LETTER AGREEMENT

The Texada and Royalty Exploration entered the Term Sheet under which the parties agreed to enter into the Definitive Agreement on or before May 15, 2009 and complete the Business Combination and the Placement on or before May 29, 2009 (collectively, the “ Texada Transactions ”).  Although the parties worked in good faith to close the Texada Transactions as contemplated in the Term Sheet, the Texada Transactions have not closed as anticipated due to conditions in the financial markets.  On or about July 24, 2009, Royalty Exploration entered into engagement letters with each of MAK Allen & Day Capital Partners, Inc. (“ MAK ”) and Bryant Park Capital, Inc. (“ BPC ”) to provide financial advisory services in connection with the Gore Acquisition and the Placement (the “ MAK-BPC Engagement ”).  Each of Royalty Exploration and Texada understand that the Acquisition as contemplated in the Term Sheet may not be completed as planned.

Under the terms of the Term Sheet, each of Royalty Exploration and Texada agreed to undertake certain obligations and commitments, including binding commitments under Sections 1.C, 6, 13, 14, 15, 16 and 17 of the Term Sheet, with the expectation of closing and to facilitate the Texada Transactions.  Texada advanced to Royalty Exploration $83,284 under the terms of the Bridge Loan, which is repayable in accordance with Section 1.C of the Term Sheet.  Texada also incurred expenses and opportunity costs related to the facilitating the Texada Transactions.

Each of Royalty Exploration and Texada agree that it is in the best interest of the parties and their respective shareholders to amicably agree to specify each party’s obligations under the Term Sheet under the terms set forth in this Letter Agreement.  Accordingly, each of Royalty Exploration and Texada agree as follows: