A National Instrument NI 43-101 technical re- port has been pre- pared on the properties by Norwest Corp., of Salt Lake City Utah which reports utilizing unverifiable data from maps and cross sections presented in historical documents has estimated the ranges of preliminary potential in place tonnages to be 159 – 178 million tonnes within the license areas. The (NI) 43-101 technical report reported the coal at the Onjuul is classified as Lignite A based on ASTM standards. The potential in-place coal quality for the Onjuul lignite, reported in historical documents for both core and trench samples are listed in the table above. Norwest has recommended a drilling program that would consist of approximately 20 geotechnical/coal quality core holes and three hydrologic pump test locations. Five of these holes should be drilled to verify the coal thicknesses reported in the historical documents. The estimated cost of this drill program is US$1,000,000 and will take approximately three months to complete. The drilling program may be accelerated if equipment is available.


PROPERTY ACQUISITION AND PAYMENTS

We have agreements to acquire a 100% interest in the licenses by making payments of up to USD $19 million over 22 months, issuing two million common shares to the vendors and a 6% Royalty on produc- tion. The first installment of the purchase price of USD $3,370,000 is due 60 days after approval by the TSXV. The first tranche of 1,000,000 common shares is due 60 days after approval, 500,000 common shares 12 months and 500,000 common shares 18 months after approval. All shares issued are subject to a four month hold period.



RECENT NEWS RELEASES AND UPDATES

>> 08/10/09 - PRESS RELEASE - Onjuul Coal Project Acquisition
>> 08/10/09 - PRESS RELEASE - Gulfside Announces non-brokered $8,303,652 CAD Private Placement
>> 05/26/09 - PRESS RELEASE - Gulfside Clarifies Its Disclosure On Its Onjuul Property
>> 04/30/09 - PRESS RELEASE - Gulside Acquires Onjuul Coal Property in Mongolia


NI 43-101 REPORTS ON THE ONJUUL PROPERTY


>>Download Norwest NI 43-101 Report of 08/14/09

Norwest has recommended a drilling program that would consist of approximately 20 geotechnical and coal quality core holes, and three hydrologic pump test locations. Five of these holes should be drilled to verify the coal thicknesses reported in the historical documents. The estimated cost of this drill program is $1-million (U.S.). It will take approximately three months to complete.

the first hole of the drilling program on the Company’s Onjuul Coal Prospect in Mongolia has been completed. This first hole was located as an offset to Hole #12 of the Russian/Mongolian Exploration program of 1973. The hole, designated NL-09-22C TB001, was cored to 120meters and then changed to Rotary drilling as a faster and cheaper method. The GPS location is 538626E x 5167713N. The hole has been completed at 201 meters depth.
The coal intercepts are as follows: From
8.96 to 15.65m - 6.69m
16.45 to 17.36m - .91m
45.85 to 84.6m - 38.75
130m* to 136m - 6m (*Rotary samples, poor seam thickness delineation)

This compares favorably with the offset hole #12 . The core has been logged, split and boxed ready for testing at the laboratory in Ulaanbaatar and will be shipped once additional holes have been completed.
The drillers now have two rigs operating on a 24 hour basis (2 – 12 hr shifts).
The camp has 21 sleeping gers, 1 office ger and a larger Mess Hall ger. Total personnel on site number about 44.

logging core

logging core

logging core

logging core

logging core

A Buddhist lama came to camp to bless the work and invoke a wish for safety on the job

A picture of the night time flood light

preparing to log core

Dave Leppert Chief geo from Norwest, in the office

Coffee time in the Mess Hall ger. Dave, Bat & Robert

drill rig

another view of the business end of the rig

toilets and showers

Head Geologist and crew in "core shack"

core being logged

Different Drill Collars on the Onjuul Property and different GPS Coordinates                                                                                                   

A drill collar on the Onjuul property. Drilled in 2005. Most of the holes were drilled on License 6107 . There are about 7 holes on the License 9304. Most of the casings are marked with the number of the hole drilled by the Russian/Mongolian exploration team - we checked the hole locations with a GPS and compared to the map of the licenses.

 

Robert Card: " We used a GPS to plot the location of the drill hole - this is an old Russian/Mongolian drill hole surface casing and we checked to see its location on the ground compared to its situation on our maps and license."

 

GPS coordinates of the drill hole. This shows the GPS - (CO-ORDS SHOWING) leaning against the surface casing of the drill hole.

 

Looking on the map over a drill collar with the GPS in hand.

Another drill collar on the Onjuul property

A drill collar on the Onjuul property

 

Robert Card: " On the property just after visiting a drill collar and hole."

 

Robert Card: " We used a GPS to plot the location of the drill hole - this is an old Russian/Mongolian drill hole surface casing and we checked to see its location on the ground compared to its situation on our maps and license."

 

Robert Card: " We used a GPS to plot the location of the drill hole - this is an old Russian/Mongolian drill hole surface casing and we checked to see its location on the ground compared to its situation on our maps and license."

A drill collar on the Onjuul property

 

Robert Card: " We used a GPS to plot the location of the drill hole - this is an old Russian/Mongolian drill hole surface casing and we checked to see its location on the ground compared to its situation on our maps and license."

 

Robert Card: " We used a GPS to plot the location of the drill hole - this is an old Russian/Mongolian drill hole surface casing and we checked to see its location on the ground compared to its situation on our maps and license."

 

Robert Card: " We used a GPS to plot the location of the drill hole - this is an old Russian/Mongolian drill hole surface casing and we checked to see its location on the ground compared to its situation on our maps and license."

One more drill collar on the Onjuul property

A drill collar on the Onjuul property

 

Robert Card: " We used a GPS to plot the location of the drill hole - this is an old Russian/Mongolian drill hole surface casing and we checked to see its location on the ground compared to its situation on our maps and license."

 

Robert Card: " We used a GPS to plot the location of the drill hole - this is an old Russian/Mongolian drill hole surface casing and we checked to see its location on the ground compared to its situation on our maps and license."

 

Robert Card: " We used a GPS to plot the location of the drill hole - this is an old Russian/Mongolian drill hole surface casing and we checked to see its location on the ground compared to its situation on our maps and license."

One more ..

A drill collar on the Onjuul property

 

Robert Card: " We used a GPS to plot the location of the drill hole - this is an old Russian/Mongolian drill hole surface casing and we checked to see its location on the ground compared to its situation on our maps and license."

 

Robert Card: " We used a GPS to plot the location of the drill hole - this is an old Russian/Mongolian drill hole surface casing and we checked to see its location on the ground compared to its situation on our maps and license."

 

Robert Card: " We used a GPS to plot the location of the drill hole - this is an old Russian/Mongolian drill hole surface casing and we checked to see its location on the ground compared to its situation on our maps and license."

One more ...

A drill collar on the Onjuul property

 

Robert Card: " We used a GPS to plot the location of the drill hole - this is an old Russian/Mongolian drill hole surface casing and we checked to see its location on the ground compared to its situation on our maps and license."

 

Robert Card: " We used a GPS to plot the location of the drill hole - this is an old Russian/Mongolian drill hole surface casing and we checked to see its location on the ground compared to its situation on our maps and license."

 

Robert Card: " We used a GPS to plot the location of the drill hole - this is an old Russian/Mongolian drill hole surface casing and we checked to see its location on the ground compared to its situation on our maps and license."

Coal is already visible on the surface of the Onjuul property

Coal on the surface - it is an old pit that was dug to expose the coal on the hillside of a small hill.

 

Coal on the surface - it is an old pit that was dug to expose the coal on the hillside of a small hill.

 

Coal on the surface - it is an old pit that was dug to expose the coal on the hillside of a small hill.

 

This is one of the pits they dug to expose the coal seam. Just shows the wide spread coal.

Coal on the surface - it is an old pit that was dug to expose the coal on the hillside of a small hill.

 

This was one of the two 2005 holes where they pulled the casing - not much left to see except a few pieces of drill core and some disturbed dirt and rocks.

 

Coal on the surface - it is an old pit that was dug to expose the coal on the hillside of a small hill.

 

Coal on the surface - it is an old pit that was dug to expose the coal on the hillside of a small hill.