Projects Overview
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General Update on Activities- May 11th, 2015


Georox estimates that its current production is approximately 190 boepd comprised of 110 boe/d of light oil, 63 boe/d heavy oil and 17 boe/d of natural gas. Georox's estimated production is 58% light oil & ngls, 33% heavy oil, and 9% solution gas

Red Earth/Otter, Alberta

On May 9th, 2014 Georox Resources Inc. completed an acquisition of oil and gas interests located in the Red Earth area, approximately 106 kms north of lesser Slave Lake (320 kms northwest of Edmonton) in northwest Alberta, from a company at arm's length. The purchase price of the assets was approximately $6,100,000 with an effective date of April 1st, 2014.

The properties subject to the Transaction consist of working interests in a total of 11.38 sections of land comprised of 2.125 sections in Red Earth that has eight producing oil wells and one standing oil well in which Georox acquired a 100% working interest. In addition, Georox acquired the well bores to three abandoned wells in which it will hold a 100% working interest in one and a 50% working interest in the two others. In Otter, located 25 kms to the NW of Red Earth, Georox has a 100% working interest in 1.0 section of prospective land.

The wells are currently producing approximately 90 barrels of light oil and approximately 20,000 cubic feet per day of solution natural gas (93 barrels of oil equivalent per day net to the corporation) from the Granite Wash & Slave Point formations.

Georox is the operator for all wells except two of the abandoned wells.

Georox believes that there is an opportunity to drill two to three additional wells at Red Earth and potential beyond primary recovery through the implementation of water flood/pressure support to significantly extend the life and recoverable reserves from the Red Earth properties. Georox is currently reviewing and assessing the Red Earth properties in detail to identify opportunities to enhance production before initiating new operations. Georox also believes that there is an opportunity to drill one horizontal Slave Point well in Otter.

The purchase price for the Transaction was approximately $6,100,000 with an effective date of April 1, 2014. The acquisition metrics work out to a purchase price of $39,900 per boepd (Proved + Probable) and $20.38 per boe's (Proved + Probable) for this light oil property. Reserve life index is 16.8 years for Proved Developed Producing reserves and 24.8 years for Proved + Probable reserves.

Non-Brokered Private Placement

The Corporation completed a private placement (the "Private Placement") of 8,450,923 units of the Corporation ("Units") at a price of $0.065 per Unit for aggregate gross proceeds of $549,310. Each Unit consisted of one common share of the Corporation (a "Common Share") and one-half of one Common Share purchase warrant (each whole such warrant, a "Warrant"). The Warrants were not be listed. Each whole Warrant was exercisable for one Common Share at a price of $0.14 per Common Share for the period to and including April 30, 2015.

All securities in the Private Placement were subject to a four month hold period from closing. In connection with the Private Placement, agents were paid an aggregate of $9,475 finder's fee (10% of the aggregate subscription price).

The proceeds of the Private Placement were used in connection with closing the Transaction.

After giving effect to Private Placement, Georox now has 35,597,108 Common Shares outstanding on a basic basis.

Directors or officers subscribed for 3,896,154 (46.1%) of the Private Placement.

Pouce Coupe, Alberta

On June 1st, 2013 Georox Resources Inc. completed an acquisition of oil and gas interests located in the Pouce Coupe area, northwest Alberta, from a company at arm's length. The purchase price of the assets is approximately $2 million with an effective date of May 1st, 2013.

The assets consist of a majority interest in 1.5 sections of land (960 gross acres and 576 net acres) with three current producing wells, a 52.42% working interest in one section, 50 per cent in one- quarter section and 100 per cent in a final one-quarter section. Two wells are operated by Georox and one well is operated by an industry third party.

Both operated oil wells are tied into a central oil Battery @ 15-17-81-12W6M. Natural gas is tied into a Bonavista pipeline at 1-20-81-12W6M, which is connected to a Chinook Compressor at 11-02-81-12W6M. The 11-02 natural gas moves into the Spectra Energy Midstream system for final processing. Produced oil is pipeline spec and is trucked to the Pembina Pipeline Terminal at Gordendale, Alberta (280 miles NW of Edmonton, Alberta).

The Company's non-operated producing oil well is equipped as a single well battery. Natural gas is conserved through a Bonivista pipeline system.

The wells are currently producing approximately 16 barrels of light oil and approximately 32,000 cubic feet per day of solution natural gas (30 barrels of oil equivalent per day net to the corporation) from the Boundary Lake formation.

The company believes there is potential to drill additional infill development or horizontal well(s) on the acquired lands.

Silverdale Property

GP Channel Project

On September 25, 2009 the Company signed a farm-out agreement with a Company in Alberta at the cost of $650,000. This enabled the Company to earn a 15-per-cent interest on farm-out lands consisting of 1,040 acres located in Saskatchewan. The farm-out lands have both 2-D and 3-D seismic support as well as a geological cross-section analysis which verifies the Mannville channel play. Three-dimensional seismic confirms the presence of an undeveloped, deep-cut oil-bearing Mannville channel. Based on analogous wells drilled into similar Mannville channels, reserves in excess of 100,000 barrels per well are potential. The joint venture partners have identified a total of approximately 16 horizontal oil wells in this play. The pooling of the lands with an adjacent producer (Husky Energy) to form a larger area of common interest has been completed. The 3D Seismic program, interpretation and Pooling was completed with an adjacent partner (Husky, the designated Operator) which will yield a pooled working interest of 6.9% to Georox. The drilling of four (4) horizontal wells was commenced in the fourth quarter of 2011 at a gross cost of $4,700,000 ($350,000 net to Georox). A further 4 horizonal wells were drilled in the fourth quarter of 2013 for a gross cost of approximately $5,640,000 ($390,000 net to Georox).

An additional vertical well (15-01-48-28w3) was drilled in December 2013 by the Operator for it's exclusive 100% working interest in the Sparky zone. It was unsuccessful but did encounter 12 meters of oil pay in the GP channel sand in which Georox had an interest of 6.9%. The well was purchased by the original group and pooled so that Georox obtained an 8.458% in this well at a total cost of approximately $866,000 (Drill, Complete & Equip) in which Georox's net share was $73,300. Examination of the shared 3D seismic of the area, a small linear feature can be seen which runs parallel to the main GP channel and may be a new side channel. This feature will be followed up with further horizontal drilling.

These 9 wells are currently producing 700 bopd Gross or 50.1 bopd Net to Georox.

Sparky Non Channel Project

Through its Joint Venture Partner (Northern Blizzard Inc. of Calgary, Alberta), the Company has drilled, cased, and equipped ten wells in the initial drilling program. Gross production for the eight wells during the month of April 2015 was 13.6 m3/d (85.3 bopd) and Georox's 15% interest share is = 2 m3/d (12.8 bopd).

The Company has earned its 15% interest on the farm-out lands consisting of 1040 acres at a cost of $600,000 following the completion of the wells. Typical recoveries are in the order of 100,000 bbls per well.

Tentatively, discussions are taking place to potentially budget the drilling of 1 or 2 more Sparky wells in 2016. In addition the setting up of 2 water injection wells for 2 waterflood patterns are in preliminary plans for further pressure maintenance and oil recovery in 2016.

Coteau Lake, Saskatchewan

On May 9th, 2012 Georox Resources Inc. signed a participation agreement with respect to a farm in agreement on lands in the Coteau Lake area in southeastern Saskatchewan and northeast Montana.

The participation in the farm in plus additional land acquisitions includes four and three-quarter sections of land (3040 gross acres or 682 net acres) with the potential of high productivity light/medium (30 degree API) Mississippian oil. The contract depth of the initial earning well is approximately 1,975m.

On July 16th, 2012 Georox announced that the initial earning well on its Coteau Lake, Saskatchewan prospect (31.875% BPO, 21.25% APO) was completed and is currently producing approximately at 31 bopd gross (8 bopd net) @ 75% watercut. The water disposal costs for the 8-10 well are high and a water disposal scheme is currently being reviewed for the 7-10 well. After the 7-10 SWD well is activated it is planned to implement high volume lift production on the 8-10 well.

A second horizontal well, 8-10Hz to 4-10-01-20W2, was spudded on November 23rd and was completed and tested on February 13th, 2013. The well encountered high volumes of water, and operations have been suspended pending further geological and geophysical reviews.

Future activities include conversion of the 7-10-1-20 W2 to a Salt Water Disposal Well to reduce Water Trucking & 3rd party water disposal costs from the existing oil well at 8-10-1-20 W2. Following that a Workover will be proposed for the second horizontal referred to above. After the above mentioned geological and geophysical review is complete plans will be put forward to drill 1 -- 2 vertical wells on the south side of the geophysical play to further prove up the Ratcliffe zone. Success in the south part of the play could lead to a future horizontal well (s).

Kitscoty Property

On June 16, 2010 the Company signed a farm-out agreement with a company in Alberta for $220,000. This will enable the company to earn a 25-per-cent working interest in the farm-out lands, which consist of 160 acres located in the Lloydminster area of Northern Alberta. The overall plan is to re-enter, recomplete/work over, equip and produce, via high-volume lift, up to five potential Sparky heavy oil wells. The potential is a gross incremental recovery of 800,000 barrels of oil. Georox's contribution will be used as a part of a $440,000 initial work program, committed to by the joint venture partners which includes the re-entering of two wells in phase 1 of the program.

In August, 2011, the well C11-18-50-2w4 was re-entered, re-completed and put on high volume lift. As of the end of October the well was pumped off as planned and tested at 20 bopd with a 4% oil cut. A second well at 13-18-50-2W4 was successfully reviewed for re-entry, re-completion and high volume lift to continue the program. The C11-18 well is temporarily shut-in until the rest of the development takes place to reduce operating costs.

Lloydminster (Lashburn ) Property

On July 7, 2010 the Company purchased 240 acres in the Lloydminster area of Alberta for $200,000. Georox has also entered into a letter of intent with a company in Alberta which provides for a joint venture to develop the lands. As of October 31st the Joint Venture partner has paid $200,000 toward the drilling and completion of an initial well on the lands. Georox has now assigned a 50-per-cent interest in the lands to its joint venture partner. The overall plan is to verify the Waseca channel sand presence by acquiring additional seismic in the area followed by drilling one to two vertical wells.

The existing Seismic was reviewed and the first vertical well was identified at 2C-4-51-01W4. The well was drilled in December 2010 and it was verified that the Waseca channel did not run through 3-7 of Section 4-51-1W4. This well currently stands as a future water disposal well.

Northern Alberta Farmouts

Georox currently has a land inventory of 100% of 640 acres in Swan Hills and 96% of 640 acres in Virginia Hills with potential of high productivity light Devonian oil. In addition Georox has 100% of 1440 acres in the Meekwap area which also has potential in the medium productivity light Devonian oil.

This brings Georox's total production to approximately 190 boepd.