BlackPearl Resources Inc. - Reserves

Overview Core Properties

Reserves

The following tables summarize certain information contained in the independent reserves report prepared by Sproule Associates Limited ("Sproule") as of December 31, 2009. The report was prepared in accordance with definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook ("COGE") and National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). Additional reserve information as required under NI 51-101 is included in the Company's Annual Information Form.

Summary of Oil and Gas Reserves - Forecasted Prices and Costs

(Company interest, before royalties)	Oil&NGL Reserves	Natural Gas Reserves	2009 BOE ⁽¹⁾	2008 BOE ⁽¹⁾
	(Mbbls)	(MMcf)	(Mboe)	(Mboe)

Proved developed producing	2,733	4,484	3,482	5,405
Proved developed non-producing	1,048	190	1,080	1,594
Proved undeveloped	6,973	240	7,013	3,475
Total proved	10,754	4,914	11,573	10,474
Probable	11,795	1,659	12,071	15,856
Total proved plus probable	22,549	6,573	23,645	26,330

⁽¹⁾BOE's may be misleading, particularly if used in isolation. In accordance with NI 51-101, a BOE conversion ratio of 6 Mcf: 1barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Net Present Value of Reserves - Forecasted Prices and Costs

	Net Present Values of Before Tax Future Net Revenue Discounted at
	0%	5%	10%	15%	20%
	($000 €(tm)s)
Proved
Developed producing	117,404	107,986	100,361	94,023	88,655
Developed non-producing	38,930	32,594	28,022	24,613	21,997
Undeveloped	194,445	148,960	119,799	99,424	84,324
Total proved	350,779	289,540	248,181	218,060	194,975
Probable	403,044	261,218	188,571	144,494	114,923
Total proved plus probable	753,823	550,759	436,752	362,554	309,899

	Net Present Values of After Tax Future Net Revenue Discounted at
	0%	5%	10%	15%	20%
	($000 €(tm)s)
Proved
Developed producing	117,404	107,986	100,361	94,023	88,655
Developed non-producing	38,930	32,594	28,022	24,613	21,997
Undeveloped	194,445	148,960	119,799	99,424	84,324
Total proved	350,779	289,540	248,181	218,060	194,975
Probable	302,282	197,515	143,295	110,119	87,725
Total proved plus probable	653,061	487,055	391,476	328,179	282,701

Notes:
Columns may not add due to rounding

The pricing assumptions used in the Sproule evaluation are summarized below.

Pricing Assumptions - Forecast Prices and Costs

Year	WTI Cushing 40 ° API	Edmonton Par Price 40 ° API	Hardisty Lloydblend 20.5 ° API	Alberta AECO-C Spot	Inflation rate	Exchange rate
	(US$/bbl)	(CDN$/bbl)	(CDN$/bbl)	(CDN$/MMBtu)	(%/yr)	(US$/Cdn$)
2010	79.17	84.25	74.14	5.36	2.0	0.92
2011	84.46	89.99	78.29	6.21	2.0	0.92
2012	86.89	92.61	76.86	6.44	2.0	0.92
2013	90.20	96.19	78.87	7.23	2.0	0.92
2014	92.01	98.13	79.49	7.98	2.0	0.92
2015	93.85	100.11	81.09	8.16	2.0	0.92
2016	95.72	102.13	82.73	8.34	2.0	0.92
2017	97.64	104.19	84.40	8.52	2.0	0.92
2018	99.59	106.30	86.10	8.71	2.0	0.92
2019	101.58	108.44	87.84	8.90	2.0	0.92
2020	103.61	110.63	89.61	9.10	2.0	0.92
Escalation rate of 2.0% thereafter

Notes:
⁽¹⁾The pricing assumptions were provided by Sproule Associates Limited
⁽²⁾None of the Company's future production is subject to a fixed or contractually committed price.

This was the first year Sproule was engaged to prepare a reserves evaluation for the Company. In the prior year the Company requested another independent engineer to evaluate possible ("3P") reserves on the Company's properties. The 2008 reserves report included possible reserves for the Company's SAGD project at Blackrod. In 2009, the Company elected not to undertake an evaluation of its possible reserves. Given the significant capital expenditures required and the uncertainty of the timing of those expenditures, the Company felt it was appropriate to defer further review of possible reserves until we have results from our proposed pilot project and a commitment from the Company's Board of Directors to proceed with commercial development of the Blackrod lease.

On a net present value basis (10% discount, before tax), approximately 58% of the value of reserves were attributable to the Onion Lake area and 24% was attributable to the Mooney area. No reserves were assigned to the Blackrod project.

Definitions:

"Proved" reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves.
"Probable" reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves.
"Developed" reserves are those reserves that are expected to be recovered from existing wells and installed facilities or, if facilities have not been installed, that would involve a low expenditure (e.g. when compared to the cost of drilling a well) to put the reserves on production.
"Developed Producing" reserves are those reserves that are expected to be recovered from completion intervals open at the time of the estimate. These reserves may be currently producing or, if shut-in, they must have previously been on production, and the date of resumption of production must be known with reasonable certainty.
"Developed Non-Producing" reserves are those reserves that either have not been on production, or have previously been on production, but are shut in, and the date of resumption of production is unknown.
"Undeveloped" reserves are those reserves expected to be recovered from know accumulations where a significant expenditure (for example, when compared to the cost of drilling a well) is required to render them capable of production. They must fully meet the requirements of the reserves classification (proved, probable, possible) to which they are assigned.
The Net Present Value (NPV) based on Sproule Forecast Pricing and costs, before taxes, discounted at 10%. The estimated NPV does not necessarily represent the fair market value of our reserves. There is no assurance that forecast prices and costs assumed in the Sproule evaluations will be attained, and variances could be material.