Overview

Mainland Resources, Inc. is engaged in the exploration and development of two oil and gas prospects in the southern United States.

The DeSoto Parish leases in Northwest Louisiana are a shale-gas project that covers a central area in the fairway of what is now widely recognized as the Haynesville Shale discovery. Mainland Resources, Inc. has been developing the project in DeSoto Parish since early 2008 and has drilled multiple successful wells on the prospect with its joint-venture partner on the Haynesville zone, Petrohawk Energy.

By early 2010, Mainland had arranged for the sale of its 40% interest in the Haynesville shale zone. The Company retained all of the rights to the Hossten and Cotton Valley formations over the leases and is leveraging the proceeds from the Haynesville interests sale to pursue the development of the further shale-gas production on the leases. The DeSoto Parish leases continue to be a valuable source of revenue for Mainland Resources.

The Company’s Mississippi Prospect is located along the Gulf Coast Salt Basin in a region where Mainland believes there exists an extension of the Haynesville shale similar to the discovery region in Louisiana. After assessing proprietary data on previous drilling of a deep well in the region, management is convinced of its potential for major shale-gas production. The exploration area now extends to over 17,000 acres.

Mainland has spent considerable time and dedicated its resources to pursue this prospect. Company management is rolling out a comprehensive drilling plan to validate the potential of the Mississippi Haynesville Prospect by mid-2010.

All of Mainland’s prospects have been selected based on economics, low-risk to development, and on potential for immediate revenues through discovery of significant natural gas structures and/or accompanying oil. The Company’s focus remains the exploration and development Haynesville shale, Cotton Valley/Hosston and Bossier shale projects in the Gulf Coast and Southern USA.