Conversion to Corporation

As a result of reorganization effective June 11, 2010, Deepwell Energy Services Trust (“Deepwell” or the “Trust”) was converted from an open-ended unincorporated investment trust into Palko Environmental Ltd., a newly incorporated company. The Company’s shares were listed for trading on the Toronto Stock Exchange on June 16, 2010. For each trust unit held, the Trust’s unitholders received one common share in Palko which holds the assets and liabilities previously held, directly or indirectly, by the Trust. In conjunction with the Arrangement, Palko acquired the remaining 50% ownership in Palko Energy Ltd. (“Palko Energy”) on June 30, 2010. Dispositions of shares of Palko that originated as Deepwell will require an ACB calculation.