Mr. Robert McClinton reports

On Feb. 7, 2012, Schlumberger Ltd. filed an amendment to a statement on Schedule 13D with the United States Securities and Exchange Commission announcing, among other things, that it intends to explore possible transactions involving its ownership of approximately 56 per cent of the issued and outstanding common shares of CE Franklin Ltd. As a result of this announcement, CEF's board of directors has met and created a special committee, composed entirely of independent directors of the board, to actively represent the interests of the company and its shareholders in any transactions that may be proposed. CEF and the special committee intend to work co-operatively with Schlumberger to achieve the best outcome for the company and its shareholders. The special committee is composed of Robert McClinton, Keith Turnbull, Michael Hogan and Brad Thompson.

We seek Safe Harbor.