Memorandum of Understanding between

The Province of British Columbia of Canada and the National Energy Administration of

The Peoples Republic of China on Natural Gas Sector Cooperation

The Province of British Columbia of Canada and the National Energy Administration of the Peoples Republic of China, hereinafter referred to as the Participants,

Seeking to expand and strengthen their cooperation in the field of energy by formalizing a framework for discussion, information exchange and cooperative activities,

Referring to the Memorandum of Understanding Between the Department of Natural Resources of Canada and the National Energy Administration of the Peoples Republic of China Concerning Cooperation in the Field of Energy signed at Beijing, China on February8,2012, which supports liaison with Canadas provinces, and

Acknowledging that their cooperation is of great strategic importance because of:

i) The National Energy Administrations mandate to lead international energy initiatives and activities;

ii) British Columbias jurisdictional authority as a province of Canada for energy and natural resource development within its territory;

iii) Chinas energy security and sustainability goals, and large and growing need for reliable, competitive and sustainable energy supply as the worlds largest user of energy;

iv) British Columbias role as a global leader with respect to safe, environmentally responsible and competitive energy and natural resource development, and as a jurisdiction endowed with substantial natural gas resources; and

v) Increased global demand for new and expanded energy sources, including natural gas, which has created an opportunity for the Participants to work together to mitigate global carbon emissions while enabling sustained economic growth,

Have stated their mutual desire to develop and reinforce their cooperation in the field of natural gas. Accordingly, the Participants have reached the following understanding:

1. OBJECTIVESa) The objective of this Memorandum of Understanding (MOU) is to strengthen energy related business opportunities between

China and British Columbia, with particular emphasis on the export of Liquefied Natural Gas (LNG) from British Columbia toChina.

b) The Participants will adopt necessary measures to support and encourage direct liaison between the departments, enterprises and research institutions of China and British Columbia, to further explore the approaches of cooperation in the field of energy development, including natural gas development, with the long term objective of increasing mutually beneficial trade and investment between them.

2. COOPERATION PRIORITIESa) The Participants will work cooperatively in a number of areas, inter alia:

i) Exchanging information on the natural gas legislation, regulations, policies, programs and practices of their respective governments, potential supply and demand, import and export trends and market outlook;

ii) Encouraging and facilitating energy related information exchange and cooperation between business associations, companies, and education and research institutions in British Columbia and China;

iii) Encouraging participation of representatives of their governments, and British Columbia and China based companies and institutions in each others energy conferences, and otherwise facilitating contacts and networking opportunities for Chinese and British Columbia business leaders, researchers and government agencies;

iv) Encouraging the participation of British Columbia and China based enterprises in each others natural gas sectors, in activities such as investment, exploration, production, and infrastructure development;

v) Promoting cooperation and understanding in related areas of interest, such areas as labour market demand and supply, technicalservices, equipment manufacturing, and science and technology research and development; and

vi) Other forms of cooperation that they may mutually decide upon.

b) The Participants will cooperatively promote understanding of the role that British Columbia-sourced LNG and other energy exports can play in meeting Chinas energy needs while significantly reducing Chinese and global carbon emissions by replacing more carbon-intensive fuels such as diesel and coal.

3. COORDINATION AND IMPLEMENTATIONa) To facilitate information exchange and cooperation, the Participants will establish a dialogue mechanism, providing a platform

forinformation sharing, periodic policy exchanges, timely coordination of activities, and addressing any questions arising from thisMOU.

b) Each Participant will designate a representative for the coordination and efficient management of activities and annual reporting ofactivities under this MOU, and advise the other Participant within one month of the signing of this MOU.

4. OTHER CONSIDERATIONSa) The Participants will, in accordance with their respective applicable laws and regulations, and respecting the priority of hiring

domestic labour whenever possible, work together with the appropriate authorities to secure and facilitate the entry of foreign workers.

b) This MOU is not legally binding.

c) The Participants will resolve any differences in the interpretation or application of this MOU through negotiations.

5. EFFECTIVE TERMa) This Memorandum of Understanding will take effect on the date of its last signature, and remain in effect for five (5) years.

b) A Participant may terminate its involvement in this MOU by giving one month written notice to the other Participant.

c) The Participants may modify this MOU by their mutual consent in writing.

Signed in duplicate this 24th day of July, 2014, at Vancouver, British Columbia, Canada, in the English and Chinese languages, each version being equally valid.

FOR THE PROVINCE OFBRITISH COLUMBIA,

CANADA

FOR THE NATIONAL ENERGY ADMINISTRATION OF THE PEOPLES REPUBLIC OF CHINA

Honourable Rich ColemanDeputy Premier

Minister of Natural Gas Development

Honourable Wu XinxiongAdministrator

National Energy Administration

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Rich Coleman