(1)	What is the difference between natural gas and coalbed methane ("CBM")?
	Methane is the principal component of natural gas and is created by the decomposition of organic matter. Methane is found all over the world in various types of geologic formations. Coalbed methane is the name given to methane found in coal seams. It is formed during coalification, the process that transforms plant material into coal.
(2)	Is there any difference to the consumer in respect of the source of methane?
	No, gas must meet a minimum pipeline specification to be move through U.S. and Canadian common carrier pipelines. It must be no less then 99% methane and the remainder is water vapour. This "sales" gas is normally processed through gas plants in the gas fields or coalbed fields. Both sources of methane, once processed, can be commingled in the pipeline.
(3)	What is the difference between coalbed methane "CBM") and coal mine methane ("CMM")?
	CBM is methane in coal seams and is often referred to as virgin coalbed methane, or coal seam gas. CMM is the subset of CBM that is released from the coal seams during coal mining. In 2001, the U.S. Department of Energy, Energy Information Agency ("EIA") reported U.S. CBM production at nearly 1.6 trillion cubic feet ("TCF"). CMM accounted for 40 billion cubic feet ("BCF"), or 2.6 percent of the total. Tyner Resources Ltd. has both prospective CBM and CMM on its North Bohemia concessions in the Czech Republic.
(4)	Is CBM a recent phenomenon?
	Although the practise of making coal gas from burning coal was established in the 19th century, the concept of drilling wells into coal beds to extract just the methane really began at the beginning of the 1990s. Total CBM production in the USA was 99BCF in 1989; it had increased to 1,614 BCF by 2002. Whereas the US Industry has lead the development of this resource, other countries including Australia, Canada, Germany, and the United Kingdom have seen rapid increase in CBM and CMM production. In Canada the first commercial CBM well was placed in production in June 2003. For the year 2003, production was approximately 18BCF. For 2004, production is expected to be between 50 and 60 BCF.
(5)	What are the major differences between CBM wells and conventional gas wells?
	Conventional gas wells are (a) deeper, (b) cost more to drill and complete (c) usually have very high initial production rates, (d) normally have shorter production life.
	Gas wells today, tend to be drilled to total depths of below 7,000 and in the case of the Gulf of Mexico as deep as 17,000 (all the shallow formations have been drilled up). CBM wells average 800 to 1,200 feet in the San Juan, Raton and Powder River producing basins with a few wells penetrating 2,000 feet.
	Deep gas wells can cost upwards to US$50 million for offshore deepwater locations. Even a 6,000 to 7,000 foot well in East Texas or Northern Louisiana can cost $1 million drilled, completed and ties-in. Shallow CBM wells, in the Powder River Basin, average $125,000 to $150,000 inclusive of equipment and tie-in.
	Whereas conventional wells can have impressive initial production rates, sometimes exceeding 20 million cubic feet (20,000 MCF) per day, for deep offshore wells, the average reserve life is low. In the year 2002, the EIA estimated that the reserve life of new gas wells was 4.2 years, which reflects the maturity of the industry. CBM wells have low production rated. Although some CBM wells have produced in excess of 2,000 MCF per day, typical initial production rates are 100 to 150 MCF per day. However, due to low depletion, CBM wells have a lifespan of 25 to 40 years.
(6)	How profitable is CBM?
	Quicksilver Resources Inc. of Fort Worth, Texas, listed on the New York Stock Exchange, (symbol: KWK) is widely regarded as one of the leaders in CBM development. They have a wholly owned Canadian subsidiary by the name of MGV Energy Inc. located in Calgary, Alberta. MGV is very active in the Horseshoe Canyon play of Central Alberta. In 2004, per a presentation made on June 17th, they plan to drill 224 net wells into this play. Their finding and development costs, based on experience, are projected to be range from $0.50 to $0.74 US per MCF. Rate of Return, on an individual well basis is estimated to be 74.2 % and a 1.58-year payout for the Gayford formation.
(7)	If CBM prospects are so profitable in Canada and the USA, why is Tyner looking at the Czech Republic/
	There are four major reasons why Tyner is active in the North Bohemia Basin of the Czech Republic. These reasons are: (1) Favourable Geology, (2) Competition, (3) Existence of Markets, and (4) Infrastructure.
	Favourable Geology: The North Bohemia Brown Coal basin, approximately 40 to 50 miles north of Prague, near the German border, is approximately 540 square miles and the major coal seams attain thickness of up to 130 feet. The coal is Tertiary and is of similar age as the Powder River Basin. Sidewall cores taken from existing coalmines indicate high methane content, and a well-developed cleat system. Whereas the average coal seam thickness in the Powder River Basin is 18 to 20 feet, Tyner is scheduled to drill in locations with over 90 feet of coal seam thickness. Competition: Success attracts competition. For example, the recent success in the Horseshoe Canyon play has resulted in government CBM leases being acquired for as high as US$384.00 per acres (June 2004 Alberta Land Sales). Tyner has acquired the right to 70% ownership upwards of 17,000 gross acres. Applying these recent prices to Tyner's potential 11, 900 net acres, the CBM rights that Tyner is committed to paying up to $850,000 would cost as much as $4.5 million if they were located in Canada or the USA. Markets: The Czech Republic uses on average 330 to 340 billion cubic feet of natural gas per annum. Domestic conventional gas production accounts for about 1%. Imports are from Russia (78%) and Norway (22%). New domestic sources would displace imports and improve the balance of payments. The Czech Republic's entry into the European Union provides for the free market movement of gas within the European market. Infrastruture: In addition to having proven CBM reserves, commercial success demands that markets be available and accessible. For example, the Powder River Basin of Northeast Wyoming and Southeast Montana currently has the largest established reserve base in the Lower 48 states. However, it is pipeline-restricted meaning that although the production capacity is higher; gas delivery is restricted to approximately 900 million cubic feet per day. Tyner's North Bohemia project is located within 3 miles of the local natural gas distribution company. More importantly, it is approximately 10 miles from the Transgas trunk line, which carries Russian gas into Germany.
(8)	What is the history of CBM in the Czech Republic?
	In the early to mid-1990s, there was some drilling activity in North Moravia near the Silesia Mountains abutting the Polish border. This is an area of black lignite coal deposits. At that time US production was established only in the San Juan and Black Warrior, which were also black, lignite deposits. Problems were encountered in drilling through heavily faulted formations, which made it difficult to control. Additionally, the coal beds were tight with low permeability as well as being dry. There was good gas content (upwards of 350 to 400 scf per tonne) and 156 different coal seams. Today there is some minor CBM production, which is being sold into the local North Moravian gas distribution system.
(9)	Why should Tyner expect better results in North Bohemia?
	Subsequent to the North Moravia exploration activity, the Powder River CBM field was discovered and developed in the USA. It is the first major "brown coal" basin in the World to be exploited for CBM. The techniques, like open hole completions and stainless steel mesh that have been pioneered in the Powder River basin are applicable to North Bohemia.
	Additionally, Tyner has primary evidence of the existence of CBM in this basin, DR. Jaroslav Nemec of the University of Ostrava, in a report to the Czech Parliament, in 1992, presented test core results of CBM content in coal seams of up to 500 single cubic feet per tonne.
(10)	Please describe the field program that will confirm the presence of commercial CBM in the North Bohemia Basin
	Three wells will be drilled, cored and placed on pump commencing in September 1, 2004. Two wells Libkovice No.1 ("LE-1") and Libkovice No.2 ("LE-2") will be drilled to depths of 270 metres (approximately 840 feet) and 275 metres (approximately 850 feet) and subsequently a third well at Osek ("OS-1") will be drilled to approximately 240 metres (740 feet).
	The intersected coal seam will be cored with the core samples being subjected to independent sorption and desorption testing to measure the methane content. Additionally a set of logs will be run and the wells will be paced on pump to assess water content. The program, conditional upon weather and any unexpected logistical issues, is expected to be completed by the end of October 2004
(11)	Who is performing the independent sorption/desorption tests on the coal bed core?
	The United States Geological Survey (USGS) is performing the laboratory tests.
(12)	Should the results of the three test wells indicate that there is commercial potential, what is Tyner’s next step?
	Tyner, in conjunction with its two partners, Foree International LLC, of Dallas, and Kendrick Oil & Gas Ltd, of Abilene, will undertake to drill and place into production a six well pilot project adjacent to one of the three test wells. This process will require the procurement of a production license from the Czech Ministry of the Environment. We have met with Ministry officials who have identified what is required and accordingly it is not an insurmountable process.