Octagon 88 Resources Inc. provided an update from CEC North Star's executive summary of the Plan Of Development (POD). The POD proposes a combined phased development of the 'Manning Projects' which are located in the Peace River block of north-western Alberta, Canada. The land contains a projected 3+ billion barrels of Petroleum Initially in Place (PIIP), based on 3rd.

party oil engineering reports and management estimates. The POD defines the first development to target the primary recovery methods of approximately 200 million recoverable barrels of 13 to 15 API heavy oil in the Elkton Erosional Edge. The development plan provided in the POD, were based on forecasted recovery rates produced by the dynamic simulation testing recently conducted by Schlumberger Ltd. on the first project.

Primary recovery methods (cold flow) of oil in the Elkton Erosional edge, with an 8% to 14% recovery rate combined with staged and scalable 5,000 bbl/d to 10,000 bbl/d projects. Developed over 25+ years with peak oil production rate occurring near the end of year 4 (2018) at over 30,000 bbl/d and over 200 million barrels of recoverable oil using only primary production and waterflooding Including the use of infill drilling and then subsequent pressure maintenance with an additional 8% recovery. Followed in later stages with EOR methods achieving a forecasted potential recovery rate of 40% +.

Use of single vertical wells with 5 to 10 horizontal legs and single pumps to minimize capital and maximize recovery. Initial production is projected to be 175 bbl/d with a harmonic depletion curve. Findings down dip from the Erosional Edge Elkton and Debolt formations indicate a potential additional 1+ billion barrels PIIP (internal estimate) not previously identified or reported.

Additionally, 3'840 acres have recently been acquired as an expansion of the Elkton project to capture the balance of the Elkton sweet spot. The expansion of land base results in a 18-20% increase of the size of the Elkton Erosional Edge project which was originally estimated by 3rd party engineers to hold 870+ million barrels. The licensing process for drilling has begun to spud the first production wells; targeting initial oil sales to commence in the first quarter of 2014 as outlined in the POD from the Elkton Erosional Edge Project.