Document

Friday, December 11th, 2009

At the offices of Blake, Cassels & GraydonThree Bentall Centre595 Burrard Street, Suite 2600Vancouver, BC Canada

Notice of Annual and Special Meeting & Information Circular

Management Proxy Circular 2009 1

Notice of Annual and Special Meeting of Shareholders

Take notice that the annual and special meeting (the “Meeting”) of shareholders of TAG Oil Ltd. (the “Company”) will be held at

Suite 2600, Three Bentall Centre, 595 Burrard Street, Vancouver, British Columbia, on December 11, 2009 at 10:00 a.m., local time,

for the following purposes:

A. Annual Meeting Matters 1. ToreceivetheconsolidatedfinancialstatementsoftheCompanyforitsfiscalyearendedMarch31,2009,andthereportofthe

auditor thereon.

2. To elect directors of the Company for the ensuing year.

3. ToappointanauditoroftheCompanyfortheensuingyearandtoauthorizethedirectorstofixtheauditor’sremuneration.

B. Special Meeting Matter 1. Toconsiderandifthoughtfittopass,withorwithoutvariation,anordinaryresolutiontore-approvetheCompany’sShareOption

Planallowingthegrantingofupto10%oftheCompany’sissuedandoutstandingcommonsharesatanytime,asmoreparticu-

larly set out in the attached Information Circular.

C. General Matters1. ToconsideranypermittedamendmenttoorvariationofanymatteridentifiedinthisNoticeandtotransactsuchotherbusiness

as may properly come before the Meeting or any adjournment thereof.

AnInformationCircularaccompaniesandisdeemedtoformpartofthisNotice.TheInformationCircularcontainsdetailsofmat-

ters to be considered at the Meeting. The Company will provide to any shareholder, free of charge, upon request to the Company,

telephonenumber(604)609-3350orfaxnumber(604)682-1174,acopyofanyyearendandinterimfinancialstatementsofthe

Companyfiledwiththeapplicablesecuritiesregulatoryauthoritiesduringthepasttwoyears.Additionalinformationisalsoavailable

free of charge on SEDAR at www.sedar.com.

A shareholder who is unable to attend the Meeting in person and who wishes to ensure that such shareholder’s shares will be

voted at the Meeting is requested to complete, date and sign the enclosed form of proxy, or another suitable form of proxy, and

deliver it in accordance with the instructions set out in the form of proxy and in the Information Circular.

DatedatVancouver,BritishColumbia,October26,2009.

BY ORDER OF THE BOARD

Garth Johnson

ChiefExecutiveOfficer

2 Management Proxy Circular 2009

This Information Circular is furnished in connection with the solicitation of proxies by the management of TAG Oil Ltd. (the

“Company”) for use at the annual and special meeting of its shareholders (the “Meeting”) to be held on December 11, 2009 at

the time and place and for the purposes set forth in the accompanying notice of the meeting (the “Notice of Meeting”). Except

where otherwise indicated, the information contained herein is stated as at October 26, 2009.

InthisInformationCircular,referencesto“theCompany”,“we”and“our”refertoTAGOilLtd.“CommonShares”meanscommon

sharesinthecapitaloftheCompany.“BeneficialShareholders”meansshareholderswhodonotholdCommonSharesintheirown

name, “Registered Shareholders” means shareholders whose names appear on the records of the Company as the registered hold-

ersofCommonSharesand“intermediaries”referstobrokers,investmentfirms,clearinghouses,trusteesoradministratorsofself-

administeredRRSPs,RRIFs,RESPsandsimilarplansandsimilarentitiesthatownsecuritiesonbehalfofBeneficialShareholders.

AlldollarfiguresareinCanadiandollarsunlessstatedotherwise.

General Proxy InformationSolicitation of Proxies

The instrument of proxy accompanying this Information Circular (the “Proxy”) is solicited by and on behalf of the management of the

Company. The solicitation of Proxies will be primarily by mail, but Proxies may be solicited personally or by telephone by directors,

officersandregularemployeesoftheCompany.TheCompanywillbearallcostsofthissolicitation.Wehavearrangedforintermediar-

iestoforwardthemeetingmaterialstoBeneficialShareholdersandwemayreimbursetheintermediariesfortheirreasonablefees

and disbursements in that regard.

Appointment of Proxyholders

TheindividualsnamedintheaccompanyingProxyaretheofficersoftheCompany.If you are a shareholder entitled to vote at the

Meeting, you have the right to appoint a person or company other than either of the persons designated in the Proxy, who need

not be a shareholder, to attend and act for you on your behalf at the Meeting. You may do so either by inserting the name of that

other person in the blank space provided in the Proxy or by completing and delivering another suitable form of proxy.

The only methods by which you may appoint a person as proxy are submitting a Proxy by mail, hand delivery or fax.

Voting by Proxyholder

The persons named in the Proxy will vote or withhold from voting the Common Shares represented thereby in accordance with your

instructions on any ballot that may be called for. If you specify a choice with respect to any matter to be acted upon, your Common

Shares will be voted accordingly. The Proxy confers discretionary authority on persons named therein with respect to:

a) eachmatterorgroupofmattersidentifiedthereinforwhichachoiceisnotspecified,otherthantheappointmentofanauditor

and the election of directors;

b) anyamendmenttoorvariationofanymatteridentifiedtherein;and

c) any other matter that properly comes before the Meeting.

In respect of a matter for which a choice is not specified in the Proxy, the persons named in the Proxy will vote the Common

Shares represented by the Proxy for the approval of such matter.

Information Circularas at October 26, 2009


Registered Shareholders

If you are a Registered Shareholder, you may wish to vote by Proxy whether or not you are able to attend the Meeting in person. If

yousubmitaProxy,youmustcomplete,dateandsigntheProxyandthenreturnittotheCompany’stransferagent,Computershare

InvestorServicesInc.(“Computershare”),byfaxwithinNorthAmericaat1-866-249-7775,outsideNorthAmericaat416-263-9524,

orbymailorbyhandat9thFloor,100UniversityAvenue,Toronto,Ontario,M5J2Y1notlessthan48hours(excludingSaturdays,

Sundays and holidays) before the Meeting or the adjournment thereof at which the Proxy is to be used.

BeneficialShareholders

ThefollowinginformationisofsignificantimportancetomanyshareholdersoftheCompanywhodonotholdCommonSharesintheir

ownname.BeneficialShareholdersshouldnotethattheonlyProxiesthatcanberecognizedandacteduponattheMeetingare

those deposited by Registered Shareholders.

If Common Shares are listed in an account statement provided to a shareholder by a broker, then in almost all cases those Common

Shareswillnotberegisteredintheshareholder’snameontherecordsoftheCompany.SuchCommonShareswillmorelikelybe

registeredunderthenamesoftheshareholder’sbrokeroranagentofthatbroker.IntheU.S.,thevastmajorityofsuchCommon

Shares are registered under the name of Cede & Co. as nominee for The Depository Trust Company (which acts as depositary for

manyU.S.brokeragefirmsandcustodianbanks),andinCanada,underthenameofCDS&Co.(theregistrationnameforTheCana-

dianDepositoryforSecuritiesLimited,whichactsasnomineeformanyCanadianbrokeragefirms).

IntermediariesarerequiredtoseekvotinginstructionsfromBeneficialShareholdersinadvanceofshareholders’meetings.Every

intermediary has its own mailing procedures and provides its own return instructions to clients.

IfyouareaBeneficialShareholder:

YoushouldcarefullyfollowtheinstructionsofyourbrokerorintermediaryinordertoensurethatyourCommonSharesarevotedat

the Meeting.

The form of proxy supplied to you by your broker will be similar to the Proxy provided to Registered Shareholders by the Company.

However, its purpose is limited to instructing the intermediaries on how to vote on your behalf. Most brokers now delegate responsi-

bility for obtaining instructions from clients to Broadridge Financial Solutions Inc. (“Broadridge”) in the United States and in Canada.

Broadridge mails a voting instruction form in lieu of a Proxy provided by the Company. The voting instruction form will name the same

personsastheCompany’sProxytorepresentyouattheMeeting.Youhavetherighttoappointaperson(whoneednotbeaBenefi-

cial Shareholder of the Company), other than the persons designated in the voting instruction form, to represent you at the Meeting.

To exercise this right, you should insert the name of the desired representative in the blank space provided in the voting instruction

form. The completed voting instruction form must then be returned to Broadridge by mail or facsimile or given to Broadridge by phone

orovertheinternet,inaccordancewithBroadridge’sinstructions.Broadridgethentabulatestheresultsofallinstructionsreceived

and provides appropriate instructions respecting the voting of Common Shares to be represented at the Meeting. If you receive a

voting instruction form from Broadridge, you cannot use it to vote Common Shares directly at the Meeting. The voting instruc-

tion form must be completed and returned to Broadridge, in accordance with its instructions, well in advance of the Meeting in

order to have the Common Shares voted.


Although,asaBeneficialShareholder,youmaynotberecognizeddirectlyattheMeetingforthepurposesofvotingCommonShares

registered in the name of your broker, you, or a person designated by you, may attend at the Meeting as proxyholder for your broker

and vote your Common Shares in that capacity. If you wish to attend at the Meeting and indirectly vote your Common Shares as

proxyholder for your broker, or have a person designated by you do so, you should enter your own name, or the name of the person

you wish to designate, in the blank space on your voting instruction form provided to you and return the same to your broker in accor-

dance with the instructions provided by such broker (or agent), well in advance of the Meeting.

Alternatively, you can request in writing that your broker send you a legal proxy which would enable you, or a person designated by

you, to attend at the Meeting and vote your Common Shares.

Therearetwokindsofbeneficialowners:thosewhoobjecttotheirnamebeingmadeknowntotheissuersofsecuritieswhichthey

own(calledOBOsforObjectingBeneficialOwners);andthosewhodonotobjecttotheissuersofthesecuritiestheyownknowing

whotheyare(calledNOBOsforNon-ObjectingBeneficialOwners).UpuntilSeptember2002,issuers(includingthedirectorsand

officersoftheCompany)hadnoknowledgeoftheidentityofanyoftheirbeneficialownersincludingNOBOs.Subjecttotheprovision

ofNationalInstrument54-101,Communication with Beneficial Owners of Securities of Reporting Issuers (“NI54-101”),however,

afterSeptember1,2002issuerscouldrequestandobtainalistoftheirNOBOsfromintermediariesviatheirtransferagents.Prior

toSeptember1,2004issuerscouldobtainthisNOBOlistanduseitforspecificpurposesconnectedwiththeaffairsoftheCompany

exceptfor thedistributionofproxy-relatedmaterialsdirectly toNOBOs.ThiswasStageOneofthe implementationofNI54-101.

EffectiveSeptember1,2004issuerscanobtainandusethisNOBOlistfordistributionofproxy-relatedmaterialsdirectly(notvia

Broadridge)toNOBOs.ThiswasStageTwooftheimplementationofNI54-101.

TheCompanyhasdecidedtocontinuetotakeadvantageofthoseprovisionsofNI54-101thatpermit it todirectlydeliverproxy-

relatedmaterials to itsNOBOs.Asa result,NOBOscanexpect to receiveascannableVoting InstructionForm(“VIF”) fromCom-

putershare. These VIFs are to be completed and returned to Computershare in the envelope provided or by facsimile. In addition,

Computershare provides both telephone voting and internet voting as fully described on the VIF. Computershare will tabulate the

resultsoftheVIFsreceivedfromNOBOsandwillprovideappropriateinstructionsattheMeetingwithrespecttotheCommonShares

represented by the VIFs they receive.

TheseshareholdermaterialsarebeingsenttobothRegisteredShareholdersandBeneficialShareholders.IfyouareaBeneficial

Shareholder, and the Company or its agent has sent these materials directly to you, your name, address and information about your

holdings of Common Shares have been obtained in accordance with applicable securities regulatory requirements from the interme-

diary holding Common Shares on your behalf.

By choosing to send these shareholder materials to you directly, the Company (and not the intermediary holding Common Shares on

your behalf) has assumed responsibility for (i) delivering these materials to you, and (ii) executing your proper voting instructions as

specifiedintherequestforvotinginstructions.


Revocation of Proxies

In addition to revocation in any other manner permitted by law, a Registered Shareholder who has given a Proxy may revoke it by:

a) executing a Proxy bearing a later date or by executing a valid notice of revocation, either of the foregoing to be executed by the

RegisteredShareholderortheRegisteredShareholder’sauthorizedattorneyinwriting,or,iftheRegisteredShareholderisa

company,underitscorporatesealbyanofficerorattorneydulyauthorized,andbydeliveringtheProxybearingalaterdateto

ComputershareorattheheadofficeoftheCompanyatSuite2901,1050BurrardStreet,Vancouver,BritishColumbia,V6Z

2S3orattheaddressoftheCompany’sAttorneyforServiceinBritishColumbiaatSuite2600,ThreeBentallCentre,595

BurrardStreet,Vancouver,BritishColumbia,V7X1L3,atanytimeuptoandincludingthelastbusinessdaythatprecedes

the day of the Meeting or, if the Meeting is adjourned, the last business day that precedes any reconvening thereof, or to the

chairman of the Meeting on the day of the Meeting or any reconvening thereof, or in any other manner provided by law, or

b) personallyattendingtheMeetingandvotingtheRegisteredShareholder’sCommonShares.

A revocation of a Proxy will not affect a matter on which a vote is taken before the revocation.

Interest Of Certain Persons Or Companies In Matters To Be Acted UponNodirectororexecutiveofficeroftheCompany,noranypersonwhohasheldsuchapositionsincethebeginningofthelastcom-

pletedfinancialyearendoftheCompany,noranyproposednomineeforelectionasadirectoroftheCompany,noranyassociateor

affiliateoftheforegoingpersons,hasanymaterialinterest,directorindirect,bywayofbeneficialownershipofsecuritiesorother-

wise, in any matter to be acted on at the Meeting other than as set out herein.

Voting Securities And Principal Holders Of Voting SecuritiesTheboardofdirectorsoftheCompany(the“Board”)hasfixedOctober30,2009astherecorddate(the“RecordDate”)fordetermi-

nationofpersonsentitledtoreceivenoticeof,andvoteat,theMeetingandanyadjournmentthereof.OnlyRegisteredShareholders

at the close of business on the Record Date who either attend the Meeting personally or complete, sign and deliver a Proxy in the

manner and subject to the provisions described above will be entitled to vote or to have their Common Shares voted at the Meeting.

TheCompanyisauthorizedtoissueanunlimitednumberofCommonShareswithoutparvalue.AsofOctober26,2009therewere

16,809,722CommonShareswithoutparvalueissuedandoutstanding,eachcarryingtherighttoonevote.TheCompanyhasno

other classes of voting securities.

AsatthedateofthisInformationCircular,totheknowledgeofthedirectorsandexecutiveofficersoftheCompany,nooneshare-

holderbeneficiallyowns,orcontrols,directlyorindirectly,sharescarryingmorethan10%ofthevotingrightsattachedtoalloutstand-

ing shares of the Company, except as follows:

ShareholderName NumberofCommonShares(1) Percentage of Class

AlexGuidi3,148,900 18.73%

Notes:

(1)Asreportedinpublicfilings.


Quorum; Votes Necessary To Pass ResolutionsTheCompany’sArticlesprovidethataquorumforthetransactionofbusinessatanyshareholders’meetingistwoshareholdersor

proxyholders present, representing an aggregate of at least 5% of the issued Common Shares entitled to be voted at the sharehold-

ers’meeting.Ifaquorumisnotpresentwithinone-halfhourafterthetimesetforthecommencementoftheMeeting,theMeeting

will be adjourned and set over for one week to the same time and place, and thereupon whatever number of Common Shares is

represented shall constitute a quorum.

Asimplemajority(i.e.50%)ofaffirmativevotescastattheMeetingisrequiredtopasstheordinaryresolutionsdescribedherein,

whereasaspecialmajority(i.e.2/3)ofaffirmativevotescastattheMeetingisrequiredtopassthespecialresolutiondescribed

herein.IftherearemorenomineesforelectionasdirectorsorappointmentoftheCompany’sauditorthantherearevacanciesto

fill,thosenomineesreceivingthegreatestnumberofvoteswillbeelectedorappointed,asthecasemaybe,untilallsuchvacancies

havebeenfilled.Ifthenumberofnomineesforelectionorappointmentisequaltothenumberofvacanciestobefilled,allsuch

nominees will be declared elected or appointed by acclamation.

Financial StatementsTheauditedconsolidatedfinancialstatementsandtherelatedmanagementdiscussionandanalysisoftheCompanyfortheyear

endedMarch31,2009andthereportoftheauditoronthosestatementswillbeplacedbeforetheMeeting.

Theauditedconsolidatedfinancialstatementsandthereportoftheauditor,andtherelatedmanagementdiscussionandanalysis

areincludedintheAnnualReportforthefiscalyearendedMarch31,2009,whichisincorporatedbyreferenceintothisInforma-

tionCircular.Iftheshareholderhaspreviouslyrequestedacopyoftheannualfinancialstatementsandtherelatedmanagement

discussion and analysis, such Annual Report will have been mailed to the shareholder, or the shareholder will have received email

notificationthattheAnnualReportisavailablefordownloadwithoutchargefromSEDARatwww.sedar.com.

Election Of DirectorsThetermofofficeofeachofthefourcurrentdirectorswillendattheconclusionoftheMeeting.Unlessthedirector’sofficeisearlier

vacatedinaccordancewiththeprovisionsoftheBusinessCorporationsAct(BritishColumbia),eachdirectorelectedwillholdoffice

until the conclusion of the next annual meeting of the Company, or until their successor is elected or appointed.

The Board has set the number of directors to be elected at the Meeting at four. The following table sets out the names of manage-

ment’snomineesforelectionasdirectors,theirjurisdictionofresidence,theofficestheyholdwithintheCompany,theirprincipal

occupations, the period of time during which each has been a director of the Company, and the number of Common Shares of the

Companyanditssubsidiariesbeneficiallyownedbyeach,directlyorindirectly,oroverwhicheachnomineeexercisescontrolordirec-

tion, as at the date of this Information Circular.

In the absence of instructions to the contrary, Proxies given pursuant to the solicitation by the management of the Company will be

voted for the nominees listed in this Information Circular. Management does not contemplate that any of the nominees will be unable

to serve as a director.


NomineePositionwith the Company and Residence(1)

Principal Occupation(1)

Served as a Director of the

Company since

CommonSharesBeneficiallyOwnedorControlledor

Directed, Directly or Indirectly(2)

Garth Johnson

Chief Executive Officer, Chief Financial

Officer, Corporate Secretary and Director

British Columbia, Canada Company Executive April 20, 2001 15,000

John Vaccaro(3)

Director

British Columbia, Canada

Managing Partner/Consultant,

YieldManagementConsultants June11,2008 —

Dan Brown(3)(4)

Director


Corporate Accountant,

DLJManagementCorp. July20,2007 —

Giuseppe (Pino) Perone(3)(4)

Director


Lawyer,

DLJManagementCorp. July20,2007 —

Notes:

(1)Informationastoresidenceandprincipaloccupationhasbeenfurnishedbytherespectivedirectorindividually.Seealso“InformationRegardingManagement’sNomineesfor

Election to the Board” below.

(2)InformationastoCommonSharesbeneficiallyownedorcontrolledhasbeenfurnishedbytherespectivedirectorindividually.Thedirectorsdonotholdsharesinanysubsidiaryofthe

Company.

(3)DenotesmemberofAuditCommittee.

(4) Denotes member of Compensation Committee.

Biographical summaries and other required information about each of the nominees for election as directors are set out below in the

sectionentitled“InformationRegardingManagement’sNomineesforElectiontotheBoard.”

Corporate Cease Trade Orders or BankruptciesNoproposeddirectoroftheCompanyis,orwithinthetenyearspriortothedateofthisInformationCircularhasbeen,adirector,chief

executiveofficerorchieffinancialofficerofanycompany,includingtheCompany,that:

a) was the subject of a cease trade order or similar order or an order that denied the company access to any exemption under

securitieslegislationforaperiodofmorethan30consecutivedayswhiletheproposeddirectorwasactinginthatcapacity;or

b) wassubjecttoaneventthatresulted,afterthedirectorceasedtobeadirector,chiefexecutiveofficer,orchieffinancialofficer

of the company, in the Company being the subject of a cease trade order or similar order or an order that denied the relevant

companyaccesstoanyexemptionundersecuritieslegislation,foraperiodofmorethan30consecutivedaysandwhichevent

occurredwhiletheproposeddirectorwasactinginthatcapacityasdirector,chiefexecutiveofficerorchieffinancialofficer.


Noproposeddirectoris,atthedateofthisInformationCircular,orhasbeenwithin10yearspriortothedateofthisInformation

Circular,adirectororexecutiveofficerofanycompany,includingtheCompany,thatwhiletheproposeddirectorwasactinginthat

capacity or within a year of that person ceasing to act in that capacity, became bankrupt, made a proposal under any legislation

relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors or

had a receiver, receiver manager or trustee appointed to hold its assets.

Individual Bankruptcies

NoproposeddirectoroftheCompanyhas,withinthetenyearspriortothedateofthisInformationCircular,becomebankruptor

made a proposal under any legislation relating to bankruptcy or insolvency, or has been subject to or instituted any proceedings,

arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold the assets of that indi-

vidual.

InformationRegardingManagement’sNomineesforElectiontotheBoard

Thefollowingbiographicalinformationaboutmanagement’snomineesforelectiontotheBoardhasbeensuppliedbytherespective

nominees:

Mr. Garth JohnsonjoinedtheCompanyasthecorporateaccountantin1997.Mr.JohnsonisaCertifiedGeneralAccountantwithover

thirteenyearsofexperienceinexecutivemanagement,acquisitions,finance,accountingandregulatoryreportingforpubliccompa-

niesandhasbeeninstrumentalindevelopingjuniorcompaniesfromstart-uptolistingonvariousexchanges.Mr.Johnsonisalsoa

corporatebusinessexecutivethathasbeeninvolvedinoilandgasactivities,primarilyinNewZealandandPapuaNewGuinea,over

thepast12years.Currently,Mr.JohnsonistheChiefExecutiveOfficer,ChiefFinancialOfficer,CorporateSecretaryandadirectorof

theCompany.Mr.JohnsonisalsotheChiefExecutiveOfficer,PresidentandadirectorofTrans-OrientPetroleumLtd.(“Trans-Orient”).

Mr. John Vaccaro hasbeenamemberoftheBoardsinceJune11,2008.Mr.Vaccarohasover20yearsofexperienceinthefinancial

services industry where he directed and provided investment consulting to high net worth individuals as well as corporate and insti-

tutionalclients.HeactedasaseniorinvestmentexecutivewithCIBCWoodGundyfromJanuary2002toMarch2007.Mr.Vaccaro

hassinceestablishedaprivateclientconsultingpracticeinthefinancialservicessector,YieldManagementConsultants,andacts

as Managing Partner and a consultant for the practice. Mr. Vaccaro is also an active a member of the Fellowship of the Canadian

SecuritiesInstituteandholdsadegreefromtheUniversityofBritishColumbiainUrbanLandEconomicswithdoubleMajors.

Mr. Dan BrownhasbeenamemberoftheBoardsinceJuly20,2007.Mr.Brownhasbeenacontrollerintheoilandgasindustryfor

a number of years and has also provided corporate accounting services to public and private companies for more than seven years.

Mr. Brown has also been a director of certain public companies operating in the oil and gas industry.

Mr. Giuseppe (Pino) PeronehasbeenamemberoftheBoardsinceJuly20,2007.Mr.Peroneiscurrentlypracticingasacorpo-

rate lawyer for a group of public companies and has legal experience in a variety of corporate and commercial matters. Mr. Perone

obtainedaB.A.withDistinctioninSociologyfromtheUniversityofVictoriain2001andanLL.B.fromtheUniversityofAlbertain

2005,andhaspreviouslyarticledatthelawfirmofLangMichenerLLPintheirVancouver,BritishColumbiaoffice.Mr.Peroneisalso

anactivememberoftheLawSocietyofBritishColumbiaandtheCanadianBarAssociation.


All of the proposed directors are currently directors of the Company. The names of further nominees for election may come from the

floorattheMeeting.TheCompanyhasreceivednoothernominationsforelectiontotheBoardoranyothershareholders’proposal

as permitted by the Business Corporations Act (British Columbia).

The Board does not contemplate that any of its nominees will be unable to serve as a director, but if for any reason that should occur,

thepersonsnamedintheProxyshallhavetherighttousetheirdiscretiontovoteforaproperlyqualifiedsubstitute.

TheCompanyhasenteredintoanarrangementagreementwithTrans-Orient(the“ArrangementAgreement”),pursuanttowhichthe

CompanywillacquirealltheissuedandoutstandingsharesofTrans-OrientonthebasisofoneCompanyshareforeach2.8shares

ofTrans-OrientbywayofaplanofarrangementundertheBusiness Corporations Act (British Columbia) (the “Acquisition”). Following

thecompletionoftheAcquisition,Trans-Orientwillbecomeawholly-ownedsubsidiaryoftheCompany.Pursuanttothetermsofthe

Arrangement Agreement, the Board will be reconstituted following the completion of the Acquisition such that three of the members

areindividualswhoarenomineesofTrans-OrientnotalreadyontheBoard,whichnomineesareexpectedtobeRonaldBertuzzi,

MichaelHartandBarryMacNeil(the“Trans-OrientNominees”).Asaresult,itisexpectedthattheTrans-OrientNomineeswillbe

appointed to the Board and that certain of the proposed directors elected at the Meeting will resign their positions in the event the

AcquisitioniscompletedtomakeroomfortheTrans-OrientNominees.IftheAcquisitionshallnotbecompleted,itisexpectedthat

thenomineessetforthinthisInformationCircularwill,upontheirre-election,continuetoserveasdirectorsoftheCompanyuntilthe

conclusion of the next annual general meeting of the Company or until their successors are elected or nominated.

Trans-Orient plans to hold a special meeting of its shareholders to approve the Acquisition and related matters on or about

December 9, 2009. Full details of the Acquisition are included in Trans-Orient’s management information circular dated

October30,2009,whichwillbeavailableforreviewfreeofchargefromSEDARatwww.sedar.comunderTrans-Orient’sprofile.

Compensation Of Executive OfficersExecutive Compensation

Setoutbelowareparticularsofcompensationpaidtothefollowingpersons(the“NamedExecutiveOfficers”or“NEOs”):

a) theCompany’schiefexecutiveofficer(“CEO”);

b) theCompany’schieffinancialofficer(“CFO”);

c) eachoftheCompany’sthreemosthighlycompensatedexecutiveofficers,orthreemosthighlycompensatedindividualsact-

inginasimilarcapacity,otherthantheCEOandCFO,attheendofthemostrecentlycompletedfinancialyearwhosetotal

compensationwas,individually,morethan$150,000forthatfinancialyear;and

d) any additional individuals for whom disclosure would have been provided under (c) except that the individual was not serving

asanexecutiveofficeroftheCompany,noractinginasimilarcapacity,attheendofthemostrecentlycompletedfinancialyear.

AsatMarch31,2009,theendofthemostrecentlycompletedfinancialyearoftheCompany,theCompanyhadoneNamedExecutive

Officer,whosenameandpositionsheldwithintheCompanyaresetoutunder“SummaryCompensationTable.”


Compensation Discussion and Analysis

CompensationPhilosophyandObjectives

TheCompany’s executive compensation program is designed to attract,motivate and retain high performing senior executives,

encourageandrewardsuperiorperformanceandaligntheexecutives’interestswiththoseoftheCompany’sshareholders.Inorder

tomeettheCompany’sobjectives,theCompensationCommitteeisguidedby:

▪ providingexecutiveswithanequity-basedincentiveplan,namelyastockoptionplan;

▪ aligning employee compensation with company corporate objectives; and

▪ attractingandretaininghighlyqualifiedindividualsinkeypositions.

Compensation Elements

TheCompany’scompensationstructureisprimarilycomposedoftwocomponents–basesalary/bonus(consultingfees)andstock

options.

ThecompensationpayabletotheChiefExecutiveOfficerandotherexecutiveofficersisdeterminedbytheBoardaccordingtotheir

understanding as to the amount of compensation that is reasonable in the circumstances. The Board relies on objective criteria

whendeterminingexecutiveofficercompensation.ThesecriteriaincludetheattainmentoftheCompany’spre-setobjectivesforthe

previousfinancialyear,comparisonsofsalariespaidtootherexecutiveofficersintheindustryandanyadvicethatmaybegivenby

independent advisors and consultants to the Company.

Asa junior resourcecompany, stockoptiongrantsareconsideredasignificantcomponentof theCompany’soverall compensa-

tionstrategyinordertoappropriatelyincentivizetheNEOsinamannerthatisconsistentwithshareholders’interests.Optionsare

grantedtotheCompany’sexecutiveofficersunderitsShareOptionPlan.

Option-BasedAwards

TheCompanyestablishedtheShareOptionPlanonDecember19,2008inordertoattractandretaindirectors,executiveofficers

and employees, who will be motivated to work towards ensuring the success of the Company. Proposed grants are submitted to the

Boardforapproval.Priorgrantstoexecutiveofficersaretakenintoconsiderationwhenconsideringnewgrants.TheBoardadmin-

isterstheShareOptionPlanandhastheauthoritytoamendtheplan,subjecttoapplicableshareholderandregulatoryapprovals.

Summary Compensation Table

The following table is a summary of compensation paid to the NEO for the most recently completed financial year ended

March31,2009:

NameandPrincipalPosition Year Salary ($)

Share-based

awards ($)

Option-based

awards ($)(1)

Non-equity incentive plan

compensation ($)Pension

value ($)

All other compen-

sation ($)

Total compen-

sation ($)

Garth Johnson

CEO, CFO and

Corporate Secretary

Annual incentive

plans

Long-termincentive

plans

2009 175,000 — — — — — 25,000 200,000

Notes:

(1)TheCompanyusestheBlack-Scholesoptionpricingmodeltocalculatethefairvalueofoptionbasedawards.Themodelrequiressixkeyinputs:riskfreeinterestrate,exerciseprice,

market price at date of issue, expected dividend yield, expected life and expected volatility, all of which, other than the exercise price and market price, are estimates by management.


Pension Plan Benefits

TheCompanyhasnotestablishedanypensionplansfordirectorsandexecutiveofficersthatprovideforpaymentsorbenefitsat,

following, or in connection with retirement.

Incentive Plan Awards

OutstandingShare-BasedAwardsandOptions-BasedAwards

Thefollowingtablesetsouttheoption-basedawardsmadebytheCompanytotheNEOwhichwereoutstandingasatMarch31,

2009.Furtherdetailsaboutthegrantingofoptionsanddeterminationoftheirtermsarediscussedunder“Option-BasedAwards.”

Option-BasedAwards Share-BasedAwards

Name

Numberofsecurities

underlying unexercised

options (#)Optionexercise

price ($)Optionexpiration

date

Value of unexercised in-the-money

options ($)(1)

Numberofshares or units of shares that

have not vested (#)

Market or payout

value of share-basedawards that

have not vested ($)

Garth Johnson 15,000 US$3.25 May 10, 2010 — — —

20,000 $6.50 Nov.22,2010 — — —

20,000 $3.50 Aug. 2, 2011 — — —

Notes:

(1)Valueofunexercisedin-the-moneyoptionsiscalculatedbaseduponthedifferencebetweenthemarketvalueoftheCompany’scommonsharesasatMarch31,2009($0.16closing

priceontheTSXVentureExchange)andtheexercisepriceoftheOptions.

Incentive-BasedAwards–ValueVestedorEarnedDuringtheYear

NameOption-basedawards–Value

vested during the year($)(1)

Share-basedawards–Valuevested during the year ($)

Non-equityincentiveplancompensation–Valueearned

during the year ($)

Garth Johnson — — —

Notes:

(1)Alloptionsvestoveraperiodof18monthsandaregrantedatthemarketprice.

DiscussionofPlan-BasedAwards

DuringthefinancialyearendedMarch31,2009,theCompanydidnotgrantanystockoptionstoitsNEOpursuanttotheCompany’s

ShareOptionPlan.

TheBoardadministerstheCompany’sShareOptionPlan,andassuch,allproposedstockoptiongrantsaresubmittedtotheBoard

fortheirapproval.Inconsideringnewgrants,theBoardconsiderspriorgrantsmadetodirectorsandexecutiveofficers.


Termination of Employment, Change in Responsibilities and Employment Contracts

Otherthanasdisclosedbelow,therearenocontracts,agreements,orarrangements,withrespecttoanyNamedExecutiveOfficer

resultingfromtheresignation,retirementoranyotherterminationoftheNamedExecutiveOfficer’semploymentorfromachangeof

controlorfromachangeintheNamedExecutiveOfficer’sresponsibilitiesfollowingachangeincontrol.

OnSeptember1,2007,theCompanyenteredintoanexecutiveemploymentagreementwithMr.GarthJohnsontoreceiveanannual

salaryof$150,000onanon-goingbasisforhisservicesastheCompany’sChiefExecutiveOfficer,ChiefFinancialOfficerandCorpo-

rateSecretary.OnFebruary28,2008,theannualsalaryincreasedto$175,000.TheCompanymayterminatetheagreementatany

timewithoutcausebyprovidingthirtymonths’writtennoticetoMr.Johnson,payinlieuofsuchnoticeoranycombinationthereof.

Withinatwelvemonthperiodimmediatelyfollowingachangeofcontrol,theCompanyisrequiredtopayMr.Johnsonanamount

equal to his base salary for thirty months:

a) if the agreement is terminated by the Company without cause after a change of control;

b) ifMr.JohnsonisplacedinapositionoflesserstaturethanthatofPresidentandChiefExecutiveOfficer;

c) ifMr.JohnsonisassigneddutiessignificantlyinconsistentwiththepositionofChiefExecutiveOfficerimmediatelypriortothe

change of control;

d) if Mr. Johnson is assigned performance requirements or working conditions that are at variance with the performance require-

ments and working conditions in effect immediately preceding the change of control;

e) ifMr.JohnsonisaccordedtreatmentonageneralbasisthatisinderogationofhisstatusasChiefExecutiveOfficer;

f) oranyrequirementthatthelocationatwhichMr.Johnsonperformshisprincipaldutiesisoutsidearadiusoftwenty-fivemiles

from the location at which he performs such duties immediately before the change of control.

Director CompensationDirector Compensation Table

ThefollowingtableisasummaryofcompensationpaidtodirectorsoftheCompanyforthemostrecentlycompletedfinancialyear

endedMarch31,2009:

NameFees

earned ($)

Share-based

awards ($)

Option-based

awards ($)(1)

Non-equityincentive plan

compensation ($)

Pension value

($)

All othercomp-ensation ($)

Totalcomp-ensation ($)

Garth Johnson — — — — — — —

John Vaccaro $10,000 — — — — — $10,000

Dan Brown — — — — — — —

Giuseppe (Pino) Perone — — — — — — —

Notes:

(1)TheCompanyusestheBlack-Scholesoptionpricingmodeltocalculatethefairvalueofoptionbasedawards.Themodelrequiressixkeyinputs:riskfreeinterestrate,exerciseprice,

market price at date of issue, expected dividend yield, expected life and expected volatility, all of which, other than the exercise price and market price, are estimates by management.


Discussion of Director Compensation

The executive directors of the Company do not receive compensation for services provided in their capacity as directors, including

any fees for serving on the Board or committees thereof or for attending Board meetings.

Directors may be compensated from time to time for consulting services provided. The compensation payable for consulting services

is determined by the Board according to their understanding as to the amount of compensation that is reasonable in the circum-

stances.Duringthemostrecentlycompletedfinancialyear,theaggregatedirectremunerationpaidorpayablebytheCompanytoits

directorsforconsultingserviceswas$Nil.

DirectorsarealsoeligibletoreceivestockoptionsgrantedpursuanttotheCompany’sShareOptionPlan.TheBoard,asawhole,

determinesstockoptiongrantsforeachdirector.Duringthemostrecentlycompletedfinancialyear,theCompanydidnotgrantincen-

tive stock options to its directors.

TheCompanycommencedpayingMr.JohnVaccarocompensationof$1,000permonthforhisservicesasanon-executivedirector,

auditcommitteememberandinconsiderationthatnostockoptionsweregrantedtohim,effectiveJune11,2008.Mr.Vaccarowill

alsoreceivealumpsumpaymentof$5,000foradditionaldutiesasthesolespecialcommitteememberpertainingtotheCompany’s

proposed Acquisition. Further details of the Acquisition are set out above in the section entitled “Election of Directors.”

Messrs.BrownandPeronearealsoemployeesofDLJManagementCorp.(“DLJ”)thatprovidesofficespacemanagement,account-

ing and reporting services to the Company, which is described in more detail below under the heading “Interest of Informed Persons

in Material Transactions.”

OutstandingShare-BasedAwardsandOptions-BasedAwards

The following table sets out the option-based awards made by the Company to the directors which were outstanding as at

March31,2009.

Name

Numberof securities underlying

unexercisedOptions(#)Option

exercise price ($)Option

expiration dateValue of unexercised

in-the-moneyoptions($)(1)

Garth Johnson 15,000 US$3.25 May 10, 2010 —

20,000 $6.50 Nov.22,2010 —

20,000 $3.50 Aug. 2, 2011 —

John Vaccaro — — — —

Dan Brown 5,000 $3.50 Aug. 2, 2011 —

Giuseppe (Pino) Perone — — — —

Notes:

(1)Valueofunexercisedin-the-moneyoptionsiscalculatedbaseduponthedifferencebetweenthemarketvalueoftheCompany’scommonsharesasatMarch31,2009($0.16closing

priceontheTSXVentureExchange)andtheexercisepriceoftheoptions.


Incentive-BasedAwards–ValueVestedorEarnedDuringtheYear

Thefollowingtablesetsouttheaggregatedollarvaluethatwouldhavebeenrealizedbyeachdirectorifheexercised,ontheappli-

cablevestingdates,thoseoptionsheldbyhimunderoption-basedawards,whichvestedduringthemostrecentlycompletedfinan-

cial year.

NameOption-basedawards–Value

vested during the year ($)Share-basedawards–Value

vested during the year ($)

Non-equityincentiveplancompensation–Value

earned during the year ($)

Garth Johnson — — —

John Vaccaro — — —

Dan Brown — — —

Giuseppe (Pino) Perone — — —

Appointment Of AuditorThemanagementoftheCompanyintendstonominateDeVisserGrayLLP(“DeVisserGray”)ofVancouver,BritishColumbia,forre-

appointment as auditor of the Company. Proxies given pursuant to the solicitation by the management of the Company will, on any

poll,bevotedasdirectedand,ifthereisnodirection,forthere-appointmentofDeVisserGrayasauditoroftheCompanytohold

officeuntilthecloseofthenextannualgeneralmeetingoftheCompany,ataremunerationtobefixedbythedirectors.DeVisserGray

wasfirstappointedasauditoroftheCompanyonMarch17,2004.

Audit Committee And Relationship With AuditorThe Company is a “venture issuer” as that term is defined under National Instrument 52-110Audit Committee (“NI 52-110”).

NI52-110requirestheCompany,asaventureissuer,todiscloseannuallyinitsInformationCircularcertaininformationconcerning

the constitution of its audit committee and its relationship with its independent auditor, as set forth in the following.

TheAuditCommittee’sCharter

Theauditcommitteehasacharter.Acopyoftheauditcommittee’scharterisattachedtotheCompany’sInformationCirculardated

July 15, 2005, and is incorporated by reference herein and may be downloaded without charge from SEDAR at www.sedar.com.

Composition of the Audit Committee

TheCompanyisrequiredundertherulesoftheTSXVentureExchange(“TSX-V”)tohaveanauditcommitteecomprisedofnotless

thanthreedirectors,amajorityofwhomarenotofficers,controlpersonsoremployeesoftheCompanyoranaffiliateoftheCompany.

TheCompany’scurrentmembersoftheauditcommitteeareMessrs.JohnVaccaro,DanBrownandGiuseppe(Pino)Perone.

TheCompanyisrequiredtodisclosewhetherthemembersofitsauditcommitteeare“independent”and“financiallyliterate”within

themeaningofNI52-110.

NI52-110providesthatamemberofanauditcommitteeis“independent”ifthememberhasnodirectorindirectmaterialrelation-

shipwiththeCompany,whichcouldintheviewoftheBoard,reasonablyinterferewiththeexerciseofthemember’sindependent

judgment.Mr.VaccaroisindependentwithinthemeaningNI52-110.Messrs.BrownandPeronearenotindependentwithinthe

meaningNI52-110becausetheyareemployeesofDLJthatprovidesofficespacemanagement,accountingandreportingservices

to the Company, which is described in more detail below under the heading “Interest of Informed Persons in Material Transactions.”


NI52-110providesthatanindividualis“financiallyliterate”ifheorshehastheabilitytoreadandunderstandasetoffinancial

statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and

complexityoftheissuesthatcanreasonablybeexpectedtoberaisedbytheCompany’sfinancialstatements.Allmembersofthe

auditcommitteeareconsideredtobe“financiallyliterate”inthecontextoftheCompany’soperations.

AuditCommitteeOversight

TheauditcommitteehasnotmadeanyspecificrecommendationstotheBoardtonominateorcompensateanyexternalauditor.

Relevant Education and Experience

Relevant information regarding the education and experience of the members of the audit committee is set out above in the section

entitled“InformationRegardingManagement’sNomineesforElectiontotheBoard.”

Reliance on Certain Exemptions

SincethecommencementoftheCompany’smostrecentlycompletedfinancialyear,theCompanyhasnotreliedon:

a) theexemptioninSection2.4(DeMinimisNon-auditServices)ofNI52-110;or

b) anexemptionfromNI52-110,inwholeorinpart,grantedunderPart8(Exemptions)ofNI52-110.

Pre-ApprovalPoliciesandProcedures

Theauditcommitteehasnotadoptedspecificpoliciesandproceduresfortheengagementofnon-auditservices.

External Auditor Service Fees

Theauditcommitteehasreviewedthenatureandamountofthenon-auditedservicesprovidedbyDeVisserGrayandtheCompany’s

NewZealandauditorBDOSpicers,CharteredAccountantsandAdvisors (“BDOSpicers”), toensureauditor independence.Fees

incurredwithDeVisserGrayandBDOSpicersforauditandnon-auditservicesinthelasttwofiscalyearsforauditfeesareoutlined

in the following table:

NatureofServicesFees Paid to Auditor in

YearEndedMarch31,2008Fees Paid to Auditor in

YearEndedMarch31,2009

Audit Fees (1) $42,104 $36,196

Audit-RelatedFees(2) $7,674 $788

Tax Fees (3) $2,000 $2,000

AllOtherFees(4) — —

Total $51,778 $38,984

Notes:

1) “AuditFees”includefeesnecessarytoperformtheannualauditandquarterlyreviewsoftheCompany’sconsolidatedfinancialstatementsandincludeboththefeesofthe

Company’sprincipalauditor,DeVisserGray,andBDOSpicers.Auditfeesalsoincludefeesforreviewoftaxprovisionsandforaccountingconsultationsonmattersreflectedinthe

financialstatements.AuditFeesalsoincludeauditorotherattestservicesrequiredbylegislationorregulation,suchascomfortletters,consents,reviewsofsecuritiesfilingsand

statutory audits.

2) “Audit-RelatedFees”includeservicesthataretraditionallyperformedbytheauditor.Theseaudit-relatedservicesincludeemployeebenefitaudits,duediligenceassistance,

accounting consultations on proposed transactions, internal control reviews and audit or attest services not required by legislation or regulation.

3) “TaxFees”includefeesforalltaxservicesotherthanthoseincludedin“AuditFees”and“Audit-RelatedFees.”Thiscategoryincludesfeesfortaxcompliance,taxplanningandtax

advice. Tax planning and tax advice includes assistance with tax audits and appeals, tax advice related to mergers and acquisitions, and requests for rulings or technical advice from

tax authorities.

4) “AllOtherFees”includeallothernon-auditservices.


Exemption

TheCompanyisrelyingontheexemptionprovidedbysection6.1ofNI52-110whichprovidesthattheCompany,asaventureissuer,

isnotrequiredtocomplywithPart3(CompositionoftheAuditCommittee)andPart5(ReportingObligations)ofNI52-110.

Corporate Governance DisclosureGeneral

EffectiveJune30,2005,National Instrument58-101DisclosureofCorporateGovernancePractices (“NI58-101”)andNational

Policy58-201CorporateGovernanceGuidelines(“NP58-201”)wereadoptedineachoftheprovincesandterritoriesofCanada.

NI58-101requires issuerstodisclosethecorporategovernancepracticeswithrespect tocorporategovernanceguidelines(the

“Guidelines”)thattheyhaveadopted.NP58-201providesguidanceoncorporategovernancepractices.

TheBoardunderstandsthatgoodcorporategovernanceimprovescorporateperformanceandbenefitsallshareholders.Thissection

setsouttheCompany’sapproachtocorporategovernanceandaddressestheCompany’scompliancewithNI58-101.

1. Board of Directors

Directors are considered to be independent if they have no direct or indirect material relationship with the Company. A “material

relationship”isarelationshipwhichcould,intheviewoftheCompany’sBoard,bereasonablyexpectedtointerferewiththeexercise

ofadirector’sindependentjudgmentandincludestheholdingofanexecutiveofficerposition.

TheBoardfacilitates its independentsupervisionovermanagementbyconductingaquarterlyreviewoftheCompany’sfinancial

statements and management discussion and analysis as well as requiring material transactions to be approved by the Board prior

to the transaction taking place.

The independent member of the Board is Mr. John Vaccaro. Mr. Garth Johnson is not an independent member of the Board, as Mr.

JohnsonisthecurrentChiefExecutiveOfficer,ChiefFinancialOfficerandCorporateSecretaryoftheCompany.Messrs.DanBrown

andGiuseppe(Pino)PeronearenotclassifiedasindependentmembersoftheBoardastheiremployer,DLJ,providesofficespace

management, accounting and reporting services to the Company on a consulting basis.

2. Directorships

Mr.GarthJohnsonwasappointedasthePresidentofTrans-OrientonJanuary10,2008,andasChiefExecutiveOfficeranddirector

ofTrans-OrientonMarch13,2008.

3. OrientationandContinuingEducation

The Board provides ad hoc orientation for new directors. Continuing education opportunities are available to Board members as

requested.Onoccasionswhereitisconsideredadvisable,theBoardwillprovidedirectorswithinformationregardingtopicsofgen-

eralinterest,suchasfiduciarydutiesandcontinuousdisclosureobligations.TheBoardalsoensuresthateachdirectorisup-to-date

withcurrentinformationregardingthebusinessoftheCompany,therolethedirectorisexpectedtofulfillandbasicproceduresand

operations of the Board. Board members are also given access to management and other employees and advisors, who can answer

any questions that may arise. Management also updates the Board concerning the status of the Company and, in respect of mate-

rialtransactions,includingreviewoffinancialstatements,providesopportunitiesforBoardreviewandapprovalbywayofdirectors’

consent resolutions.


4. Ethical Business Conduct

TheBoardisoftheviewthatthefiduciarydutiesplacedonindividualdirectorsbytheCompany’sgoverningcorporatelegislationand

thecommonlawandtherestrictionsplacedbyapplicablecorporatelegislationonanindividualdirector’sparticipationindecisions

oftheBoardinwhichthedirectorhasaninteresthavebeensufficienttoensurethattheBoardoperatesreasonablyindependentlyof

managementandinthebestinterestsoftheCompany.Nevertheless,theCompanyhasadoptedaformalwrittencodeofethics(the

“CodeofEthics”),whichsetsouttheethicalandbehaviouralstandardsexpectedoftheCompany’sdirectors,officers,employees

andcontractors.Thesestandardsincludeintegrityandobjectivity,fairdealingandduecare,properuseoftheCompany’sassets,

property and information and compliance with applicable laws, regulations and rules. The Company will provide a copy of the Code of

Ethics,freeofcharge,uponrequesttotheCompany(telephonenumber:(604)609-3350;faxnumber:(604)682-1174).

5. NominationofDirectors

TheBoardhasnotadoptedaformalprocessfornominatingnewdirectors.TheBoardconsidersitssizeeachyearwhenitconsiders

the number of directors to recommend to the shareholders for election at the annual meeting of shareholders, taking into account

thenumberrequiredtocarryouttheBoard’sdutieseffectivelyandtomaintainadiversityofviewsandexperience.

The Board does not have a nominating committee, and these functions are currently performed by the Board as a whole. However, if

thereisasignificantincreaseinthenumberofdirectorsrequiredbytheCompany,thispolicywillbereviewed.

6. Compensation

AsofOctober26,2009thecompensationcommitteeconsistsofMessrs.DanBrown(chairman)andGiuseppe(Pino)Perone,and

nomemberisanofficeroremployeeoftheCompanyoranyofitssubsidiaries.Thecompensationcommitteehasacharterthat

mandates it to recommend to the Board the form and amount of compensation paid by the Company to directors for service on the

BoardandonBoardcommitteesandtorecommendthestructureoftheCompany’scompensationprograms,bothformanagement

andstaff,includingbasesalaries,perquisitesandlongandshort-termincentivecompensation,includingstockoptions.Thecom-

pensationcommitteeisalsomandatedtoreviewtheperformanceoftheChiefExecutiveOfficerandChiefFinancialOfficer.Acopy

ofthecompensationcommittee’scharterisattachedtotheCompany’sAnnualReportonForm20-FdatedMarch31,2006,andis

incorporated by reference herein and may be downloaded without charge from SEDAR at www.sedar.com.

7. OtherBoardCommittees

TheBoardhasnocommitteesotherthantheauditandcompensationcommittees.InlightoftheCompany’smodestcapitalization

andsmallBoardsizeitconsidersthistobereasonable.

8. Assessments

The Board monitors the adequacy of information given to directors, communication between the Board and management and the

strategic direction and processes of the Board.


Securities Authorized For Issuance Under Equity Compensation PlansTheCompanyhasnocompensationplansunderwhichequitysecuritiesareauthorized for issuance,except for theshareholder

approvedShareOptionPlanincorporatedbyreferencetotheInformationCirculardatedDecember19,2008.AsatMarch31,2009,

there are no share purchase warrants outstanding.

Equity Compensation Plan Information

ThefollowingtablesetsouttheequitycompensationplaninformationasofMarch31,2009:

Numberofsecuritiestobeissued upon exercise of

outstanding options, warrants and rights

Weighted-averageexercisepriceof outstanding options, warrants

and rights

Numberofsecuritiesremainingavailable for future issuance under equity compensation plans (excluding securities

reflectedincolumn(a))Plan Category (a) (b) (c)

Equity compensation

plans approved by

securityholders 222,000 $3.78 1,458,972

Equity compensation

plans not approved by

securityholders — — —

Total 222,000 $3.78 1,458,972

Indebtedness Of Directors And Executive OfficersNodirector,proposednomineeforelectionasdirector,executiveofficerortheirrespectiveassociatesoraffiliates,othermanage-

mentoftheCompany,employees,orformerexecutiveofficers,directorsoremployeeswereindebtedtotheCompanyoritssubsidiar-

iesasattheendofthemostrecentlycompletedfinancialyearorasatthedatehereof.

Interest Of Informed Persons In Material TransactionsAninformedpersonisonewho,generallyspeaking,isadirectororofficerora10%shareholderoftheCompany.Totheknowledge

of management of the Company, no informed person or nominee for election as a director of the Company or a subsidiary of the

Companyoranyassociateoraffiliateofanyinformedpersonorproposeddirectorhadanymaterialinterest,directlyorindirectly,in

any transaction or proposed transaction which has materially affected or would materially affect the Company or any of its subsidiar-

iesduringtheyearendedMarch31,2009,orhasanyinterestinanymaterialtransactioninthecurrentyearotherthanassetout

below or elsewhere in this Information Circular.

OnNovember1,2008theCompanyenteredintoaconsultingagreementwithDLJunderwhichDLJreceivesmonthlycompensation

of$2,750forrentalofcorporateofficespaceplustheCompany’spro-ratashareofallothermonthlygeneralandadministrative

coststhatDLJincursforaperiodoftwoyears(the“ConsultingAgreement”).TheConsultingAgreementrelatestotheprovisionof

officespacemanagement,accountingandreportingservicestotheCompany.PursuanttoanaddendumoftheConsultingAgree-

mentdatedJune1,2009,DLJ’smonthlycompensationfromtheCompanyforrentalofcorporateofficespacewasincreasedto


$3,000.DLJisa100%ownedsubsidiaryofTrans-Orientthatprovidesofficespacemanagement,accountingandreportingservices

topublicandprivatecompaniesonafixedandcostrecoverybasis.Mr.DanBrownholdsacorporateaccountingrolewithDLJand

Mr.Giuseppe(Pino)PeroneholdsapositionwithDLJaslegalcounsel.AcopyoftheConsultingAgreementisavailablefordownload

without charge from SEDAR at www.sedar.com.

Management ContractsManagement functions of the Company and its subsidiaries are not, to any material degree, performed by anyone other than direc-

torsorNamedExecutiveOfficersoftheCompany.

Particulars Of Special Matters To Be Acted Upon ApprovaloftheShareOptionPlan

AttheCompany’sannualgeneralmeetingonDecember19,2008,theCompany’sshareholdersre-approvedtheCompany’sShare

OptionPlaninwhichthenumberofCommonSharesreservedforissuanceasshareincentiveoptionsisequalto10%oftheCom-

pany’sissuedandoutstandingCommonSharesatanytime.Thisisconstitutedasa“rolling”asopposedtoa“fixednumber”plan.

AnypreviouslygrantedoptionsaregovernedbytheShareOptionPlan,andifanyoptionsgrantedexpireorterminateforanyreason

withouthavingbeenexercisedinfull,theunpurchasedCommonShareswillagainbeavailableundertheShareOptionPlan.

Atpresent,theCompanyhas16,809,722CommonSharesissuedandoutstanding.Thismeansthat1,680,972CommonSharesare

currentlyavailableforoptionsgrantedundertheShareOptionPlanatthedatehereof.Asaresult,thenumberofoptionscurrently

outstandingis222,000,andthenumberavailableforgrantis1,458,972.

PursuanttothepoliciesoftheTSX-Vgoverningshareoptions,theShareOptionPlanmustbere-affirmedannuallybyshareholders

andanyamendmentofitmustbeapprovedbytheTSX-Vandbyshareholders.TheBoarddoesnotproposeanyamendmentstothe

ShareOptionPlan,anditistheresponsibilityoftheBoardtoensurethattheprovisionsoftheShareOptionPlanareadheredto.

TheoptionsundertheShareOptionPlanarenon-assignableandnon-transferable,andhaveatermofupto5years,terminating

within 90 days after the optionee ceases to be associated with the Company. Any previously granted options are governed by the

ShareOptionPlan,andifanyoptionsgrantedexpireorterminateforanyreasonwithouthavingbeenexercisedinfull,theunpur-

chasedCommonShareswillagainbeavailableundertheShareOptionPlan.Theexercisepriceswillbeestablishedatthetimethe

optionsaregranted,whichissubjecttoaminimumexercisepriceofnotlessthantheDiscountedMarketPriceasdefinedinthe

policiesoftheTSX-V.TheoptionsundertheShareOptionPlanmaybesubjecttovestingprovisionsasrequiredbythepoliciesof

theTSX-V,ifapplicable,andasmayotherwisebedeterminedbytheBoard.TheShareOptionPlanmustbere-affirmedannuallyby

shareholdersandanyamendmentofitmustbeapprovedbytheTSX-Vandbyshareholders.

AcopyoftheShareOptionPlanwillbeavailableforinspectionattheMeeting,andmaybedownloadedwithoutchargefromSEDAR

at www.sedar.com.


Recommendation

Inordertocontinuetoprovideincentivetodirectors,officers,employees,managementandotherswhoprovideservicestothe

Company to act in the best interests of the Company, management of the Company recommend that shareholders approve the

belowresolution(the“OptionResolution”)re-adoptingtheShareOptionPlan.

AttheMeeting,shareholderswillbeaskedtoconsiderandifthoughtfittopass,withorwithoutvariation,anordinaryresolution

as follows:

“ResolvedthattheCompanyapprovethecontinuationofitsexistingShareOptionPlan,whichistoremainineffectuntil

furtherratificationisrequiredunderapplicableregulatoryapproval.”

TheBoardrecommendsthat theshareholdersvote in favourof theOptionResolution.Unlesssuchauthority iswithheld, the

personsnamedintheenclosedProxyintendtovoteFORtheapprovaloftheOptionResolution.

Other MattersThe Board is not aware of any other matters which they anticipate will come before the Meeting as of the date of mailing of

this Information Circular. If any other matters properly come before the Meeting, the Common Shares represented by the Proxy

solicited hereby will be voted on such matters in accordance with the best judgment of the persons voting the Proxy, subject to

instructions on the face of the Proxy to the contrary.

Additional InformationFinancialinformationisprovidedintheCompany’scomparativefinancialstatementsandmanagementdiscussionandanalysis

foritsmostrecentlycompletedfinancialyear.AdditionalinformationisalsoavailableonSEDARatwww.sedar.com and may be

downloaded free of charge.

TheCompanywillprovidetoanyshareholder,freeofcharge,uponrequesttotheCompany,telephonenumber(604)609-3350

orfaxnumber(604)682-1174,acopyofanyyearendandinterimfinancialstatementsoftheCompanyfiledwiththeapplicable

securities regulatory authorities during the past two years.

Shareholder ProposalsPursuant to Canadian law, shareholder proposals to be considered for inclusion in the Information Circular for the 2010 annual

meeting of the Company (expected to be held in December 2010) must be received by the Company on or before the close of

businessonSeptember17,2010.

Board ApprovalThe contents of this Information Circular and its distribution to shareholders have been approved by the Board.

DATEDatVancouver,BritishColumbiaOctober26,2009.

Garth Johnson

ChiefExecutiveOfficer

Corporate Office2901-1050BurrardStreetVancouver, British ColumbiaV6Z2S3Canada

Phone(604)609-3350Fax(604)682-1174

Technical Headquarters233BroadwayP.O.Box262Stratford4332Taranaki,NewZealand

Phone(06)765-6643Fax(06)765-6654

prin

ted

in C

anad

a

www.tagoil.com

Document

Documents

notice of meeting

annual meeting matters

attached information

suitable form of proxy

enclosed form of proxy

shareholders shares

accompanying notice

bc canadanotice of annual