News Period of 13 Oct 2005 to 6 Nov 2006

There is no easy way to describe it, this has been a tough year for me.  As most all of you know Cindy Hanks by beloved wife and companion of nearly 27 years passed away on January 13, 2006.  The personal tragedy put all that I have known into a tail spin of struggle and emptiness.  Light broke through the darkness as God blessed me to meet, acquaint myself with and marry Heidi Burke on 4 August 2006.

Heidi B. Hanks has been appointed as a Director/Vice President/Secretary of   Gateway Resources U.S.A.,Inc. and Blaine Exploration Ltd (USA).

Things have been settling down the past month as we are getting into more of a routine schedule.  But a lot of projects and work has slipped by and I have been trying to catch up with things.

Just before Cindy died we drilled the Khan #3 well.  We had some good gas shows in the Mulky Shale and Bartlesville Sand.  We cased the well and are getting ready to tie it in at this time.

We are also getting getting ready to drill a Khan #4.  I still have to complete my analysis, but I hope to spud in December.

We had a great year in terms of revenue and profitability.  We also made banking connections with the Coppermark Bank in Oklahoma City.  Finally we have been able to get credit lines open based on the value of our leases.  This has been a great opportunity as now we have access to funds if we can put the money in to revenue generating projects.

I am still working on a plan to enable shareholders of both Gateway Resources Ltd. and Gateway Resources U.S.A., Inc. to sell or buy shares.  The plan is with my accountant for review at this time and I hope to be able to make an announcement soon.