• Showed positive sales growth in Mexico. Both pipe and third party projects have contributed immensely to the growth in the Mexican market. Approximately 50 per cent of the Terra 114 project was completed to March 31, 2012, with 90 per cent complete at today's date. It is anticipated that the expanded project will be completed by June 15, 2012;
• Starting in May, 2011, with the delivery of its first flexible pipe project, the corporation completed a total of 33.7 kilometres of deliveries to March 31, 2012. The first quarter resulted in 6.6 km of deliveries with an additional 8.8 km being delivered in late May;
• CBM showed a drop in sales in the pump business, primarily attributable to low gas prices. Alternative market opportunities are being addressed by management in regard to a continuing restructuring of the business, including product supply, and sales and marketing initiatives;
• Completed the placement in first quarter 2012 of $2-million of 12-per-cent debentures and on April 23, 2012, completed the close of an additional $511,000 of 12-per-cent debentures totalling $2,511,000. In addition, a short-term loan for $700,000 was attained to assist in the expanded scope and size for the Terra 114 construction project. The short-term loan is scheduled to be repaid by June 15, 2012;
• Continued to assess opportunities for expanded business in the United States and Mexico.

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SUMMARY QUARTERLY DATA                                                      
(all amounts are presented in Canadian                                      
 dollars)                                                                   
                                                                            
For the three months ended, and as at, March                                
 31                                                     2012           2011 
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Average sales volumes of natural gas (Mcf/d)           1,934          1,917 
Average sales price of natural gas ($/Mcf)     $        2.11  $        3.35 
Natural gas sales, before royalties            $     372,252  $     407,013 
Operating netbacks, after royalty credits                                   
 applied                                       $      87,174  $     364,631 
Cash flow from operating activities            $    (271,242) $     (64,335)
Net loss and comprehensive loss                $    (942,567) $    (702,752)
Loss per share, basic & diluted                $       (0.01) $       (0.01)
Net working capital                            $   1,885,895  $  18,176,642 
Total assets                                   $  62,118,639  $  77,574,080 
Shareholders' capital                          $  58,554,046  $  74,900,078 
Common shares outstanding                         76,238,661     74,561,061 
Total capital expenditures                     $     359,732  $   2,761,743