On March 12, 2013 Norstra Energy, Inc. entered into a farmout agreement with Summit West Oil, LLC for approximately 10,000 acres of oil and gas exploration property in northwest Montana, more fully described in the Farmout Agreement which is attached hereto as Exhibit 10.1 and known as the South Sun River Bakken Prospect. Under the terms of the Farmout Agreement, the company is required to carry out the following expenditures in order to earn ownership of the property: $60,000 by April 5, 2013 for the acquisition of seismic and other exploration data; $140,000 by April 30, 2013 for the reinterpretation of the seismic data as well as delineation and surveying of potential drill locations; Drilling of a horizontal well at an estimated expenditure of $5,000,000 by December 31, 2013; Drilling of an additional horizontal well at an estimated expenditure of $5,000,000 by June 30, 2013; and Drilling of an additional horizontal well at an estimated expenditure of $5,000,000 by December 31, 2014.