ParaFin Corporation (PFNO)

[Dragonwing]

Who owns the rights to drill for oil?

ALTO PARANA BLOCK
EXPLORATION AND DEVELOPMENT PROJECT - PARAGUAY

EXECUTIVE SUMMARY

Through its parent company, Shire International Ltd., Petro Global Energy (the Company) holds an exploration concession with its local partners granted by the Paraguayan government for hydrocarbon exploration on a 5.2 million acre block, the Alto Parana Block. This Block lies over the hydrocarbon rich Parana Basin in Eastern Paraguay near the Parana River and the city of Ciudad del Este.

Guarani Exploration and Development Co. (Guapex) subsequently farmed in and drilled the shallow Ines #1 and #2 test wells into the Permian strata. As a result, Guapex earned 60% of Texaco’s interest in the Block. Subsequently, Texaco gave up its interest entirely to Guarani in 1995. Given the fact that oil was selling for around $10 per barrel at the time, and based on the limited seismic data available and the geotechnical and geochemical software available at the time, Texaco apparently decided to put its resources to work in other areas. Guapex has renewed and maintained control of the area under exploration permits since that time. Shire acquired 100% of the rights in the Alto Parana Block from Guarani in March 2007.

Executive Summary