Resolute Resources Ltd. provided an update in respect of the HZ ANTHONY 12-19-83-23 which commenced drilling November 24th and was completed on December 3rd. Gething channel sand was encountered as per geologic modeling. 2350 metres of open hole were drilled over 4 laterals, which were terminated short due to formation dropping below log verified oil saturation and a desire to avoid unnecessary risk.

Significant oil shows, gas response and visible sample porosity were observed during drilling as well as no apparent losses due to fracturing. Upon bringing the pump online the well did not demonstrate sustained inflow and as a result a workover was performed due to potential cuttings bridging and very heavy oil was encountered. Subsequent testing of the hydrocarbons recovered during the workover showed approximately 6 API bitumen.

Attempts were made following the workover to aid the initiation of flow but were ultimately unsuccessful. While significant high quality reservoir rock was encountered throughout the drilling of the well the formation fluid is not conducive to cold flow production. Based on fluorescence tests on wells that penetrated the target reservoir and fluid tests of similar target sands in the area Resolute expected higher API oil pre-drill.

The company is in the process of re-evaluating its land holdings based on the results achieved to date on its Grimshaw property. The company's Flood acreage includes an abandoned well with a fluid test within the Gething that produced 35 API oil. The company is assessing options to validate the quality of this fluid test at Flood in a timely and cost-effective manner and will provide an update upon conclusion of this assessment.