Mr. John Wright reports

PETROBANK TERMINATES THAI(R) LICENSING NEGOTIATION

Petrobank Energy and Resources Ltd. has terminated licensing negotiations with a third party international oil company (IOC). Petrobank has concluded that the ultimate execution of this agreement has been unreasonably protracted as the IOC has had a final version of the agreement, executed by Petrobank, since July, 2010. No technical aspects of the THAI technology have been at issue. The company has therefore determined that it is in Petrobank's best interest to focus on its other licensing opportunities. By terminating negotiations with this IOC, the company is now able to initiate discussions with other parties operating in the same geographic region, which have also indicated strong interest in the THAI technology.

We seek Safe Harbor.