Labrador Technologies Inc. plans to enter into a credit facility (the "Credit Facility") with KSS Capital Partners Inc. (the "Lender") in the amount of $500,000. The Credit Facility also constitutes an arms' length transaction. Advances made pursuant to the Credit Facility will provide immediate working capital to fund current outstanding payables, to fund the costs of holding the Special Meeting (as defined below) and fund the costs of preparing an engineering evaluation of the oil and gas property that is the subject of the Acquisition.

Additionally, the Credit Facility will provide the funds necessary for the Corporation to pursue the Transactions and to repay certain longstanding payables of the Corporation. Certain advances under the Credit Facility will be required, and made, before the Acquisition and the Concurrent Financings can be closed.