Feb 25, 2011
Clarification on February 22, 2011 news release
International Frontier Resources Corporation ("IFR" or the "Company" -- IFR TSX-V) today provides clarification on its news release issued on February 22, 2011 as it pertains to the meaning of contingent resources estimates included in the news release dated 22 February 2011.
The Company's commissioned report prepared by McDaniel & Associates Consultants Ltd. was dated July 1, 2008. The report evaluated the Summit Creek SDL and the Stewart Lake SDL located in the Central Mackenzie Valley, Northwest Territories. The report contained the following disclosure on contingent resources.
The recoverable volumes of natural gas from the property were deemed to be contingent resources and not reserves because of the following:
Further sub-classification of the contingent resources for the economic status was considered to be undetermined for the purposes of this evaluation. Additional detailed analysis with respect to infrastructure costs, environmental impacts and overall project capital costs would require further study and was considered beyond the scope of this evaluation as outlined and requested by the Company.
The contingent resources estimates presented have been based on the definitions and guidelines as defined in the Canadian Oil and Gas Evaluation Handbook (COGEH) and National Instrument NI 51-101. A summary of these definitions is presented below.
The resources assigned to the Stewart SDL have been classified as contingent.
The Canadian Oil and Gas Evaluation Handbook (COGEH) Volume 1 defines contingent resources as quantities of oil and gas estimated to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political, and regulatory matters, or a lack of markets. Contingent Resources are further classified in accordance with the level of certainty associated with the estimates and may be sub classified based on project maturity and/or characterized by their economic status.
By definition, reserves are commercially (and hence economically) recoverable. A portion of contingent resources may also be associated with projects that are economically viable but have not yet satisfied all requirements of commerciality. Accordingly, it may be a desirable option to subclassify contingent resources by economic status:
Economic Contingent Resources are those contingent resources that are currently economically recoverable.
Sub-Economic Contingent Resources are those contingent resources that are not currently economically recoverable.
Where evaluations are incomplete such that it is premature to identify the economic viability of a project, it is acceptable to not that the project economic status is "undetermined" (i.e., "contingent resources -- economic status undetermined")
In examining economic viability, the same fiscal economic conditions should be applied as in the estimation of reserves, i.e., specified economic conditions, which are generally accepted as being reasonable (refer to COGEH Volume 2, Section 5.8)
Contingent resources have been determined for the following mutually exclusive categories:
Additional clarification of certainty levels associated with reserves estimates and the effect of aggregation is provided in the COGE Handbook.
In the news release dated February 22, 2011 the company did not provide the low estimated contingent gross resources for the Summit Creek and Stewart Lake SDL's which are; Summit Creek 8.9 BCF and 1.4 million barrels of oil and Stewart Lake SDL 24 BCF.
The Company reported today the issuance of up to 5,000,000 common shares at a price of $0.07 per share. The non-brokered private placement is subject to TSX-V approval. The shares issued will be restricted from trading for a 4-month period from the date of stock exchange approval. The private placement will be a related party transaction within the meaning of the applicable stock exchange policies as directors and officers are participating in the private placement.
The Company also reported today the issuance of 1,500,000 stock options to Directors and consultants. The options are exercisable for a period of five years at a price of $0.09 per share.
For additional information on the Company visit www.internationalfrontier.com or contact;
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of this release". This news release is not intended for distribution to US news wire services or for dissemination in the United States and does not constitute an offer of the securities described herein. This news release includes forward looking statements. Forward looking statements in this news release include, but are not limited to, statements with respect to the company's resources or contingent resources in an area or surrounding area to IFR's assets. The potential of IFR's assets and the surrounding area, the metrics and timing of potential developments of IFR's assets, IFR's business strategy and the company's anticipated capital expenditures and budgets. Readers are cautioned not to place undue reliance on forward looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. Forward looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the company. These risks and uncertainties include, but are not limited to; resource evaluations and estimates, the company's exploration success and its ability to transport oil and gas production, oil and gas prices, the company's ability to raise capital, land costs, drilling costs and the general risks related to obtaining joint venture partners, farmouts or farmins and all other risks associated with exploring for and the development and production of hydrocarbons as well as the general economic and business conditions The Company seeks Safe Harbor.
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