Cannon Exploration Inc. (fka CNEX)

[XXXstocks]

off the website, January 25th, 2010

Dear Shareholders:

It is my pleasure to introduce myself to you as the new president and Chief Executive Officer of Cannon Exploration. My considerable experience with exploration and mining companies in North and South America will serve Cannon well in developing it into an exploration company to be reckoned with.

I would like to thank Mr. Gilberto Oliveros for the hard work and dedication that he brought to the Company during his time as President of Cannon Exploration. He will remain as a Director and the Company will continue to benefit from his valuable insight and experience in the exploration industry.

We realize that many shareholders have been frustrated with the lack of news/information flow in the past. My first order of business has been to increase the transparency of Cannon Exploration to the investment community by filing appropriate documentation with the authorities. It is my belief that investors must have access to as much information as possible in order to make educated investment decisions and under my tutelage, Cannon will make every effort for better investor communication.

We continue to be excited with the prospect of gold’s performance. It remains strong and many analysts believe that the gold spot price will break through $1,200/oz in the second quarter of 2010 as investor demand is driven by fears of a double dip recession, continuing huge government deficits, very loose monetary policy and potentially significant inflation is set to return. The incentives to invest in gold should therefore be powerful this year, and should also be reflected in companies involved in gold exploration.

Cannon intends to further develop its Queen Alexandra gold mining project. The Queen Alexandra Property is located just outside of the town of Dryden, in Northern Ontario, Canada. The property has historical gold values, and a recent survey reconciled and supported the known historical information that mineralization is present in that area, and trends along the same zone where several trenches and the Queen Alexandra shaft and exploration pit exist. We believe that the Queen Alexandra project has tremendous potential and intend to significantly further its development.

The Company will also continue to focus its acquisition strategy on gold opportunities in North America, and in particular, Canada. Our exploration strategy is based on selecting properties that fulfill the basic geological criteria required for the possibility of gold mineralization. The Company will also use its best efforts to deploy ethical business strategy regarding all acquisitions, property development, and reporting of same to its shareholders.

We look forward to a successful New Year as we continue to explore and develop our projects and implement strategies to increase shareholder value.

Sincerely yours,

Edwin Solano

http://www.cannon-exploration.com