity of Latitude 480305.294and Longitude 602339.385 (NAD83datum, geographic coordinates).

Drilling is anticipated to take placebetween mid-2012 and early 2014,depending on rig availability and

regulatory approvals.

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Drill Rig Options for Proposed

Exploratory Well

Three possible options: Moored semisubmersible; Dynamically positioned

semisubmersible; and

Dynamically positioned drill ship.

Mobile Offshore Drilling Unit

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Logist ical and Safety Support

for Drill Rig

2-3 Supply Vessels 1 at the rig at all times.

Several helicopter flights to the rigeach week.

Search and rescue helicopter onstandby.

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Example of

Well Design

Diagram is not toscale.

Similar well designto wells currentlydrilled on GrandBanks.

Shallow verticalwell with a totaldepth planned ofup to 2200 mbelow sea floor.

914mm Hole Drilled to 90m BSF

762mm Casing

660mm Hole Drilled to (300-600m) BSF

508mm Casing


245mm Casing


340mm Casing

450-470m

Water Depth

476mm Subsea BOP

533mm Riser to Rig

Note:

Diagram not to scale30

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Old Harry Exploratory Dril ling

Environmental Assessment Document

Will be prepared in accordance with Canadian EnvironmentalAssessment Act and the final C-NLOPB Scoping Document.

Environmental Assessment will be posted on the C-NLOPB

website and reviewed by C-NLOPB, other regulatory authoritiesand the public.

Details of potential impacts and associated mitigation cannot beprovided until EA is complete.

Note: C-NLOPB conducted a Strategic Environmental Assessment of the WesternNewfoundland and Labrador Offshore Area (LGL, 2005) and its Amendment (LGL,

2007), prior to issuing EL 1105 to Corridor.

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Environmental Assessment Document

Examples of key components

(complete list to be defined in scoping document) Commercial fisheries Sensitive areas Species at risk Marine ecosystem Marine fish and shellfish Marine mammals and sea turtles Marine and/or migratory birds Physical environment Accidental events Use of the marine environment Cumulative effects

* The C-NLOPB Final Scoping

Document will outline the

components to be included and

how the Environmental

Assessment is to be prepared.

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Exploratory Dril ling - Examples of

environmental protection measures

Design and implementation of an Environmental Protection Plan. Design and implementation of a Waste Management Plan. Adherence to the Offshore Waste Treatment Guidelines. Design and implementation of contingency plans. Use of environmental criteria (to minimize emissions) in the

selection of equipment.

Communication with fishing industry and other mariners withrespect to any issues that may arise.

Use of seabird, marine mammal and fisheries observers ondrilling rigs.

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Comprehensive Modeling Work

Spill Modeling

Being conducted by SL Ross, a Canadian and internationally recognizedcompany specializing in spill modeling.

Drill Mud and Cuttings Dispersion Modeling

Being conducted by AMEC Earth & Environmental, an environmentalengineering firm.

Results

Will be included in the Environmental Assessment. We encourage comments on the modeling through the C-NLOPBregulatory process.

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C-NLOPB Regulatory Process to

Apply for Approval to

Drill an Exploration Well

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Canadian Regulatory Regime

Exploratory drilling has been taking place in the EasternCanadian offshore area since the 1960s with over 500 wellsdrilled.

There is a rigorous regulatory process that operators mustfollow to seek approvals for exploration programs.

Two key approvals for exploration drilling:(1) Operations Authorization (OA); and

(2) Approval to Drill a Well (ADW).

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Legislative Requirements

to Drill a Well

Acts Canada-Newfoundland Atlantic Accord Implementation Act Canada-Newfoundland and Labrador Atlantic Accord

Implementation Newfoundland and Labrador Act Canadian Environmental Assessment Act Oceans Act Fisheries Act Navigable Waters Protection Act Canada Shipping Act Species at Risk Act Migratory Birds Convention Act Canadian Environmental Protection Act

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Legislative Requirements

to Drill a Well

Key C-NLOPB Regulations Drilling and Production Regulations Certificate of Fitness Regulations Oil and Gas Debris and Spills Liability Regulations

Petroleum Installation Regulations Key C-NLOPB Guidance Documents

Safety Plan Guidelines Environmental Protection Plan Guidelines Drilling and Production Guidelines Physical Environmental Program Guidelines Offshore Waste Treatment Guidelines Incident Reporting and Investigation Guidelines Data Acquisition and Reporting Guidelines Compensation for Damages Guidelines Financial Responsibility Requirements Guidelines

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Operations Authorization (OA) and

Approval to Drill a Well (ADW)

Requirements

Operations Authorization (OA) Approval to Drill a Well (ADW)

Environmental Assessment Seabed Survey Report

Environmental Protection Plan Detailed Geological Prognosis

Operator Safety Management System and

Safety Plan

Detailed Drilling Program

Training and Competency Casing Program

Contingency Plans (Emergency Response,Oil Spill Response, Ice Management, etc.)

Cementing Program

Certificate of Fitness Drilling Fluids Program

Letter of Compliance for the MODU and eachstandby vessel

Casing and Wellhead PressureTesting

Evidence of Financial Responsibility BOP Configuration

Benefits Plan BOP Pressure and Function Testing

Operators Declaration of Fitness (Refer to C-NLOPB website for details)39

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Potential Economic Benefits

of the Oil and Gas Industry

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East Coast Examples of Timelines

from Exploration to Development

Hibernia First discovered in 1979 First production occurred in 1997

Terra Nova First discovered in 1984 First production occurred in 2002

White Rose

First discovered in 1984 First production occurred in 2005

East Coast large oil and gas development projects have typically

taken decades to move from the first exploratory drilling to full

scale production.41

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Oil and Gas Activity Phases

Benefits: Degree of economic spin-off increases with color depth, with thedevelopment and production phases generating the most local benefits.

At each stage, a decision is made on whether or not to progress to the next stage.

Corridor Proposed

Exploration Well

Seismic Drilling Delineation EvaluationDevelopment

ProgramApplication

BoardDecision

ProjectSanction

FEED Development Production

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Benefits that the Oil and Gas

Sector can bring to a Region

Opportunities for local businesses. Spending on research and development. Education enhancements. Training enhancements. Infrastructure development (e.g., construction, fabrication, supply

service, etc.).

J obs/Employment. Royalties and taxes paid to government revenues support social andother programs in a province (e.g., hospitals, schools, etc.). Spinoff benefits purchase of goods and services from other industries

(e.g., retail, construction, fabrication, scientific and engineering, etc.).

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Example of Benefits from the

Offshore Oil and Natural Gas

Industry for Eastern Canada

Approximately $20 billion in capital spending by the oil andgas industry in NS and NL since 1995.

Approximately $7 billion in royalties paid to the provincialgovernments to date.

Approximately 4000 people employed directly in the oil andgas industry (this does not include indirect jobs).

(Reference: Summarized from CAPP, September 2010.)

Experience shows that responsible petroleum developmentcan have a significant positive impact on the economy.

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Summary and Conclusions

Corridor has submitted a Project Description to the C-NLOPB to startthe regulatory process to drill one exploration well within EL 1105.

A large number of approvals are required to obtain an approval to drilla well within Canadas rigorous offshore regulatory regime.

We are confident the proposed well can be drilled in a safe andenvironmentally responsible manner.

We want to design the best possible exploration project with inputfrom stakeholders.

Responses to questions and concerns will be addressed in theEnvironmental Assessment and through the regulatory process.

The Environmental Assessment will be available for review on the C-NLOPB website.

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Questions or Comments

Thank You.

Toll Free: 1-888-429-4511

Email: [email protected]

Website: www.corridor.ca 46

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