Fortress Annual General Meeting - August 25th, 2010

1. Annual General Meeting and Special Meeting of Shareholders August 25th, 2010

2. Agenda Rational for the Sale of Assets Review of Fortress Strategy North American Natural Gas Markets What Next

3. Fortress Business Strategy • Natural Gas Focus • High Working Interest • Concentrated Ownership • Operated Production • Mix of Development and Exploration Assets • Low Finding and Development Costs • Low Operating Costs • $6.00 per mcf • Financial Flexibility

4. Ladyfern Area Today…… Exploitation & Exploration Avg. WI 83%, Operated 40 Development Location Acquisition and Operating efficiencies • Avg. FEI Production 9.9 mmcf/d • Total FEI Reserves 43 Bcf • Total FEI Land (undev.) 85,000 net acres Acquire and Exploit

5. 100% WI Fortress Operated Discovered by Fortress in 2007 Developed and on-stream in 2008/09 Production Well Capability – >9.0 mmcf/d Recoverable Reserves -24.2 bcf F&D Costs – $0.95/mcf R9W6 T94 T93 NOTIKEWIN LOCATIONS Square Creek – Exploration and Development

6. Natural Gas – Fortress’ History of Market Timing

7. AECO Natural Gas Prices – Forward Strip

8. US Natural Gas Directed Rig Count – Supply? • Natural gas directed drilling activity has been flat for the past 16 weeks • HZ drilling activity in Shale plays continue to provide increasing production. • Although activity has flattened out – supply continues to increase. Source: Baker Hughes

9. US Natural Gas Production – Increasing USProduction • US Production is increasing with HZ drilling activity focused on Shale Plays • Supply Comparison • 2010 Year to date 56.7 bcf/d • 2009 Year to date 56.7 bcf/d • 2010 July Average. 57.8 bcf/d Source: Bentek

10. Canadian Gas Export to the United States • Canadian Gas Exports tracking 2009 levels • Canadian Exports year to date: • + 0.2 bcf/d over 2009 • -1.7 bcf/d under 5 yr average • Expect Canadian Exports to be approximately the same as 2009. Source: Bentek

11. LNG – Surplus Supply • Qatar Gas has reduced output by 66% until prices improve • Delivery of LNG tankers intentionally slowed to reduced landed supplies • LNG is being diverted to higher priced European and Asian markets • LNG Exports Year to Date: • + 0.1 bcf/d over 2009 • - 0.3 bcf/d under 5 yr average • Expect the Rest of Year LNG supply to be the same as 2009. Source: Bentek

12. Power Demand – Weather • Power Demand has been strong and likely to continue • Low prices and recent hot weather has resulted in strong power burn • Power Demand: • Year to date + 1.7 bcf over 2009 • 2010 July Power Burn 3.8 bcf/d above 2009 levels • Expect rest of year Power Burn to be + 1.1 bcf/d over 2009 Source: Bentek 2009

13. Demand – Industrial Demand • Industrial Demand is seasonally weak • Industrial Demand has not yet recovered from recessionary lows • Industrial Demand: • + 0.6 bcf/d over 2009 • - 0.5 bcf/d under 5 yr average • Expect Rest of Year – same as 2009 Source: Bentek 2010

14. Residential/ Commercial Demand Notwithstanding hot weather, demand is tracking 2009 + 0.1 bcf/d over 2009 +0.1 bcf/d over 5 yr average Expect Rest of year – same as 2009

15. Natural Gas Inventories – Looking like 2009 Source: EIA

16. Change in Natural Gas Inventory – Supply/Demand Balance Inventories are being affected most by anomalous weather Source: EIA

17. US Production Forecast – 954 Gas Rigs - Flat

18. Forecast Inventories - Full in Fall 2010 • Very likely full inventories at the end of injection season • Assumes: • Flat Production • Industrial and Residential Demand flat • Power Demand 3.0 bcf/d above five year average.

19. Terra Transaction Summary

20. Fortress - Remaining Assets

21. Next Steps • Re- Capitalization Transaction • New Management Team • New Corporate Strategy • Advantages of Fortress • Surplus Unused Tax Pools $50 million • Cash in the Bank • Producing Resource Properties • TSX Listing