Octagon 88 Resources, Inc. signed a farm in agreement with the owner of the Red Earth project on January 22, 2013. Terms of that agreement were renegotiated in early January 2014 to model the farm in agreement terms to be more representative of a purchase of the negotiated working interest in the leases. The company will earns direct working interest of 50% by participating in the drilling costs on the first of 4 planned drill locations.

The JV partners agreed to pay from production a total amount of $2,500,000. - and a 3% residual GORR for 100% working interest which is fully earned after spudding the first well. The other participants are industry companies with similar interests in the Peace River area.

The Red Earth Project consists of 4 contiguous sections of P&NG leases, a (40 API) Keg River formation with P3 reserves of 1.2 Mill bbls light sweet crude oil recoverable, NPV(10%) CAD 20,000,000; the evaluation given is based on the project's last 3D seismic program. Other wells produced in the past have been known to be prolific long term producers. The first of two drill targets currently being surveyed and planned to be spudded for the end of the second quarter of 2014.

Initial productions by other producers in the area have shown single wells producing 300 to 500 bbl/d of light sweet crude oil. The extensive long term Keg River developments in the area possess quick net backs on capital with low operating costs. The cash flows derived from this conventional oil project will be major step to upgrading its listing to a more senior level.

Senior securities legal counsel has been retained for this goal and the company will advise the shareholders on its progress as it advances.