STOCK - CITYVIEW CORPORATION LIMITED SYMBOL - U.S. - NASD: CTVWF AUSTRALIA - ASX: CVI FRANKFURT - DAX: C4Z TICKER - NASD - CTVWF ASX - CVI DAX - C4Z 52 WEEK RANGE - HIGH - N/A - LOW - N/A SHARES OUTSTANDING - BASIC - 363,025,975 - DILUTED 455,584,178 MARKET CAPITALIZATION - N/A PROJECTS OIL AND GAS 1. KWANZA RIVER, ANGOLA A joint venture application has been filed by Cityview, Quest Energy Middle East Limited and its two Anglican parties (Nexoil and Energy Africa Ltd.) for two onshore oilfields in the middle of the Kwanza Basin, Angola. The Kwanza Basin shares the same oil rich structural history and sedimentation pattern as the successful West African Basin oil projects. A recent billion barrel discovery has been made in equivalent active rift sediments onshore at Mboundi in the neighboring south Congo Basin. The operator of the project is Quest Energy Middle East Limited (QEML). Quest is recognized in the Mideast as a qualified developer of oil and gas and power generation and has its' headquarters in Dubai. Cityview owns a controlling interest in European Oil Limited which owns 6% of Quest Energy Middle East Limited (Quest). At a future time, Quest is to facilitate the listing of Cityview on the Dubai Stock Exchange. All onshore Kwanza Basin blocks have been reserved for Angolan companies. Seven offshore blocks, one south Cabinda onshore blocks and two Kwanza Basin onshore blocks are being offered in 2008. Cityview has linked up with Angolan groups who are prequalified for tenders and Cityview will determine whether it is opportune to tender for one of these blocks. Further, Cityview has acquired an option over an oil refinery. In Feb. /08, 4 Angolan offshore oil interests were offered to Cityview and these offers are being evaluated. On August 18/08 Cityview announced that it is completing the asset purchase of an oil refinery for an aggregate consideration of US$320 million most of which will be debt financing and will be in the name of Cityview rather than Pensador. The plant is being shipped from the U.S.A. and is expected to be operational by the first quarter of 2010. The facility is expected to be capable of refining 50,000 bspd. On May 16/08, Cityview made a major announcement regarding financing of its Angolan projects. Cityview announced that Pensador Resources Inc., a U.S. company, is in the final stages of securing $1.1 billion in equity. Pensador shares will be subscribed by Angolan nationals and other parties at $20 per share. In exchange for 3.4 million shares valued at US$68 million, Cityview will transfer 1) opportunity to invest in the Angolan offshore licenses that Cityview has been evaluating and 2) opportunity to invest in the oil refinery in West Africa which is in an advanced due diligence stage. Pensador will have 68.5 million shares which has a market capital of $1.4 billion. The difference between $1.4 billion and $1.1 billion represents shares to be
allotted to Angolans as part consideration for assets to be transferred to Penasdor. Cityview has been granted the right to increase its share holdings from 3.4 million shares to 4.2 million shares by purchasing the additional 800,000 shares for a discounted price of $15 per share for a total of $US12 million. Two U.K. firms have offered to subscribe for up to 75 million Cityview shares at a price of Au$.222 being a premium to the May 15/08 share price. There is a claw back option which would entitle Cityview to force a merger of Pensador with Cityview leaving Cityview as the surviving holding company at which time the company will seek a higher U.S. stock exchange listing. The funds of almost $1.1 billion would go to develop numerous projects that Cityview is pursuing in Angola. 2. CAMEROON By Oct. /07, Cityview had acquired the rights to purchase 40% of the North Matanda PH 72 oilfield in Cameroon. This was accomplished by Cityview acquiring the right to purchase 100% of Petro Energy Africa Ltd. Petro Energy owns 57% of Turnberry Resources which holds 70% of Matanda PH 72. Upon final settlement of this purchase, Cityview is to pay US$4.5 million plus 40 million Cityview shares. The Pensador deal outlined above does not impact Cityview s Cameroon interests. URANIUM 2. LONGONJO, ANGOLA The Longonjo license covers an area of 3,764 sq. km. in central Angola. Work to date has revealed three prospects in the license area. The project has the potential for a significant deposit but more drilling must be done to ascertain the extent of the deposit, if any. Further drilling programs are planned in the future. Cityview announced on Jan. 22/07 that they had increased their interest in Logonjo and Ucua from 30% to 36.3%. On Feb.27/07, Cityview announced that Cityview had further increased its interest in both Longonjo Project and the Ucua beryllium Project from 36.3% to 42.7% in consideration of Cityview covering the next phase of work programs budgeted at US$130,000. On March 1/07, the company announced that Murphy Geological Services completed a structural interpretation of satellite imagery for the Longongo license and identified a total of 27 exploration targets across the license. The company indicated it will expand its current exploration program to include these targets. By November of 2007, Cityview increased its working interest to 79 %( 55.3% of net equity) in Longonjo and Ucua. The Penasdor deal will provide funding to develop a JORC compliant copper/gold/rare earths project. 3. UCUA, ANGOLA The Ucua license contains a world class pegmatite complex (beryllium). Beryllium is a metal important in high temperature steels and in the control function of nuclear power plants. On Feb.6/07, the company announced that the work program had commenced by contracting a firm to conduct structural interpretation of satellite imagery for the Ucua license. Further exploration will be funded by the Pensador deal outlined above. COPPER 4. ANGOLA By Feb. /08, Cityview had acquired a 40% interest in Fortitude Minerals Ltd. Fortitude is a holder of seven concession areas in Angola. Included in Fortitude s licenses is the Cachoeiras de Binga concession which has had 6,000 meters of core drilled. Fortitude s immediate objective is to bring this resource to a bankable feasibility study so that production can commence. Cityview, after the Pensador deal, retains its 22,717,562 shares valued at US1.39 per share for a total of US$31,577,411 million.
Also drilling at Longonjo has revealed extensive copper and iron oxide mineralization over a 1.6 km. strike area and a major drilling program is now in progress. The Pensador deal will provide funding to develop both the Fortitude and Longonjo projects. This includes funding for the preparation of a JORC compliant resource report and commencement of copper production for Fortitude and a JORC compliant resource at Longonjo. DIAMONDS 5. ANGOLA Cityview has a 41% interest in the Luachisse and Nhefo alluvial diamond concessions. In March of 2008 Cityview indicated that it was fast tracking production at these two concessions. Cityview further has acquired an option to take over Canzar Resources which holds the rights to the concessions at Luachisse, Nhefo and Alto Chicapa. A long term operating agreement has been signed wherein Endiama, the Angolan National Diamond Company, has agreed with Canzar to guarantee for the first 4 years a minimum net income to Canzar of US$12.5 million per annum and to replace any of the 3 named concessions with others if any of the 3 named concessions is not commercially viable. The Pensador deal will provide funding for the fast track development of these projects and Cityview will receive a 10% interest in the net profits to be received by Canzar in the Luachisse and Nhefo alluvial production. On Aug. 7/08, CityView announced that it has entered into an agreement with Enditrade for the development of transportation and supply logistics for support of the Angolan mining industry. Enditrade is a logistics company wholly owned by Endiama, the Angolan National Diamond Company which is a government department responsible for the development of Angola s diamond industry. Under the agreement, CityView will enter into a joint venture with Enditrade to create a SPV (special purpose vehicle) which will be owned 51% by Enditrade and 49% by CityView. Enditrade already has agreements with international manufacturers for the supply of mining equipment, truck assembly plants, fuel storage tank farms and general supply logistics services and the development of new port facilities in key locations to assist in the importation of mining equipment. Under the business plan, CityView is anticipating a significant return on its investment (including a tax holiday) in the first year of operation of the SPV. As part of the agreement, Enditrade will contribute independently valued assets and CityView will contribute equity capital on an equal basis. 6. INDONESIA On Jan. 22/07, Cityview announced it has inherited 2 small free carried interests in oil and gas concessions in Indonesia and is seeking to acquire a range of projects in north Sumatra with excellent cash flow. By April, 2008 Cityview s website indicates that it is concentrating in Africa and Cityview appears to have abandoned Indonesia for the time being. PEOPLE The senior management has Australian, American and Middle East experience in finance and resource exploration. FINANCIALS In a quarterly report dated Sept. 30/06, the company indicates that cash in the bank was AUD$1,238,328 after expenditures for the quarter of AUD$1,263,712. Despite a $4 million loss as at June/06 (due to a receivable write-off due to inconclusive drilling results which may be recoverable at some future time), the balance sheet as at June 30/06 looked healthy with current assets (mainly cash) of $2.5 million and non-current assets of approx. $2.6 million for total assets of $5.1 million with virtually no debt. For the quarter ended Dec. 31/06, Cityview announced a decrease of cash of AUD$332,000 which reduced their cash on hand to AUD$907,000. They are
expecting to spend A$375,000 in the 1st Q of 2007. On Dec. 13/07, the company announced it had raised AUD$10 million by placing 41 million shares at.24 per share. The monies were raised to increase the company s holdings in Fortitude and to fund oil projects in Angola and Cameroon. On Jan. 17/08, 3.3 million shares in Fortitude were acquired. For the 12 month period ending Dec. 31/07, the company expended AUD$1.6 million on administration and AUD$9.1 million on administration. As at Dec. 31/07, the company had AUD$12 million cash on hand. Approximately $AUD7 million is expected to be spent in the 1 st Q of 2008 on exploration, evaluation and development. The Pensador completely changes the dynamics of funding future projects as US$1.1 billion will be available to fund these projects and Cityview will not have to further dilute shares to raise funds for development of its projects. On June 18/08, Cityview announced that an independent report prepared by PricewaterhouseCoopers estimated the value of the company s assets between US$182 million (.42 per share) up to US$296 million (.68 per share). The valuation is based on the three main assets of the Fortitude copper concessions, the 10% net profit interest in the Luachisse and Nhefo alluvial diamond projects and the 4.26 million shares in Pensador. OVERVIEW This is a speculative play that still is fairly cheap to acquire. There is a lot of stock outstanding and that is a concern. The stock has fluctuated from.06 to as high as.39 per share in the past 18 months. The company is flush with cash and has no debt. A number of projects are in play at this time. If they are granted an interest in the oil concessions in Angola, the stock has great potential especially if anything significant is discovered. Central Africa has historically been politically unstable and this is always a concern in the African third world. The Pensador deal dramatically brightens the future of Cityview as it provides significant funding that will bring some of the Angolan projects into immediate production and also indirectly allows Cityview to participate in the potential of future Angolan oil and gas exploration. The market agreed by increasing the value of Cityview shares by 27% in the U.S. after the Pensador deal was announced. Update August 25/08