CLERK OF LEDTHE COURTFI

COURT FILE NUMBER

COURT

JUDICIAL CENTRE

APPLICANT

RESPONDENT

DOCUMENT

1601-01680

JUN 1 it 2016

CALGARY, ALBERTA

COURT OF QUEEN'S BENCH OF ALBERTA

CALGARY

PANASIA INVESTMENTS LTD.

DETECTOR EXPLORATION LTD.

APPLICATION FOR APPROVAL AND VESTINGORDER AND SEALING ORDER

ADDRESS FOR SERVICE AND CONTACT Peter S. Jull, Q. C.I NFORMATION OF PARTY FILING THIS DLA Piper (Canada) LLPDOCUMENT Barristers and Solicitors

1000, 250 - 2 Street SWCalgary, Alberta T2P 0C1Phone: 403-776-8811Fax: 403-296-4474File No.: 76971-00009

NOTICE TO RESPONDENT(S)

This application is made against you. You are a respondent.

You have the right to state your side of this matter before the Judge.

To do so, you must be in Court when the application is heard as shown below:

Date June 21, 2016

Time 10:00 AM

Where Calgary Courts Centre

Before Whom The Honourable Justice Eidsvik

Go to the end of this document to see what else you can do and when you must do it.

CAN: 21692719.2

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Remedy claimed or sought:

Hardy & Kelly Inc. (the "Receiver"), in its capacity as receiver and manager of the current and

future assets, undertakings and properties (collectively, the "Property") of Detector Exploration

Ltd. (the "Debtor") pursuant to the Order issued by the Honourable Justice J. Strekaf on

February 22, 2016 (the "Receivership Order") applies for orders, substantially in the form

attached as Schedule "A" and Schedule "B" hereto:

2. Declaring that service of this Application (the "Application") and the First Report of the Receiver,

dated June 14, 2016 (the "First Receiver's Report") on the persons listed in Appendix "A" to the

Application (the "Service List") is good and sufficient and that no persons other than those on the

Service List are entitled to service of the First Receiver's Report or the Application;

3. Sealing the Confidential Receiver's Report (the "Confidential Report") on the Court file for a

period of ninety (90) days from the date of any order granted on the Application;

4. Declaring that the security interest granted by the Debtor to Panasia Investments Ltd., Kevin J.

Keenan and Kim Keenan, Foxwood Inc., and Ronald E. Anderson, and assigned to 1939924

Alberta Ltd. ("1949") is valid and enforceable and it is appropriate for the Receiver to accept a

credit bid from 1949 on the strength of that Security;

5. Approving the transaction of purchase and sale between 1949924 and the Debtor (the "1949

Purchase Agreement") for the sale and transfer of assets from the Debtor to 1949, directing and

authorizing the Receiver, for and on behalf of the Debtor, to execute and deliver the 1949

Purchase Agreement to 1949 and to take such steps as the Receiver determines necessary or

advisable to close the transaction for the purchase and sale of the assets contemplated by the

1949 Purchase Agreement; and

6. Ordering and declaring that service of any orders arising from the Application by email, facsimile,

registered mail, courier, regular mail, or personal delivery to the persons listed on the Service List

shall constitute good and sufficient service of such orders and that no persons other than those

on the Service List are entitled to be served with a copy of such orders.

7. Such further and other relief as counsel for the Receiver may advise.

Grounds for the Application:

8. The Receiver was appointed as receiver and manager of the Property pursuant to the

Receivership Order. The Receiver is empowered and authorized to sell the Property with the

CAN: 21692719.2

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approval of this Honourable Court in accordance with the Sale and Solicitation process outlined in

Schedule "B" to the Receivership Order (the "SSP").

9. The Receiver has determined in its business judgment that the 1949 Purchase Agreement is the

highest and the best bid. The 1949 Purchase Agreement is conditional, inter alia, on Court

approval.

10. The Receiver has marketed the Properties in accordance with the SSP and the Property being

conveyed pursuant to the Purchase Agreement was sufficiently exposed to the relevant market in

a commercially reasonable and fair marketing process. The price to be paid for the Property

being sold pursuant to the Purchase Agreement represents the highest and best price that can be

obtained for the Property in the circumstances and the Purchase Agreement, as proposed, are in

the best interests of the estate of the Debtor and the stakeholders of the Debtor.

1 1. The Receiver has provided information on the sales and marketing process and the price to be

paid pursuant to the Purchase Agreement in the Confidential Report. The public disclosure and

dissemination of the information in the Confidential Report would cause serious and irreparable

harm to the estate of the Debtor and its stakeholders in the event that either of the Purchase

Agreement failed to close and the Receiver was forced to remarket the assets to the general

public. The limited, ninety day sealing provision that the Receiver seeks on the Application in

respect of the Confidential Report is a fair and reasonable method of addressing the serious and

irreparable harm that would result if the Confidential Report was publically disseminated.

12. The Receiver's legal counsel has reviewed the security granted by the Debtor and has provided

an opinion that, subject to the standard and customary qualifications, assumptions and

limitations, the security held by 1949 over the assets, property and undertakings is valid and

enforceable. It is therefore appropriate to utilize the credit bid of 1949 to purchase the Property

subject only to the charges in priority to the security in the Receivership Order and any assumed

charges.

13. Such further and other grounds as counsel for the Receiver may advise.

Material or Evidence to be relied On: The Receiver will rely on the following material:

14. The First Receiver's Report and the Confidential Report;

15. Such further and other material as counsel for the Receiver may advise.

Applicable rules:

16. Rule 6.3(1) and 6.9(1) of Rules.

CAN: 21692719.2

-4

17. Such further and other rules as counsel for the Receiver may advise.

Applicable Acts and Regulations:

18. Section 243 of the BIA.

19. Such further and other acts and regulations as counsel for the Receiver may advise.

Any irregularity complained of or objection relied on:

20. There are no irregularities complained of or objections relied on.

How the application is proposed to be heard or considered:

21. The Receiver proposes that the Application be heard in person with one, some or all of theparties present.

WARNING

If you do not come to Court either in person or by your lawyer, the Court may give the applicant(s) whatthey want in your absence. You will be bound by any order that the Court makes. If you want to take partin this application, you or your lawyer must attend in Court on the date and at the time shown at thebeginning of the form. If you intend to rely on an affidavit or other evidence when the application is heardor considered, you must reply by giving reasonable notice of the material to the applicant.

CAN: 21692719.2

APPENDIX "A"

CQB Action No. 1601-01680Panasia Investments Ltd. v. Detector Exploration Ltd.

SERVICE LISTLast Updated on June-14-2016

Parties Contact Information Counsel for

Burnet, Duckworth & Palmer LLP1400, 525 - 8 Avenue SWCalgary, AB T2P 1G1

Attention: Trevor Batty

tbatty@bdplaw.com Panasia Investments Ltd.

Brazeau CountyPO Box 77, 7401-TWP RD 494Drayton Valley, AB T7A 1R1

Fax: 780-542-7770

Detector Exploration Ltd.650, 520 - 5 Avenue SWCalgary, AB T2P 3R7

Attention: Ronald Alexander

detectorex©shaw.ca

DLA Piper (Canada) LLP1000, 250 - 2 Street SWCalgary, AB T2P 0C1

Attention: Peter Jull, Q.C.

peterfull©dlapipercom Hardie & Kelly Inc.Receiver

Hardie & Kelly Inc.1 10, 5800 - 2 Street SWCalgary, AB T2H OH2

Attention: Marc Kelly

mkelly©insolvency.net

Miles Davison LLP900, 517 - 10 Avenue SWCalgary, AB T2R OAS

Attention: Terry Czechowskyj

tczech@milesdavison.com Alberta Energy Regulator

PrairieSky Royalty Ltd.1700, 350 - 7 Avenue SWCalgary, AB T2P 3N9

Attention Jennifer Martin

Jennifer.Martin prairiesky.corn

Yellowhead County2716 - 1 AvenueEdson, AB T7E 1N9

Attention: D. Simon

dsimon vellowheadcounty.ab.ca

CAN: 21343996.1

SCHEDULE "A"

COURT FILE NUMBER 1601-01680

COURT COURT OF QUEEN'S BENCH OF ALBERTA

JUDICIAL CENTRE CALGARY

APPLICANT PANASIA INVESTMENTS LTD.

RESPONDENT DETECTOR EXPLORATION LTD.

DOCUMENT ORDER (SERVICE, SEALING AND DISTRIBUTION

ADDRESS FOR SERVICE AND CONTACT Peter S. Jull, Q. C.I NFORMATION OF PARTY FILING THIS DLA Piper (Canada) LLPDOCUMENT Barristers and Solicitors

1000, 250 - 2 Street SWCalgary, Alberta T2P 0C1Phone: 403-776-8811Fax: 403-296-4474File No.: 76971-00009

DATE ON WHICH ORDER WAS PRONOUNCED: June 21, 2016

NAME OF JUSTICE WHO MADE THIS ORDER: The Honourable Justice Eidsvik

LOCATION OF HEARING: Calgary, Alberta

UPON the application of Hardie & Kelly Inc., in its capacity as Court appointed receiver and

manager ("Receiver") of the assets, properties and undertakings (the "Property") of Detector Exploration

Ltd. (the "Debtor") pursuant to an order issued in the within proceedings on February 22, 2016 (the

"Receivership Order"); AND UPON having read the Application and the First Report of the Receiver,

dated June 14, 2016 (the "Receiver's Report"); AND UPON having read the Confidential Report dated

June 14, 2016 ("the Confidential Report") AND UPON having read the Affidavit of Service of Kim Nutt

sworn , 2016 (the "Service Affidavit"); AND UPON hearing counsel for the Receiver and

any other counsel present;

IT IS HEREBY ORDERED AND DECLARED THAT:

CAN: 21692719.2

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1. Service of the Notice of Application in respect of this Order (the "Application") and the First

Receiver's Report in the manner described in the Service Affidavit is hereby declared to be good

and sufficient, and no other persons are entitled to be served with or given notice of the

Application or served with a copy of the First Receiver's Report.

2. Division 4 of Part 6 of the Rules does not apply to the Application. The Confidential Report shall

be sealed on the Court file and shall not be made publically accessible until after November 4,

2014. The Clerk of the Court be and is hereby directed to seal the Confidential Report on the

court file in an envelope containing the following:

THIS ENVELOPE CONTAINS THE CONFIDENTIAL REPORT OF THE

RECEIVER. THE CONFIDENTIAL REPORT HAS BEEN SEALED UNTIL

SEPTEMBER 21, 2016 (UNLESS EXTENDED BY FURTHER ORDER OF THIS

COURT) AND NO PERSON IS TO HAVE ACCESS TO THE CONFIDENTIAL

SUPPLEMENT UNTIL AFTER SEPTEMBER 21, 2016.

3. Any interested person may apply, on notice to the Receiver and any other interested parties, to

vary, amend or modify paragraph 2 of this Order.

4. Service of this Order on the Service List by email, facsimile, registered mail, courier or personal

delivery shall constitute good and sufficient service of this Order, and no Persons other than

those on the Service List are entitled to be served with a copy of this Order.

J.C.Q.B.A.

CAN: 21692719.2

CAN: 21692719.2

SCHEDULE "B"

COURT FILE NUMBER 1601-01680

COURT COURT OF QUEEN'S BENCH OF ALBERTA

JUDICIAL CENTRE CALGARY

APPLICANT PANASIA INVESTMENTS LTD.

RESPONDENT DETECTOR EXPLORATION LTD.

DOCUMENT SALE APPROVAL AND VESTING ORDER

ADDRESS FOR SERVICE AND CONTACT Peter S. Jull, Q. C.INFORMATION OF PARTY FILING THIS DLA Piper (Canada) LLPDOCUMENT Barristers and Solicitors

1000, 250 - 2 Street SWCalgary, Alberta T2P 0C1Phone: 403-776-8811Fax: 403-296-4474File No.: 76971-00009

DATE ON WHICH ORDER WAS PRONOUNCED: June 21, 2016

NAME OF JUSTICE WHO MADE THIS ORDER: The Honourable C. Eidsvik

LOCATION OF HEARING: Calgary, Alberta

UPON THE APPLICATION by Hardie and Kelly Inc. in its capacity as the Court-appointed

Receiver of (the "Receiver") of the undertaking, property and assets of Detector Exploration Ltd. (the

"Debtor") for an order approving the sale transaction (the "Transaction") contemplated by an agreement of

purchase and sale (the "Sale Agreement") between the Receiver and 1949924 Alberta Ltd. (the

"Purchaser") dated June 13, 2016 and as described in the First Report of the Receiver dated June 13,

2016 (the "Report"), and more fully in the Confidential Report dated June 13, 2016, and vesting in the

Purchaser (or its nominee) the Debtor's right, title and interest in and to the assets described in the Sale

Agreement (the "Purchased Assets");

AND UPON HAVING READ the Receivership Order dated February 22, 2016 (the

"Receivership Order"), the Report and the Affidavit of Service; AND UPON HEARING the submissions of

7634077.1

counsel for the Receiver and the Purchaser, no one appearing for any other person on the service list,

although properly served as appears from the Affidavit of Service, filed;

IT IS HEREBY ORDERED AND DECLARED THAT:

SERVICE

[1] Service of notice of this application and supporting materials is hereby declared to be good and

sufficient, and no other person is required to have been served with notice of this application, and

time for service of this application is abridged to that actually given.

VALIDITY AND PRIORITY OF SECURITY

[2] It is ordered and declared that the security interest granted by the Debtor to the secured creditors

Panasia Investments Ltd, Kevin J. Keenan and Kim Keenan, Foxwood Inc., and Ronald E.

Alexander ("the Secured Parties"), as assigned to 1949924 Alberta Ltd., with respect to all

indebtedness owing by the Debtor to the Secured Parties, is valid and enforceable and, subject to

the charges created in the Receivership Order, holds priority over any and all claims, estates,

rights, title, interests, hypothecs, mortgages, charges, liens (whether contractual, statutory or

otherwise), security interests, assignments, actions, levies, taxes, writs of execution, options,

agreements, disputes, debts, encumbrances, or other rights, limitations or restrictions of any

nature whatsoever, or any other contractual, financial or monetary claims of any nature

whatsoever, whether or not any of the foregoing have attached or been perfected, registered or

filed, and whether secured, unsecured or otherwise, with the exception of any liens or claims

which might apply under the Municipal Government Act; and

[3] The Receiver is authorized and empowered, immediately and from time to time hereafter as the

Receiver determines appropriate, to accept the Credit bid of 1949 to purchase the Purchased

Assets in partial satisfaction of the indebtedness owing by the Debtor to the Secured Parties.

APPROVAL OF TRANSACTIONS

[4] The Transaction is hereby approved, and the execution of the Sale Agreement by the Receiver is

hereby authorized and approved, with such minor amendments as the Receiver may deem

necessary. The Receiver is hereby authorized and directed to take such additional steps and

execute such additional documents as may be necessary or desirable for the completion of the

Transaction or for the conveyance of the Purchased Assets to the Purchaser (or its nominee).

VESTING OF PROPERTY

[5] Upon the delivery of a Receiver's certificate to the Purchaser (or its nominee) substantially in the

form set out in Schedule "A" hereto (the "Receiver's Certificate"), all of the Debtor's right, title

and interest in and to the Purchased Assets described in the Sale Agreement and listed on

7634077.1

Schedule "B" hereto shall vest absolutely in the name of the Purchaser (or its nominee), free

and clear of and from any and all security interests (whether contractual, statutory, or otherwise),

hypothecs, caveats, mortgages, trusts or deemed trusts (whether contractual, statutory, or

otherwise), liens, executions, levies, charges, rights of set-off, or other financial or monetary

claims, whether or not they have attached or been perfected, registered or filed and whether

secured, unsecured or otherwise (collectively, the "Claims") including, without limiting the

generality of the foregoing:

a) any encumbrances or charges created by the Receivership Order;

b) all charges, security interests or claims evidenced by registrations pursuant to thePersonal Property Security Act (Alberta) or any other personal property registry system;and

c) those Claims listed on Schedule "C" hereto (all of which are collectively referred to asthe "Encumbrances", which term shall not include the permitted encumbrances, caveats,easements and restrictive covenants listed on Schedule "D"); and,

for greater certainty, this Court orders that all of the Encumbrances affecting or relating to the

Purchased Assets are hereby expunged and discharged as against the Purchased Assets.

[6] The Receiver is authorized to deliver to the Purchaser at the closing of the transactions

contemplated by the Sale Agreement one or more general conveyances and/or specific

conveyances signed by the Receiver and, upon the filing of this Order, together with any

applicable registration fees, all appropriate government authorities are hereby directed to register

all transfers or conveyances, as may be required to convey clear title to the Purchased Assets to

the Purchaser, except for the Permitted Encumbrances.

[7] In relation to the Purchased Assets situated in the Province of Alberta, the Minister of Energy for

Alberta, acting pursuant to the Mines and Minerals Act, R.S.A. 2000, c. M-17 shall cancel and

discharge all Claims registered against the interests of the Debtor set out in Schedule "C" in

respect of the Purchased Assets and, without limiting the generality hereof, the Minister shall

cancel and discharge all security notices and all assignments under s. 426 (formerly s. 177) of the

Bank Act (Canada). For further certainty, the Minister of Energy shall not cancel and discharge

the registration of any Claims registered against estates or interests other than the estate or

interest of the Debtor..

[8] For the purposes of determining the nature and priority of Claims, the net proceeds from the sale

of the Purchased Assets (to be held in an interest bearing trust account by the Receiver) shall

stand in the place and stead of the Purchased Assets, and from and after the delivery of the

Receiver's Certificate all Claims and Encumbrances shall attach to the net proceeds from the sale

of the Purchased Assets with the same priority as they had with respect to the Purchased Assets

immediately prior to the sale, as if the Purchased Assets had not been sold and remained in the

7634077.1

possession or control of the person having that possession or control immediately prior to the

sale.

[9] The Purchaser (and its nominee, if any) shall, by virtue of the completion of the Transaction, have

no liability of any kind whatsoever in respect of any Claims against the Debtor.

[10] The Debtor and all persons who claim by, through or under the Debtor in respect of the

Purchased Assets, save and except for the persons entitled to the benefit of the Permitted

Encumbrances, shall stand absolutely barred and foreclosed from all estate, right, title, interest,

royalty, rental and equity of redemption of the Purchased Assets and, to the extent that any such

persons remains in possession or control of any of the Purchased Assets, they shall forthwith

deliver possession thereof to the Purchaser (or its nominee).

[11] The Purchaser (or its nominee) shall be entitled to enter into and upon, hold and enjoy the

Purchased Assets for its own use and benefit without any interference of or by the Debtor, or any

person claiming by or through or against the Debtor.

[12] Immediately after the closing of the Transaction, the holders of the Permitted Encumbrances shall

have no claim whatsoever against the Receiver or the Debtor.

[13] The Receiver is to file with the Court a copy of the Receiver's Certificate, forthwith after delivery

thereof to the Purchaser (or its nominee).

[14] Pursuant to clause 7(3)(c) of the Canada Personal Information Protection and Electronic

Documents Act and section 20(e) of the Alberta Personal Information Protection Act, the Receiver

is authorized and permitted to disclose and transfer to the Purchaser all human resources and

payroll information in the Debtor's records pertaining to the Debtor's past and current employees,

including personal information of those employees listed in the Sale Agreement. The Purchaser

(or its nominee) shall maintain and protect the privacy of such information and shall be entitled to

use the personal information provided to it in a manner which is in all material respects identical

to the prior use of such information by the Debtor.

[15] Notwithstanding:

a) The pendency of these proceedings;

b) Any applications for a bankruptcy order now or hereafter issued pursuant to the

Bankruptcy and Insolvency Act (Canada) in respect of the Debtor and any bankruptcy

order issued pursuant to any such applications; and

c) Any assignment in bankruptcy made in respect of the Debtor

the vesting of the Purchased Assets in the Purchaser (or its nominee) pursuant to this Order shall

be binding on any trustee in bankruptcy that may be appointed in respect of the Debtor and shall

not be void or voidable by creditors of the Debtor, nor shall it constitute nor be deemed to be a

7634077.1

settlement, fraudulent preference, assignment, fraudulent conveyance, transfer at undervalue, or

other reviewable transaction under the Bankruptcy and Insolvency Act (Canada) or any other

applicable federal or provincial legislation, nor shall it constitute oppressive or unfairly prejudicial

conduct pursuant to any applicable federal or provincial legislation.

[16] The Receiver, the Purchaser (or its nominee) and any other interested party, shall be at liberty to

apply for further advice, assistance and directions as may be necessary in order to give full force

and effect to the terms of this Order and to assist and aid the parties in closing the Transaction.

MISCELLANEOUS MATTERS

[17] This Court hereby requests the aid and recognition of any court, tribunal, regulatory or

administrative body having jurisdiction in Canada or in the United States to give effect to this

Order and to assist the Receiver and its agents in carrying out the terms of this Order. All courts,

tribunals regulatory and administrative bodies are hereby respectfully requested to make such

orders as to provide such assistance to the Receiver, as an officer of this Court, as may be

necessary or desirable to give effect to this Order or to assist the Receiver and its agents in

carrying out the terms of this Order.

[18] This Order must be served only upon those interested parties attending or represented at the

within application and service may be effected by facsimile, electronic mail, personal delivery or

courier. Service is deemed to be effected the next business day following the transmission or

delivery of such documents.

[19] Service of this Order on any party not attending this application is hereby dispensed with.

J.C. C.Q.B.A.

7634077.1

COURT FILE NUMBER

COURT

JUDICIAL CENTRE

PLAINTIFF

DEFENDANT

DOCUMENT

ADDRESS FOR SERVICE ANDCONTACT INFORMATION OFPARTY FILING THISDOCUMENT

RECITALS

Schedule "A"

Form of Receiver's Certificate

1601-01680

COURT OF QUEEN'S BENCH OF ALBERTA

CALGARY

PANASIA INVESTMENTS LTD.

DETECTOR EXPLORATION

RECEIVER'S CERTIFICATE

Peter Jull, Q.C.DLA PIPER (CANADA) LLP1000, 250-2nd St. S.W.Calgary, AB T2P 0C1(403) 776-8811peter.jull@dlapiper.com

Clerk's Stamp

A. Pursuant to an Order of the Honourable Justice [Name] of the Court of Queen's Bench of

Alberta, Judicial District of Calgary (the "Court") dated January 22, 2016 Hardie and Kelly Inc.

was appointed as the receiver (the "Receiver") of the undertaking, property and assets of

Detector Exploration Ltd. (the "Debtor").

B. Pursuant to an Order of the Court dated [Date], the Court approved the agreement of purchase

and sale made as of [Date of Agreement] (the "Sale Agreement") between the Receiver and

[Name of Purchaser] (the "Purchaser") and provided for the vesting in the Purchaser of the

Debtor's right, title and interest in and to the Purchased Assets, which vesting is to be effective

with respect to the Purchased Assets upon the delivery by the Receiver to the Purchaser of a

certificate confirming (i) the payment by the Purchaser of the Purchase Price for the Purchased

Assets; (ii) that the conditions to Closing as set out in section * of the Sale Agreement have been

satisfied or waived by the Receiver and the Purchaser; and (iii) the Transaction has been

completed to the satisfaction of the Receiver.

C. Unless otherwise indicated herein, terms with initial capitals have the meanings set out in the

Sale Agreement.

THE RECEIVER CERTIFIES the following:

7634077.1

1. The Purchaser (or its nominee) has paid and the Receiver has received the Purchase Price

for the Purchased Assets payable on the Closing Date pursuant to the Sale Agreement;

2. The conditions to Closing as set out in section * of the Sale Agreement have been satisfied or

waived by the Receiver and the Purchaser (or its nominee); and

3. The Transaction has been completed to the satisfaction of the Receiver.

4. This Certificate was delivered by the Receiver at [Time] on [Date].

[Name of Receiver], in its capacity asReceiver of the undertaking, propertyand assets of [Debtor], and not in itspersonal capacity.

Per;

Name:

Title:

7634077.1

Schedule "B"

Purchased Assets

See attached.

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