Standing Stone Update

December 2008

Welcome to our annual update.

1. Standingstone GP One has paid for our land and we are mortgage free going forward.

2. Our Partnership has approximately $390,000.00 on deposit.

3. A bid from Stantec Engineering, to engineer our Area Structure Plan and Sub-division application came in  well under our budget forcast. We will go forward with our ASP and Sub-division application when Petro-Canada or Suncor starts work on their respective Upgrader sites.

4.We have leased our farm house to a wonderful family of 5.  Mom and Dad and 3 lovely girls.  The lease term is for on year with one month extentions thereafter.  This will add $21,600.00 per year to our bottom line.

5. We expect the Petro Canada approval by the ERCB for their Fort Hills Upgrader to be announced before the Second Quarter 09. On Dec 12, 2008 North West Upgrader announced it has almost doubled its site near Redwater as they prepare for the economic rebound.

6. There is very little Industrial Land available in the Redwater area.There was a .61 acre piece of Industrial land in Redwater listed for sale in October 2008 for $169,900, which equates to $278,524.59 per acre.  The last sale of Redwater highway commercial land was for $222,000.00 per acre. Finally a  small piece of light industrial property is listed across the street and a few blocks west of our property for $162,000.00 per acre.

7. There are currently two residential developments in Redwater laying sewer pipe and other land  services for their sub divisions. One of the sites is composed of a 142 lots.

8. During the recent federal election campaign, Stephen Harper pledged “his government would ban exports of raw bitumen to any country that failed to conform with Canadian carbon emissions reduction standards….. this would keep upgrading investment and jobs in Canada….”

9. Interest rates on our warrants have been reduced to 6% for 2009, as per our offering memorandum.  This is the prime rate as of December 1st 2008 plus 2%.  Therefor on a 3/4 debt unit the monthly payment has been reduced to $46.88 per month from $64.45, for a monthly saving of $17.57 and an annual savings of $210.84 for 2009.

In the event that we receive any news that significantly affects our investment we will post the information on our website at www.standingstonedevelopments.com

In these challenging economic times we believe that our Standing Stone Eco-develpment maintains itself as a very viable investment in all of our investment portfolios.

We wish all of you a very Merry Christmas and a Happy Holiday season.

Regards,
Casey J. O'Byrne
STANDING STONE G.P. 1 LTD.
1920 Phipps McKinnon Building
10020 - 101A Avenue
Edmonton, Alberta
Canada
T5J 3G2

Telephone:  (780) 421-0058 
Facsimile: (780) 421-0069
email: casey@standingstonedevelopments.com

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