7/30/2019 Epsilon 2010 AIF_0039

1/1

Marcellus Shale assets over time by carrying the first $95 million of the Corporation's 50% shareof leasehold, drilling, completing, equipping and gathering costs attributable to the prospect.

2. Share Purchase and Sale Agreement between Epsilon and Nablus Petroleum Inc. (Nablus), datedFebruary 2, 2010, whereby the Corporation sold Epsilon Yemen for US$100,000 pendinggovernment of Yemen approval. The agreement calls for the Corporation to receive 20% of

proceeds from any subsequent sale of all or any part of the included 57.14% working interest inBlock 41 or, in the event that commerciality is declared, 25% of the cost recovery pool moniesreceived from the government of Yemen, in either case, the total amount not to exceedUS$5,000,000. On July 15, 2010, Epsilon and Nablus signed a Supplemental Letter Agreement(Letter Agreement) confirming that Epsilon will receive US$100,000 on the execution of theLetter Agreement and delivery of an irrevocable letter of instruction to Epsilons Barbados legalcounsel to immediately transfer all of the shares of Epsilon Yemen to Geopetrol Shawba Corp.Nablus will also pay US$156,000 to Epsilon, being one-half of the value of the letter of creditposted by Epsilon with the Ministry of Oil of the Republic of Yemen.

3. Participation Agreement between Epsilon and Gastem Inc., dated February 7, 2007 coveringGastems participation is the Corporations West Virginia drilling program by paying the next$1,050,000 to earn a 25% of the Corporations interest various wells in return for an elective 25%interest in certain acreage holdings controlled by Gastem in the Province of Quebec.

4. Participation and Exploration Agreement among WLS, SWO and Epsilon dated August 8, 2005covering the creation of an AMI for the state of New York, with the Corporation as operator andthe Corporation acquiring a 50% working interest in all then owned properties in exchange for theCorporation incurring the next $4.0 million of expenditures incurred in the AMI.

5. Northwest Area Study Agreement between Ministry of Mines and Energy and Epsilon EnergyInternational Ltd. dated June 12, 2008 covering an agreement whereby the Corporation has theexclusive right to negotiate an agreement to further explore any or all lands subject to theagreement for a period of one year, with no limitation as to the amount the Corporation would berequired to spend for such activities.

6. Participation Agreement between Epsilon Energy Ltd. and Spartan Exploration Ltd. dated August28, 2008 covering the Corporations right to earn an interest in acreage controlled by SpartanExploration by drilling two horizontal wells at a cost of approximately $5.0 million.

7. Consulting Agreement between 706147 Ontario, Inc. and Epsilon Energy Ltd. dated September27, 2009 covering administrative services provided to the Corporation by 706147 Ontario, Inc., acorporation owned by Gioia Arandjelovic, the spouse of the Corporations Executive Chairman.

8. Memorandum of Understanding with OGMC dated July 28, 2007 covering the acquisition of a57.14% paying interest and a 50% undivided percentage interest in Block 41 by the Corporationfor approximately $30 million.

9. Farm-in Agreement covering Block 41 in Yemen dated September 10, 2007 covering thedefinitive agreement of the acquisition of a 57.14% paying interest and a 50% undivided

percentage from OGMC for approximately $30 million.

10. Exploration and Production Sharing Agreement between the Government of the Sultanate ofOman and Epsilon Energy International Ltd. dated January 25, 2009 covering Block 55.

11. Participation Agreement (the Agreement) with Black Stone Minerals Company, L.P. (BlackStone) dated October 1, 2010, to explore for and produce oil and gas from certain lands located inClarke and Wayne Counties, Mississippi.

Electronic copies of these material contracts are available under Epsilon's profile on System for Electronic

38