William J. McNaughton

Grand Banks Energy Corporation's ('Grand Banks' or 'the Company') principal business is the exploration, development and production of oil and gas properties. The Company was originally incorporated on June 25, 1969 under the British Columbia Companies Act and changed its name from Pacific Amber Resources Ltd. to Grand Banks Energy Corporation in 2003.The Company has been continued under the Alberta Business Corporations Act. On April 29, 2008, the Company announced it had entered into an agreement with Fairborne Energy Ltd. ('Fairborne') pursuant to which Fairborne has made an offer (the 'Offer') to acquire all of the issued and outstanding common shares of the Company by way of a takeover bid. Oil and gas operations are subject to the risks of exploration, development and production of oil and natural gas properties, including encountering unexpected formations or pressures, premature declines of reservoirs, blowouts, sour gas releases, fires and spills. Oil and natural gas exploration and development activities are dependent on the availability of drilling and related equipment in the particular areas where such activities will be conducted. Demand for such equipment or access restrictions may affect the availability and/or cost of such equipment to Grand Banks and may delay exploration and development activities. To the extent Grand Banks is not the operator of its oil and gas properties, the Company will be dependent on other operators for timing of activities related to non-operating properties and will be largely unable to direct or control the activities of the operators.