A Compelling Case. A Focused Vision.

October 2006

Unconventional Natural Gas

TSX VENTURE: SPI

SPI

The corporate information contained in this presentation contains forward-looking forecast information. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonably accurate by Canadian Spirit Resources Inc. (CSRi) at the time of preparation, may prove to be incorrect. The actual results achieved during the forecast period will vary from the information provided herein and the variations may be material. Consequently, there is no representation by CSRi that actual results achieved during the forecast period will be the same in whole or in part as those forecast.

Disclosure Statement

SPI

Who We Are

A junior public exploration and development company focused on unconventional natural gas

Seasoned management team with expertise in unconventional natural gas development

Operations focused on Farrell Creek area of northeast B.C.

Farrell Creek resource estimated at over 1 tcf on the company’s 40,000 acres of land

Currently in pre-production stage with production and cash flow generation expected in Q3 2007

SPI

CSRi at a Glance

Shares outstanding 28.8 million

Listing TSX Venture: SPI

Recent share price $1.92

Market capitalization $55 million

Management and Directors 2.5%

Institutional shareholders 22.5%

Largest shareholder Sprott Asset Management (18.8%)

(As at September 15, 2006)

SPI

CSRi at a Glance

Total land holdings 40,000 acres

(62 sections)

Contingent resource*

Gething coals 12 – 16 bcf/section

Gething shales 11 – 17 bcf/section

Total contingent resource 1.4 – 2.0 tcf

Market cap / recoverable mcf $0.06 per mcf

*(Sproule Associates, April 17, 2006, Gething Formation only at Farrell Creek, B.C.)

Calculated on average contingent resource of 1.6 tcf at an estimated 60% recovery rate.

SPI

Unconventional Natural Gas

Unconventional natural gas includes natural gas from coal, shale gas, as well as gas from tight sands

Typically large, long-life resource

Unconventional natural gas is a rapidly growing sector in North America’s energy industry

Significant production in the U.S., 10 years ahead of Canada

SPI

Conventional vs. Unconventional Gas

Can evaluate with well logs

Immediate gas flow to well bore

May fracture to stimulate

Inorganic reservoir rock gas has migrated to reservoir trap

Permeability not depth dependant

Few wells to develop

Water/gas ratio increases

Reserve determination follows established guidelines

Needs specialized lab tests on cores

Gas diffuses slowly to fractures

Always fracture to stimulate

Organic reservoir rock is its own source rock

Permeability decreases with depth

Multiple wells and facilities

Water/gas ratio decreases

Requires production testing to demonstrate reserves

Source: Modified from AJM Petroleum Consultants

SPI

Fort St. John

Substantial Resource Play

Total unconventional gas potential in British Columbia is estimated at 90 tcf, of which 60 tcf is located in the Peace River Coalfield (shown in dark blue on locator map) where CSRi’s Farrell Creek property is located.

SPI

Focused Approach

Land

62 sections

Working Interest

94% average

Deep Rights

on over 80% of land

SPI

Farrell Creek, NE B.C.

Land

62 sections

Well Spacing

4 – 8 wells per section

Potential Well Locations

200 – 500

Productivity per Well

250 – 300 mcf/d

Total Potential Production

50 – 150 mmcf/d

SPI

Resource Report

Sproule Associates Limited Preliminary ReportApril 17, 2006:

Farrell Creek Gething Formation - Contingent gas-in-place resource potential

Coals12 – 16 bcf per

section

Shales 11 – 17 bcf per section

Total contingent resources 1.4 – 2.0 tcf

SPI

Farrell Creek Geology

Average depth to top of Cadomin is 900m

SPI

Farrell Creek Gething Formation

Coal Multiple thin seams

As many as 30 individual seams

Net coal thickness: average 25 – 50 feet

Gas content: 230 – 550 scf/ton

Shale Rich in organics

Interbedded with coal

Represents 50 – 65% of the formation

Gas content: 12 – 58 scf per ton

SPI

Staged Approach

CSRi Today

Typical Stages of an Unconventional Gas Program

Source: Modified from Lamarre Geological

SPI

Accomplishments to Date

Drilling Program has:

Confirmed resource parameters

Confirmed geological and resource consistency

Generated data for resource assessment

Demonstrated productive repeatability

Commenced production testing – three wells flaring

Commenced preliminary facility design and pipeline hot-tap application

SPI

Financial Summary

($ millions) 2004 2005June 2006

Cash & term deposits $6.0 $10.7 $3.3

Shareholders’ equity $18.8 $29.0 $28.6

Revenue $0.074 $0.499 $0.569

Net income($1.742

) ($3.806)($2.911

)

Cash flow($0.528

) ($0.468)($0.564

)

Net income/share ($0.09) ($0.15) ($0.11)

SPI

2006 Capital Program

($ millions)June 2006

Exploration $9.7

Land $0.1

Capitalized G&A $0.6

$10.4

Estimated expenditures to September 30 $7.9

Estimated fourth quarter capital $2.5

Estimated net cash position September 30 $6.0

Ongoing net monthly G&A costs $90,000

SPI

Risks

Production rate per well

Well density and recovery factor

Equipment and service costs

Natural gas prices

SPI

CSRi – Unique Strengths

Significant resource: 1.4 – 2.0 tcf (Gething only)

High working interest land position: 40,000 acres

Multiple prospective targets

Resource knowledge and expertise of technical team

Ready access to infrastructure and pipeline

Advancing towards development phase of resource

Creating Shareholder Value

Balanced Approach. Focused Vision.

SPI

Canadian Spirit Resources Inc.

Suite 1950, Ford Tower

633 6th Avenue S.W.

Calgary, Alberta T2P 2Y5

Telephone (403) 539-5005

E-mail: info@csri.ca

TSX Venture: SPI

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