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http://tagoil.com/pdf/TAG_Circular_2009.pdfTRANSCRIPT
Friday, December 11th, 2009
At the offices of Blake, Cassels & GraydonThree Bentall Centre595 Burrard Street, Suite 2600Vancouver, BC Canada
Notice of Annual and Special Meeting & Information Circular
Management Proxy Circular 2009 1
Notice of Annual and Special Meeting of Shareholders
Take notice that the annual and special meeting (the “Meeting”) of shareholders of TAG Oil Ltd. (the “Company”) will be held at
Suite 2600, Three Bentall Centre, 595 Burrard Street, Vancouver, British Columbia, on December 11, 2009 at 10:00 a.m., local time,
for the following purposes:
A. Annual Meeting Matters 1. ToreceivetheconsolidatedfinancialstatementsoftheCompanyforitsfiscalyearendedMarch31,2009,andthereportofthe
auditor thereon.
2. To elect directors of the Company for the ensuing year.
3. ToappointanauditoroftheCompanyfortheensuingyearandtoauthorizethedirectorstofixtheauditor’sremuneration.
B. Special Meeting Matter 1. Toconsiderandifthoughtfittopass,withorwithoutvariation,anordinaryresolutiontore-approvetheCompany’sShareOption
Planallowingthegrantingofupto10%oftheCompany’sissuedandoutstandingcommonsharesatanytime,asmoreparticu-
larly set out in the attached Information Circular.
C. General Matters1. ToconsideranypermittedamendmenttoorvariationofanymatteridentifiedinthisNoticeandtotransactsuchotherbusiness
as may properly come before the Meeting or any adjournment thereof.
AnInformationCircularaccompaniesandisdeemedtoformpartofthisNotice.TheInformationCircularcontainsdetailsofmat-
ters to be considered at the Meeting. The Company will provide to any shareholder, free of charge, upon request to the Company,
telephonenumber(604)609-3350orfaxnumber(604)682-1174,acopyofanyyearendandinterimfinancialstatementsofthe
Companyfiledwiththeapplicablesecuritiesregulatoryauthoritiesduringthepasttwoyears.Additionalinformationisalsoavailable
free of charge on SEDAR at www.sedar.com.
A shareholder who is unable to attend the Meeting in person and who wishes to ensure that such shareholder’s shares will be
voted at the Meeting is requested to complete, date and sign the enclosed form of proxy, or another suitable form of proxy, and
deliver it in accordance with the instructions set out in the form of proxy and in the Information Circular.
DatedatVancouver,BritishColumbia,October26,2009.
BY ORDER OF THE BOARD
Garth Johnson
ChiefExecutiveOfficer
2 Management Proxy Circular 2009
This Information Circular is furnished in connection with the solicitation of proxies by the management of TAG Oil Ltd. (the
“Company”) for use at the annual and special meeting of its shareholders (the “Meeting”) to be held on December 11, 2009 at
the time and place and for the purposes set forth in the accompanying notice of the meeting (the “Notice of Meeting”). Except
where otherwise indicated, the information contained herein is stated as at October 26, 2009.
InthisInformationCircular,referencesto“theCompany”,“we”and“our”refertoTAGOilLtd.“CommonShares”meanscommon
sharesinthecapitaloftheCompany.“BeneficialShareholders”meansshareholderswhodonotholdCommonSharesintheirown
name, “Registered Shareholders” means shareholders whose names appear on the records of the Company as the registered hold-
ersofCommonSharesand“intermediaries”referstobrokers,investmentfirms,clearinghouses,trusteesoradministratorsofself-
administeredRRSPs,RRIFs,RESPsandsimilarplansandsimilarentitiesthatownsecuritiesonbehalfofBeneficialShareholders.
AlldollarfiguresareinCanadiandollarsunlessstatedotherwise.
General Proxy InformationSolicitation of Proxies
The instrument of proxy accompanying this Information Circular (the “Proxy”) is solicited by and on behalf of the management of the
Company. The solicitation of Proxies will be primarily by mail, but Proxies may be solicited personally or by telephone by directors,
officersandregularemployeesoftheCompany.TheCompanywillbearallcostsofthissolicitation.Wehavearrangedforintermediar-
iestoforwardthemeetingmaterialstoBeneficialShareholdersandwemayreimbursetheintermediariesfortheirreasonablefees
and disbursements in that regard.
Appointment of Proxyholders
TheindividualsnamedintheaccompanyingProxyaretheofficersoftheCompany.If you are a shareholder entitled to vote at the
Meeting, you have the right to appoint a person or company other than either of the persons designated in the Proxy, who need
not be a shareholder, to attend and act for you on your behalf at the Meeting. You may do so either by inserting the name of that
other person in the blank space provided in the Proxy or by completing and delivering another suitable form of proxy.
The only methods by which you may appoint a person as proxy are submitting a Proxy by mail, hand delivery or fax.
Voting by Proxyholder
The persons named in the Proxy will vote or withhold from voting the Common Shares represented thereby in accordance with your
instructions on any ballot that may be called for. If you specify a choice with respect to any matter to be acted upon, your Common
Shares will be voted accordingly. The Proxy confers discretionary authority on persons named therein with respect to:
a) eachmatterorgroupofmattersidentifiedthereinforwhichachoiceisnotspecified,otherthantheappointmentofanauditor
and the election of directors;
b) anyamendmenttoorvariationofanymatteridentifiedtherein;and
c) any other matter that properly comes before the Meeting.
In respect of a matter for which a choice is not specified in the Proxy, the persons named in the Proxy will vote the Common
Shares represented by the Proxy for the approval of such matter.
Information Circularas at October 26, 2009
Management Proxy Circular 2009 3
Registered Shareholders
If you are a Registered Shareholder, you may wish to vote by Proxy whether or not you are able to attend the Meeting in person. If
yousubmitaProxy,youmustcomplete,dateandsigntheProxyandthenreturnittotheCompany’stransferagent,Computershare
InvestorServicesInc.(“Computershare”),byfaxwithinNorthAmericaat1-866-249-7775,outsideNorthAmericaat416-263-9524,
orbymailorbyhandat9thFloor,100UniversityAvenue,Toronto,Ontario,M5J2Y1notlessthan48hours(excludingSaturdays,
Sundays and holidays) before the Meeting or the adjournment thereof at which the Proxy is to be used.
BeneficialShareholders
ThefollowinginformationisofsignificantimportancetomanyshareholdersoftheCompanywhodonotholdCommonSharesintheir
ownname.BeneficialShareholdersshouldnotethattheonlyProxiesthatcanberecognizedandacteduponattheMeetingare
those deposited by Registered Shareholders.
If Common Shares are listed in an account statement provided to a shareholder by a broker, then in almost all cases those Common
Shareswillnotberegisteredintheshareholder’snameontherecordsoftheCompany.SuchCommonShareswillmorelikelybe
registeredunderthenamesoftheshareholder’sbrokeroranagentofthatbroker.IntheU.S.,thevastmajorityofsuchCommon
Shares are registered under the name of Cede & Co. as nominee for The Depository Trust Company (which acts as depositary for
manyU.S.brokeragefirmsandcustodianbanks),andinCanada,underthenameofCDS&Co.(theregistrationnameforTheCana-
dianDepositoryforSecuritiesLimited,whichactsasnomineeformanyCanadianbrokeragefirms).
IntermediariesarerequiredtoseekvotinginstructionsfromBeneficialShareholdersinadvanceofshareholders’meetings.Every
intermediary has its own mailing procedures and provides its own return instructions to clients.
IfyouareaBeneficialShareholder:
YoushouldcarefullyfollowtheinstructionsofyourbrokerorintermediaryinordertoensurethatyourCommonSharesarevotedat
the Meeting.
The form of proxy supplied to you by your broker will be similar to the Proxy provided to Registered Shareholders by the Company.
However, its purpose is limited to instructing the intermediaries on how to vote on your behalf. Most brokers now delegate responsi-
bility for obtaining instructions from clients to Broadridge Financial Solutions Inc. (“Broadridge”) in the United States and in Canada.
Broadridge mails a voting instruction form in lieu of a Proxy provided by the Company. The voting instruction form will name the same
personsastheCompany’sProxytorepresentyouattheMeeting.Youhavetherighttoappointaperson(whoneednotbeaBenefi-
cial Shareholder of the Company), other than the persons designated in the voting instruction form, to represent you at the Meeting.
To exercise this right, you should insert the name of the desired representative in the blank space provided in the voting instruction
form. The completed voting instruction form must then be returned to Broadridge by mail or facsimile or given to Broadridge by phone
orovertheinternet,inaccordancewithBroadridge’sinstructions.Broadridgethentabulatestheresultsofallinstructionsreceived
and provides appropriate instructions respecting the voting of Common Shares to be represented at the Meeting. If you receive a
voting instruction form from Broadridge, you cannot use it to vote Common Shares directly at the Meeting. The voting instruc-
tion form must be completed and returned to Broadridge, in accordance with its instructions, well in advance of the Meeting in
order to have the Common Shares voted.
4 Management Proxy Circular 2009
Although,asaBeneficialShareholder,youmaynotberecognizeddirectlyattheMeetingforthepurposesofvotingCommonShares
registered in the name of your broker, you, or a person designated by you, may attend at the Meeting as proxyholder for your broker
and vote your Common Shares in that capacity. If you wish to attend at the Meeting and indirectly vote your Common Shares as
proxyholder for your broker, or have a person designated by you do so, you should enter your own name, or the name of the person
you wish to designate, in the blank space on your voting instruction form provided to you and return the same to your broker in accor-
dance with the instructions provided by such broker (or agent), well in advance of the Meeting.
Alternatively, you can request in writing that your broker send you a legal proxy which would enable you, or a person designated by
you, to attend at the Meeting and vote your Common Shares.
Therearetwokindsofbeneficialowners:thosewhoobjecttotheirnamebeingmadeknowntotheissuersofsecuritieswhichthey
own(calledOBOsforObjectingBeneficialOwners);andthosewhodonotobjecttotheissuersofthesecuritiestheyownknowing
whotheyare(calledNOBOsforNon-ObjectingBeneficialOwners).UpuntilSeptember2002,issuers(includingthedirectorsand
officersoftheCompany)hadnoknowledgeoftheidentityofanyoftheirbeneficialownersincludingNOBOs.Subjecttotheprovision
ofNationalInstrument54-101,Communication with Beneficial Owners of Securities of Reporting Issuers (“NI54-101”),however,
afterSeptember1,2002issuerscouldrequestandobtainalistoftheirNOBOsfromintermediariesviatheirtransferagents.Prior
toSeptember1,2004issuerscouldobtainthisNOBOlistanduseitforspecificpurposesconnectedwiththeaffairsoftheCompany
exceptfor thedistributionofproxy-relatedmaterialsdirectly toNOBOs.ThiswasStageOneofthe implementationofNI54-101.
EffectiveSeptember1,2004issuerscanobtainandusethisNOBOlistfordistributionofproxy-relatedmaterialsdirectly(notvia
Broadridge)toNOBOs.ThiswasStageTwooftheimplementationofNI54-101.
TheCompanyhasdecidedtocontinuetotakeadvantageofthoseprovisionsofNI54-101thatpermit it todirectlydeliverproxy-
relatedmaterials to itsNOBOs.Asa result,NOBOscanexpect to receiveascannableVoting InstructionForm(“VIF”) fromCom-
putershare. These VIFs are to be completed and returned to Computershare in the envelope provided or by facsimile. In addition,
Computershare provides both telephone voting and internet voting as fully described on the VIF. Computershare will tabulate the
resultsoftheVIFsreceivedfromNOBOsandwillprovideappropriateinstructionsattheMeetingwithrespecttotheCommonShares
represented by the VIFs they receive.
TheseshareholdermaterialsarebeingsenttobothRegisteredShareholdersandBeneficialShareholders.IfyouareaBeneficial
Shareholder, and the Company or its agent has sent these materials directly to you, your name, address and information about your
holdings of Common Shares have been obtained in accordance with applicable securities regulatory requirements from the interme-
diary holding Common Shares on your behalf.
By choosing to send these shareholder materials to you directly, the Company (and not the intermediary holding Common Shares on
your behalf) has assumed responsibility for (i) delivering these materials to you, and (ii) executing your proper voting instructions as
specifiedintherequestforvotinginstructions.
Management Proxy Circular 2009 5
Revocation of Proxies
In addition to revocation in any other manner permitted by law, a Registered Shareholder who has given a Proxy may revoke it by:
a) executing a Proxy bearing a later date or by executing a valid notice of revocation, either of the foregoing to be executed by the
RegisteredShareholderortheRegisteredShareholder’sauthorizedattorneyinwriting,or,iftheRegisteredShareholderisa
company,underitscorporatesealbyanofficerorattorneydulyauthorized,andbydeliveringtheProxybearingalaterdateto
ComputershareorattheheadofficeoftheCompanyatSuite2901,1050BurrardStreet,Vancouver,BritishColumbia,V6Z
2S3orattheaddressoftheCompany’sAttorneyforServiceinBritishColumbiaatSuite2600,ThreeBentallCentre,595
BurrardStreet,Vancouver,BritishColumbia,V7X1L3,atanytimeuptoandincludingthelastbusinessdaythatprecedes
the day of the Meeting or, if the Meeting is adjourned, the last business day that precedes any reconvening thereof, or to the
chairman of the Meeting on the day of the Meeting or any reconvening thereof, or in any other manner provided by law, or
b) personallyattendingtheMeetingandvotingtheRegisteredShareholder’sCommonShares.
A revocation of a Proxy will not affect a matter on which a vote is taken before the revocation.
Interest Of Certain Persons Or Companies In Matters To Be Acted UponNodirectororexecutiveofficeroftheCompany,noranypersonwhohasheldsuchapositionsincethebeginningofthelastcom-
pletedfinancialyearendoftheCompany,noranyproposednomineeforelectionasadirectoroftheCompany,noranyassociateor
affiliateoftheforegoingpersons,hasanymaterialinterest,directorindirect,bywayofbeneficialownershipofsecuritiesorother-
wise, in any matter to be acted on at the Meeting other than as set out herein.
Voting Securities And Principal Holders Of Voting SecuritiesTheboardofdirectorsoftheCompany(the“Board”)hasfixedOctober30,2009astherecorddate(the“RecordDate”)fordetermi-
nationofpersonsentitledtoreceivenoticeof,andvoteat,theMeetingandanyadjournmentthereof.OnlyRegisteredShareholders
at the close of business on the Record Date who either attend the Meeting personally or complete, sign and deliver a Proxy in the
manner and subject to the provisions described above will be entitled to vote or to have their Common Shares voted at the Meeting.
TheCompanyisauthorizedtoissueanunlimitednumberofCommonShareswithoutparvalue.AsofOctober26,2009therewere
16,809,722CommonShareswithoutparvalueissuedandoutstanding,eachcarryingtherighttoonevote.TheCompanyhasno
other classes of voting securities.
AsatthedateofthisInformationCircular,totheknowledgeofthedirectorsandexecutiveofficersoftheCompany,nooneshare-
holderbeneficiallyowns,orcontrols,directlyorindirectly,sharescarryingmorethan10%ofthevotingrightsattachedtoalloutstand-
ing shares of the Company, except as follows:
ShareholderName NumberofCommonShares(1) Percentage of Class
AlexGuidi3,148,900 18.73%
Notes:
(1)Asreportedinpublicfilings.
6 Management Proxy Circular 2009
Quorum; Votes Necessary To Pass ResolutionsTheCompany’sArticlesprovidethataquorumforthetransactionofbusinessatanyshareholders’meetingistwoshareholdersor
proxyholders present, representing an aggregate of at least 5% of the issued Common Shares entitled to be voted at the sharehold-
ers’meeting.Ifaquorumisnotpresentwithinone-halfhourafterthetimesetforthecommencementoftheMeeting,theMeeting
will be adjourned and set over for one week to the same time and place, and thereupon whatever number of Common Shares is
represented shall constitute a quorum.
Asimplemajority(i.e.50%)ofaffirmativevotescastattheMeetingisrequiredtopasstheordinaryresolutionsdescribedherein,
whereasaspecialmajority(i.e.2/3)ofaffirmativevotescastattheMeetingisrequiredtopassthespecialresolutiondescribed
herein.IftherearemorenomineesforelectionasdirectorsorappointmentoftheCompany’sauditorthantherearevacanciesto
fill,thosenomineesreceivingthegreatestnumberofvoteswillbeelectedorappointed,asthecasemaybe,untilallsuchvacancies
havebeenfilled.Ifthenumberofnomineesforelectionorappointmentisequaltothenumberofvacanciestobefilled,allsuch
nominees will be declared elected or appointed by acclamation.
Financial StatementsTheauditedconsolidatedfinancialstatementsandtherelatedmanagementdiscussionandanalysisoftheCompanyfortheyear
endedMarch31,2009andthereportoftheauditoronthosestatementswillbeplacedbeforetheMeeting.
Theauditedconsolidatedfinancialstatementsandthereportoftheauditor,andtherelatedmanagementdiscussionandanalysis
areincludedintheAnnualReportforthefiscalyearendedMarch31,2009,whichisincorporatedbyreferenceintothisInforma-
tionCircular.Iftheshareholderhaspreviouslyrequestedacopyoftheannualfinancialstatementsandtherelatedmanagement
discussion and analysis, such Annual Report will have been mailed to the shareholder, or the shareholder will have received email
notificationthattheAnnualReportisavailablefordownloadwithoutchargefromSEDARatwww.sedar.com.
Election Of DirectorsThetermofofficeofeachofthefourcurrentdirectorswillendattheconclusionoftheMeeting.Unlessthedirector’sofficeisearlier
vacatedinaccordancewiththeprovisionsoftheBusinessCorporationsAct(BritishColumbia),eachdirectorelectedwillholdoffice
until the conclusion of the next annual meeting of the Company, or until their successor is elected or appointed.
The Board has set the number of directors to be elected at the Meeting at four. The following table sets out the names of manage-
ment’snomineesforelectionasdirectors,theirjurisdictionofresidence,theofficestheyholdwithintheCompany,theirprincipal
occupations, the period of time during which each has been a director of the Company, and the number of Common Shares of the
Companyanditssubsidiariesbeneficiallyownedbyeach,directlyorindirectly,oroverwhicheachnomineeexercisescontrolordirec-
tion, as at the date of this Information Circular.
In the absence of instructions to the contrary, Proxies given pursuant to the solicitation by the management of the Company will be
voted for the nominees listed in this Information Circular. Management does not contemplate that any of the nominees will be unable
to serve as a director.
Management Proxy Circular 2009 7
NomineePositionwith the Company and Residence(1)
Principal Occupation(1)
Served as a Director of the
Company since
CommonSharesBeneficiallyOwnedorControlledor
Directed, Directly or Indirectly(2)
Garth Johnson
Chief Executive Officer, Chief Financial
Officer, Corporate Secretary and Director
British Columbia, Canada Company Executive April 20, 2001 15,000
John Vaccaro(3)
Director
British Columbia, Canada
Managing Partner/Consultant,
YieldManagementConsultants June11,2008 —
Dan Brown(3)(4)
Director
British Columbia, Canada
Corporate Accountant,
DLJManagementCorp. July20,2007 —
Giuseppe (Pino) Perone(3)(4)
Director
British Columbia, Canada
Lawyer,
DLJManagementCorp. July20,2007 —
Notes:
(1)Informationastoresidenceandprincipaloccupationhasbeenfurnishedbytherespectivedirectorindividually.Seealso“InformationRegardingManagement’sNomineesfor
Election to the Board” below.
(2)InformationastoCommonSharesbeneficiallyownedorcontrolledhasbeenfurnishedbytherespectivedirectorindividually.Thedirectorsdonotholdsharesinanysubsidiaryofthe
Company.
(3)DenotesmemberofAuditCommittee.
(4) Denotes member of Compensation Committee.
Biographical summaries and other required information about each of the nominees for election as directors are set out below in the
sectionentitled“InformationRegardingManagement’sNomineesforElectiontotheBoard.”
Corporate Cease Trade Orders or BankruptciesNoproposeddirectoroftheCompanyis,orwithinthetenyearspriortothedateofthisInformationCircularhasbeen,adirector,chief
executiveofficerorchieffinancialofficerofanycompany,includingtheCompany,that:
a) was the subject of a cease trade order or similar order or an order that denied the company access to any exemption under
securitieslegislationforaperiodofmorethan30consecutivedayswhiletheproposeddirectorwasactinginthatcapacity;or
b) wassubjecttoaneventthatresulted,afterthedirectorceasedtobeadirector,chiefexecutiveofficer,orchieffinancialofficer
of the company, in the Company being the subject of a cease trade order or similar order or an order that denied the relevant
companyaccesstoanyexemptionundersecuritieslegislation,foraperiodofmorethan30consecutivedaysandwhichevent
occurredwhiletheproposeddirectorwasactinginthatcapacityasdirector,chiefexecutiveofficerorchieffinancialofficer.
8 Management Proxy Circular 2009
Noproposeddirectoris,atthedateofthisInformationCircular,orhasbeenwithin10yearspriortothedateofthisInformation
Circular,adirectororexecutiveofficerofanycompany,includingtheCompany,thatwhiletheproposeddirectorwasactinginthat
capacity or within a year of that person ceasing to act in that capacity, became bankrupt, made a proposal under any legislation
relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors or
had a receiver, receiver manager or trustee appointed to hold its assets.
Individual Bankruptcies
NoproposeddirectoroftheCompanyhas,withinthetenyearspriortothedateofthisInformationCircular,becomebankruptor
made a proposal under any legislation relating to bankruptcy or insolvency, or has been subject to or instituted any proceedings,
arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold the assets of that indi-
vidual.
InformationRegardingManagement’sNomineesforElectiontotheBoard
Thefollowingbiographicalinformationaboutmanagement’snomineesforelectiontotheBoardhasbeensuppliedbytherespective
nominees:
Mr. Garth JohnsonjoinedtheCompanyasthecorporateaccountantin1997.Mr.JohnsonisaCertifiedGeneralAccountantwithover
thirteenyearsofexperienceinexecutivemanagement,acquisitions,finance,accountingandregulatoryreportingforpubliccompa-
niesandhasbeeninstrumentalindevelopingjuniorcompaniesfromstart-uptolistingonvariousexchanges.Mr.Johnsonisalsoa
corporatebusinessexecutivethathasbeeninvolvedinoilandgasactivities,primarilyinNewZealandandPapuaNewGuinea,over
thepast12years.Currently,Mr.JohnsonistheChiefExecutiveOfficer,ChiefFinancialOfficer,CorporateSecretaryandadirectorof
theCompany.Mr.JohnsonisalsotheChiefExecutiveOfficer,PresidentandadirectorofTrans-OrientPetroleumLtd.(“Trans-Orient”).
Mr. John Vaccaro hasbeenamemberoftheBoardsinceJune11,2008.Mr.Vaccarohasover20yearsofexperienceinthefinancial
services industry where he directed and provided investment consulting to high net worth individuals as well as corporate and insti-
tutionalclients.HeactedasaseniorinvestmentexecutivewithCIBCWoodGundyfromJanuary2002toMarch2007.Mr.Vaccaro
hassinceestablishedaprivateclientconsultingpracticeinthefinancialservicessector,YieldManagementConsultants,andacts
as Managing Partner and a consultant for the practice. Mr. Vaccaro is also an active a member of the Fellowship of the Canadian
SecuritiesInstituteandholdsadegreefromtheUniversityofBritishColumbiainUrbanLandEconomicswithdoubleMajors.
Mr. Dan BrownhasbeenamemberoftheBoardsinceJuly20,2007.Mr.Brownhasbeenacontrollerintheoilandgasindustryfor
a number of years and has also provided corporate accounting services to public and private companies for more than seven years.
Mr. Brown has also been a director of certain public companies operating in the oil and gas industry.
Mr. Giuseppe (Pino) PeronehasbeenamemberoftheBoardsinceJuly20,2007.Mr.Peroneiscurrentlypracticingasacorpo-
rate lawyer for a group of public companies and has legal experience in a variety of corporate and commercial matters. Mr. Perone
obtainedaB.A.withDistinctioninSociologyfromtheUniversityofVictoriain2001andanLL.B.fromtheUniversityofAlbertain
2005,andhaspreviouslyarticledatthelawfirmofLangMichenerLLPintheirVancouver,BritishColumbiaoffice.Mr.Peroneisalso
anactivememberoftheLawSocietyofBritishColumbiaandtheCanadianBarAssociation.
Management Proxy Circular 2009 9
All of the proposed directors are currently directors of the Company. The names of further nominees for election may come from the
floorattheMeeting.TheCompanyhasreceivednoothernominationsforelectiontotheBoardoranyothershareholders’proposal
as permitted by the Business Corporations Act (British Columbia).
The Board does not contemplate that any of its nominees will be unable to serve as a director, but if for any reason that should occur,
thepersonsnamedintheProxyshallhavetherighttousetheirdiscretiontovoteforaproperlyqualifiedsubstitute.
TheCompanyhasenteredintoanarrangementagreementwithTrans-Orient(the“ArrangementAgreement”),pursuanttowhichthe
CompanywillacquirealltheissuedandoutstandingsharesofTrans-OrientonthebasisofoneCompanyshareforeach2.8shares
ofTrans-OrientbywayofaplanofarrangementundertheBusiness Corporations Act (British Columbia) (the “Acquisition”). Following
thecompletionoftheAcquisition,Trans-Orientwillbecomeawholly-ownedsubsidiaryoftheCompany.Pursuanttothetermsofthe
Arrangement Agreement, the Board will be reconstituted following the completion of the Acquisition such that three of the members
areindividualswhoarenomineesofTrans-OrientnotalreadyontheBoard,whichnomineesareexpectedtobeRonaldBertuzzi,
MichaelHartandBarryMacNeil(the“Trans-OrientNominees”).Asaresult,itisexpectedthattheTrans-OrientNomineeswillbe
appointed to the Board and that certain of the proposed directors elected at the Meeting will resign their positions in the event the
AcquisitioniscompletedtomakeroomfortheTrans-OrientNominees.IftheAcquisitionshallnotbecompleted,itisexpectedthat
thenomineessetforthinthisInformationCircularwill,upontheirre-election,continuetoserveasdirectorsoftheCompanyuntilthe
conclusion of the next annual general meeting of the Company or until their successors are elected or nominated.
Trans-Orient plans to hold a special meeting of its shareholders to approve the Acquisition and related matters on or about
December 9, 2009. Full details of the Acquisition are included in Trans-Orient’s management information circular dated
October30,2009,whichwillbeavailableforreviewfreeofchargefromSEDARatwww.sedar.comunderTrans-Orient’sprofile.
Compensation Of Executive OfficersExecutive Compensation
Setoutbelowareparticularsofcompensationpaidtothefollowingpersons(the“NamedExecutiveOfficers”or“NEOs”):
a) theCompany’schiefexecutiveofficer(“CEO”);
b) theCompany’schieffinancialofficer(“CFO”);
c) eachoftheCompany’sthreemosthighlycompensatedexecutiveofficers,orthreemosthighlycompensatedindividualsact-
inginasimilarcapacity,otherthantheCEOandCFO,attheendofthemostrecentlycompletedfinancialyearwhosetotal
compensationwas,individually,morethan$150,000forthatfinancialyear;and
d) any additional individuals for whom disclosure would have been provided under (c) except that the individual was not serving
asanexecutiveofficeroftheCompany,noractinginasimilarcapacity,attheendofthemostrecentlycompletedfinancialyear.
AsatMarch31,2009,theendofthemostrecentlycompletedfinancialyearoftheCompany,theCompanyhadoneNamedExecutive
Officer,whosenameandpositionsheldwithintheCompanyaresetoutunder“SummaryCompensationTable.”
10 Management Proxy Circular 2009
Compensation Discussion and Analysis
CompensationPhilosophyandObjectives
TheCompany’s executive compensation program is designed to attract,motivate and retain high performing senior executives,
encourageandrewardsuperiorperformanceandaligntheexecutives’interestswiththoseoftheCompany’sshareholders.Inorder
tomeettheCompany’sobjectives,theCompensationCommitteeisguidedby:
▪ providingexecutiveswithanequity-basedincentiveplan,namelyastockoptionplan;
▪ aligning employee compensation with company corporate objectives; and
▪ attractingandretaininghighlyqualifiedindividualsinkeypositions.
Compensation Elements
TheCompany’scompensationstructureisprimarilycomposedoftwocomponents–basesalary/bonus(consultingfees)andstock
options.
ThecompensationpayabletotheChiefExecutiveOfficerandotherexecutiveofficersisdeterminedbytheBoardaccordingtotheir
understanding as to the amount of compensation that is reasonable in the circumstances. The Board relies on objective criteria
whendeterminingexecutiveofficercompensation.ThesecriteriaincludetheattainmentoftheCompany’spre-setobjectivesforthe
previousfinancialyear,comparisonsofsalariespaidtootherexecutiveofficersintheindustryandanyadvicethatmaybegivenby
independent advisors and consultants to the Company.
Asa junior resourcecompany, stockoptiongrantsareconsideredasignificantcomponentof theCompany’soverall compensa-
tionstrategyinordertoappropriatelyincentivizetheNEOsinamannerthatisconsistentwithshareholders’interests.Optionsare
grantedtotheCompany’sexecutiveofficersunderitsShareOptionPlan.
Option-BasedAwards
TheCompanyestablishedtheShareOptionPlanonDecember19,2008inordertoattractandretaindirectors,executiveofficers
and employees, who will be motivated to work towards ensuring the success of the Company. Proposed grants are submitted to the
Boardforapproval.Priorgrantstoexecutiveofficersaretakenintoconsiderationwhenconsideringnewgrants.TheBoardadmin-
isterstheShareOptionPlanandhastheauthoritytoamendtheplan,subjecttoapplicableshareholderandregulatoryapprovals.
Summary Compensation Table
The following table is a summary of compensation paid to the NEO for the most recently completed financial year ended
March31,2009:
NameandPrincipalPosition Year Salary ($)
Share-based
awards ($)
Option-based
awards ($)(1)
Non-equity incentive plan
compensation ($)Pension
value ($)
All other compen-
sation ($)
Total compen-
sation ($)
Garth Johnson
CEO, CFO and
Corporate Secretary
Annual incentive
plans
Long-termincentive
plans
2009 175,000 — — — — — 25,000 200,000
Notes:
(1)TheCompanyusestheBlack-Scholesoptionpricingmodeltocalculatethefairvalueofoptionbasedawards.Themodelrequiressixkeyinputs:riskfreeinterestrate,exerciseprice,
market price at date of issue, expected dividend yield, expected life and expected volatility, all of which, other than the exercise price and market price, are estimates by management.
Management Proxy Circular 2009 11
Pension Plan Benefits
TheCompanyhasnotestablishedanypensionplansfordirectorsandexecutiveofficersthatprovideforpaymentsorbenefitsat,
following, or in connection with retirement.
Incentive Plan Awards
OutstandingShare-BasedAwardsandOptions-BasedAwards
Thefollowingtablesetsouttheoption-basedawardsmadebytheCompanytotheNEOwhichwereoutstandingasatMarch31,
2009.Furtherdetailsaboutthegrantingofoptionsanddeterminationoftheirtermsarediscussedunder“Option-BasedAwards.”
Option-BasedAwards Share-BasedAwards
Name
Numberofsecurities
underlying unexercised
options (#)Optionexercise
price ($)Optionexpiration
date
Value of unexercised in-the-money
options ($)(1)
Numberofshares or units of shares that
have not vested (#)
Market or payout
value of share-basedawards that
have not vested ($)
Garth Johnson 15,000 US$3.25 May 10, 2010 — — —
20,000 $6.50 Nov.22,2010 — — —
20,000 $3.50 Aug. 2, 2011 — — —
Notes:
(1)Valueofunexercisedin-the-moneyoptionsiscalculatedbaseduponthedifferencebetweenthemarketvalueoftheCompany’scommonsharesasatMarch31,2009($0.16closing
priceontheTSXVentureExchange)andtheexercisepriceoftheOptions.
Incentive-BasedAwards–ValueVestedorEarnedDuringtheYear
NameOption-basedawards–Value
vested during the year($)(1)
Share-basedawards–Valuevested during the year ($)
Non-equityincentiveplancompensation–Valueearned
during the year ($)
Garth Johnson — — —
Notes:
(1)Alloptionsvestoveraperiodof18monthsandaregrantedatthemarketprice.
DiscussionofPlan-BasedAwards
DuringthefinancialyearendedMarch31,2009,theCompanydidnotgrantanystockoptionstoitsNEOpursuanttotheCompany’s
ShareOptionPlan.
TheBoardadministerstheCompany’sShareOptionPlan,andassuch,allproposedstockoptiongrantsaresubmittedtotheBoard
fortheirapproval.Inconsideringnewgrants,theBoardconsiderspriorgrantsmadetodirectorsandexecutiveofficers.
12 Management Proxy Circular 2009
Termination of Employment, Change in Responsibilities and Employment Contracts
Otherthanasdisclosedbelow,therearenocontracts,agreements,orarrangements,withrespecttoanyNamedExecutiveOfficer
resultingfromtheresignation,retirementoranyotherterminationoftheNamedExecutiveOfficer’semploymentorfromachangeof
controlorfromachangeintheNamedExecutiveOfficer’sresponsibilitiesfollowingachangeincontrol.
OnSeptember1,2007,theCompanyenteredintoanexecutiveemploymentagreementwithMr.GarthJohnsontoreceiveanannual
salaryof$150,000onanon-goingbasisforhisservicesastheCompany’sChiefExecutiveOfficer,ChiefFinancialOfficerandCorpo-
rateSecretary.OnFebruary28,2008,theannualsalaryincreasedto$175,000.TheCompanymayterminatetheagreementatany
timewithoutcausebyprovidingthirtymonths’writtennoticetoMr.Johnson,payinlieuofsuchnoticeoranycombinationthereof.
Withinatwelvemonthperiodimmediatelyfollowingachangeofcontrol,theCompanyisrequiredtopayMr.Johnsonanamount
equal to his base salary for thirty months:
a) if the agreement is terminated by the Company without cause after a change of control;
b) ifMr.JohnsonisplacedinapositionoflesserstaturethanthatofPresidentandChiefExecutiveOfficer;
c) ifMr.JohnsonisassigneddutiessignificantlyinconsistentwiththepositionofChiefExecutiveOfficerimmediatelypriortothe
change of control;
d) if Mr. Johnson is assigned performance requirements or working conditions that are at variance with the performance require-
ments and working conditions in effect immediately preceding the change of control;
e) ifMr.JohnsonisaccordedtreatmentonageneralbasisthatisinderogationofhisstatusasChiefExecutiveOfficer;
f) oranyrequirementthatthelocationatwhichMr.Johnsonperformshisprincipaldutiesisoutsidearadiusoftwenty-fivemiles
from the location at which he performs such duties immediately before the change of control.
Director CompensationDirector Compensation Table
ThefollowingtableisasummaryofcompensationpaidtodirectorsoftheCompanyforthemostrecentlycompletedfinancialyear
endedMarch31,2009:
NameFees
earned ($)
Share-based
awards ($)
Option-based
awards ($)(1)
Non-equityincentive plan
compensation ($)
Pension value
($)
All othercomp-ensation ($)
Totalcomp-ensation ($)
Garth Johnson — — — — — — —
John Vaccaro $10,000 — — — — — $10,000
Dan Brown — — — — — — —
Giuseppe (Pino) Perone — — — — — — —
Notes:
(1)TheCompanyusestheBlack-Scholesoptionpricingmodeltocalculatethefairvalueofoptionbasedawards.Themodelrequiressixkeyinputs:riskfreeinterestrate,exerciseprice,
market price at date of issue, expected dividend yield, expected life and expected volatility, all of which, other than the exercise price and market price, are estimates by management.
Management Proxy Circular 2009 13
Discussion of Director Compensation
The executive directors of the Company do not receive compensation for services provided in their capacity as directors, including
any fees for serving on the Board or committees thereof or for attending Board meetings.
Directors may be compensated from time to time for consulting services provided. The compensation payable for consulting services
is determined by the Board according to their understanding as to the amount of compensation that is reasonable in the circum-
stances.Duringthemostrecentlycompletedfinancialyear,theaggregatedirectremunerationpaidorpayablebytheCompanytoits
directorsforconsultingserviceswas$Nil.
DirectorsarealsoeligibletoreceivestockoptionsgrantedpursuanttotheCompany’sShareOptionPlan.TheBoard,asawhole,
determinesstockoptiongrantsforeachdirector.Duringthemostrecentlycompletedfinancialyear,theCompanydidnotgrantincen-
tive stock options to its directors.
TheCompanycommencedpayingMr.JohnVaccarocompensationof$1,000permonthforhisservicesasanon-executivedirector,
auditcommitteememberandinconsiderationthatnostockoptionsweregrantedtohim,effectiveJune11,2008.Mr.Vaccarowill
alsoreceivealumpsumpaymentof$5,000foradditionaldutiesasthesolespecialcommitteememberpertainingtotheCompany’s
proposed Acquisition. Further details of the Acquisition are set out above in the section entitled “Election of Directors.”
Messrs.BrownandPeronearealsoemployeesofDLJManagementCorp.(“DLJ”)thatprovidesofficespacemanagement,account-
ing and reporting services to the Company, which is described in more detail below under the heading “Interest of Informed Persons
in Material Transactions.”
OutstandingShare-BasedAwardsandOptions-BasedAwards
The following table sets out the option-based awards made by the Company to the directors which were outstanding as at
March31,2009.
Name
Numberof securities underlying
unexercisedOptions(#)Option
exercise price ($)Option
expiration dateValue of unexercised
in-the-moneyoptions($)(1)
Garth Johnson 15,000 US$3.25 May 10, 2010 —
20,000 $6.50 Nov.22,2010 —
20,000 $3.50 Aug. 2, 2011 —
John Vaccaro — — — —
Dan Brown 5,000 $3.50 Aug. 2, 2011 —
Giuseppe (Pino) Perone — — — —
Notes:
(1)Valueofunexercisedin-the-moneyoptionsiscalculatedbaseduponthedifferencebetweenthemarketvalueoftheCompany’scommonsharesasatMarch31,2009($0.16closing
priceontheTSXVentureExchange)andtheexercisepriceoftheoptions.
14 Management Proxy Circular 2009
Incentive-BasedAwards–ValueVestedorEarnedDuringtheYear
Thefollowingtablesetsouttheaggregatedollarvaluethatwouldhavebeenrealizedbyeachdirectorifheexercised,ontheappli-
cablevestingdates,thoseoptionsheldbyhimunderoption-basedawards,whichvestedduringthemostrecentlycompletedfinan-
cial year.
NameOption-basedawards–Value
vested during the year ($)Share-basedawards–Value
vested during the year ($)
Non-equityincentiveplancompensation–Value
earned during the year ($)
Garth Johnson — — —
John Vaccaro — — —
Dan Brown — — —
Giuseppe (Pino) Perone — — —
Appointment Of AuditorThemanagementoftheCompanyintendstonominateDeVisserGrayLLP(“DeVisserGray”)ofVancouver,BritishColumbia,forre-
appointment as auditor of the Company. Proxies given pursuant to the solicitation by the management of the Company will, on any
poll,bevotedasdirectedand,ifthereisnodirection,forthere-appointmentofDeVisserGrayasauditoroftheCompanytohold
officeuntilthecloseofthenextannualgeneralmeetingoftheCompany,ataremunerationtobefixedbythedirectors.DeVisserGray
wasfirstappointedasauditoroftheCompanyonMarch17,2004.
Audit Committee And Relationship With AuditorThe Company is a “venture issuer” as that term is defined under National Instrument 52-110Audit Committee (“NI 52-110”).
NI52-110requirestheCompany,asaventureissuer,todiscloseannuallyinitsInformationCircularcertaininformationconcerning
the constitution of its audit committee and its relationship with its independent auditor, as set forth in the following.
TheAuditCommittee’sCharter
Theauditcommitteehasacharter.Acopyoftheauditcommittee’scharterisattachedtotheCompany’sInformationCirculardated
July 15, 2005, and is incorporated by reference herein and may be downloaded without charge from SEDAR at www.sedar.com.
Composition of the Audit Committee
TheCompanyisrequiredundertherulesoftheTSXVentureExchange(“TSX-V”)tohaveanauditcommitteecomprisedofnotless
thanthreedirectors,amajorityofwhomarenotofficers,controlpersonsoremployeesoftheCompanyoranaffiliateoftheCompany.
TheCompany’scurrentmembersoftheauditcommitteeareMessrs.JohnVaccaro,DanBrownandGiuseppe(Pino)Perone.
TheCompanyisrequiredtodisclosewhetherthemembersofitsauditcommitteeare“independent”and“financiallyliterate”within
themeaningofNI52-110.
NI52-110providesthatamemberofanauditcommitteeis“independent”ifthememberhasnodirectorindirectmaterialrelation-
shipwiththeCompany,whichcouldintheviewoftheBoard,reasonablyinterferewiththeexerciseofthemember’sindependent
judgment.Mr.VaccaroisindependentwithinthemeaningNI52-110.Messrs.BrownandPeronearenotindependentwithinthe
meaningNI52-110becausetheyareemployeesofDLJthatprovidesofficespacemanagement,accountingandreportingservices
to the Company, which is described in more detail below under the heading “Interest of Informed Persons in Material Transactions.”
Management Proxy Circular 2009 15
NI52-110providesthatanindividualis“financiallyliterate”ifheorshehastheabilitytoreadandunderstandasetoffinancial
statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and
complexityoftheissuesthatcanreasonablybeexpectedtoberaisedbytheCompany’sfinancialstatements.Allmembersofthe
auditcommitteeareconsideredtobe“financiallyliterate”inthecontextoftheCompany’soperations.
AuditCommitteeOversight
TheauditcommitteehasnotmadeanyspecificrecommendationstotheBoardtonominateorcompensateanyexternalauditor.
Relevant Education and Experience
Relevant information regarding the education and experience of the members of the audit committee is set out above in the section
entitled“InformationRegardingManagement’sNomineesforElectiontotheBoard.”
Reliance on Certain Exemptions
SincethecommencementoftheCompany’smostrecentlycompletedfinancialyear,theCompanyhasnotreliedon:
a) theexemptioninSection2.4(DeMinimisNon-auditServices)ofNI52-110;or
b) anexemptionfromNI52-110,inwholeorinpart,grantedunderPart8(Exemptions)ofNI52-110.
Pre-ApprovalPoliciesandProcedures
Theauditcommitteehasnotadoptedspecificpoliciesandproceduresfortheengagementofnon-auditservices.
External Auditor Service Fees
Theauditcommitteehasreviewedthenatureandamountofthenon-auditedservicesprovidedbyDeVisserGrayandtheCompany’s
NewZealandauditorBDOSpicers,CharteredAccountantsandAdvisors (“BDOSpicers”), toensureauditor independence.Fees
incurredwithDeVisserGrayandBDOSpicersforauditandnon-auditservicesinthelasttwofiscalyearsforauditfeesareoutlined
in the following table:
NatureofServicesFees Paid to Auditor in
YearEndedMarch31,2008Fees Paid to Auditor in
YearEndedMarch31,2009
Audit Fees (1) $42,104 $36,196
Audit-RelatedFees(2) $7,674 $788
Tax Fees (3) $2,000 $2,000
AllOtherFees(4) — —
Total $51,778 $38,984
Notes:
1) “AuditFees”includefeesnecessarytoperformtheannualauditandquarterlyreviewsoftheCompany’sconsolidatedfinancialstatementsandincludeboththefeesofthe
Company’sprincipalauditor,DeVisserGray,andBDOSpicers.Auditfeesalsoincludefeesforreviewoftaxprovisionsandforaccountingconsultationsonmattersreflectedinthe
financialstatements.AuditFeesalsoincludeauditorotherattestservicesrequiredbylegislationorregulation,suchascomfortletters,consents,reviewsofsecuritiesfilingsand
statutory audits.
2) “Audit-RelatedFees”includeservicesthataretraditionallyperformedbytheauditor.Theseaudit-relatedservicesincludeemployeebenefitaudits,duediligenceassistance,
accounting consultations on proposed transactions, internal control reviews and audit or attest services not required by legislation or regulation.
3) “TaxFees”includefeesforalltaxservicesotherthanthoseincludedin“AuditFees”and“Audit-RelatedFees.”Thiscategoryincludesfeesfortaxcompliance,taxplanningandtax
advice. Tax planning and tax advice includes assistance with tax audits and appeals, tax advice related to mergers and acquisitions, and requests for rulings or technical advice from
tax authorities.
4) “AllOtherFees”includeallothernon-auditservices.
16 Management Proxy Circular 2009
Exemption
TheCompanyisrelyingontheexemptionprovidedbysection6.1ofNI52-110whichprovidesthattheCompany,asaventureissuer,
isnotrequiredtocomplywithPart3(CompositionoftheAuditCommittee)andPart5(ReportingObligations)ofNI52-110.
Corporate Governance DisclosureGeneral
EffectiveJune30,2005,National Instrument58-101DisclosureofCorporateGovernancePractices (“NI58-101”)andNational
Policy58-201CorporateGovernanceGuidelines(“NP58-201”)wereadoptedineachoftheprovincesandterritoriesofCanada.
NI58-101requires issuerstodisclosethecorporategovernancepracticeswithrespect tocorporategovernanceguidelines(the
“Guidelines”)thattheyhaveadopted.NP58-201providesguidanceoncorporategovernancepractices.
TheBoardunderstandsthatgoodcorporategovernanceimprovescorporateperformanceandbenefitsallshareholders.Thissection
setsouttheCompany’sapproachtocorporategovernanceandaddressestheCompany’scompliancewithNI58-101.
1. Board of Directors
Directors are considered to be independent if they have no direct or indirect material relationship with the Company. A “material
relationship”isarelationshipwhichcould,intheviewoftheCompany’sBoard,bereasonablyexpectedtointerferewiththeexercise
ofadirector’sindependentjudgmentandincludestheholdingofanexecutiveofficerposition.
TheBoardfacilitates its independentsupervisionovermanagementbyconductingaquarterlyreviewoftheCompany’sfinancial
statements and management discussion and analysis as well as requiring material transactions to be approved by the Board prior
to the transaction taking place.
The independent member of the Board is Mr. John Vaccaro. Mr. Garth Johnson is not an independent member of the Board, as Mr.
JohnsonisthecurrentChiefExecutiveOfficer,ChiefFinancialOfficerandCorporateSecretaryoftheCompany.Messrs.DanBrown
andGiuseppe(Pino)PeronearenotclassifiedasindependentmembersoftheBoardastheiremployer,DLJ,providesofficespace
management, accounting and reporting services to the Company on a consulting basis.
2. Directorships
Mr.GarthJohnsonwasappointedasthePresidentofTrans-OrientonJanuary10,2008,andasChiefExecutiveOfficeranddirector
ofTrans-OrientonMarch13,2008.
3. OrientationandContinuingEducation
The Board provides ad hoc orientation for new directors. Continuing education opportunities are available to Board members as
requested.Onoccasionswhereitisconsideredadvisable,theBoardwillprovidedirectorswithinformationregardingtopicsofgen-
eralinterest,suchasfiduciarydutiesandcontinuousdisclosureobligations.TheBoardalsoensuresthateachdirectorisup-to-date
withcurrentinformationregardingthebusinessoftheCompany,therolethedirectorisexpectedtofulfillandbasicproceduresand
operations of the Board. Board members are also given access to management and other employees and advisors, who can answer
any questions that may arise. Management also updates the Board concerning the status of the Company and, in respect of mate-
rialtransactions,includingreviewoffinancialstatements,providesopportunitiesforBoardreviewandapprovalbywayofdirectors’
consent resolutions.
Management Proxy Circular 2009 17
4. Ethical Business Conduct
TheBoardisoftheviewthatthefiduciarydutiesplacedonindividualdirectorsbytheCompany’sgoverningcorporatelegislationand
thecommonlawandtherestrictionsplacedbyapplicablecorporatelegislationonanindividualdirector’sparticipationindecisions
oftheBoardinwhichthedirectorhasaninteresthavebeensufficienttoensurethattheBoardoperatesreasonablyindependentlyof
managementandinthebestinterestsoftheCompany.Nevertheless,theCompanyhasadoptedaformalwrittencodeofethics(the
“CodeofEthics”),whichsetsouttheethicalandbehaviouralstandardsexpectedoftheCompany’sdirectors,officers,employees
andcontractors.Thesestandardsincludeintegrityandobjectivity,fairdealingandduecare,properuseoftheCompany’sassets,
property and information and compliance with applicable laws, regulations and rules. The Company will provide a copy of the Code of
Ethics,freeofcharge,uponrequesttotheCompany(telephonenumber:(604)609-3350;faxnumber:(604)682-1174).
5. NominationofDirectors
TheBoardhasnotadoptedaformalprocessfornominatingnewdirectors.TheBoardconsidersitssizeeachyearwhenitconsiders
the number of directors to recommend to the shareholders for election at the annual meeting of shareholders, taking into account
thenumberrequiredtocarryouttheBoard’sdutieseffectivelyandtomaintainadiversityofviewsandexperience.
The Board does not have a nominating committee, and these functions are currently performed by the Board as a whole. However, if
thereisasignificantincreaseinthenumberofdirectorsrequiredbytheCompany,thispolicywillbereviewed.
6. Compensation
AsofOctober26,2009thecompensationcommitteeconsistsofMessrs.DanBrown(chairman)andGiuseppe(Pino)Perone,and
nomemberisanofficeroremployeeoftheCompanyoranyofitssubsidiaries.Thecompensationcommitteehasacharterthat
mandates it to recommend to the Board the form and amount of compensation paid by the Company to directors for service on the
BoardandonBoardcommitteesandtorecommendthestructureoftheCompany’scompensationprograms,bothformanagement
andstaff,includingbasesalaries,perquisitesandlongandshort-termincentivecompensation,includingstockoptions.Thecom-
pensationcommitteeisalsomandatedtoreviewtheperformanceoftheChiefExecutiveOfficerandChiefFinancialOfficer.Acopy
ofthecompensationcommittee’scharterisattachedtotheCompany’sAnnualReportonForm20-FdatedMarch31,2006,andis
incorporated by reference herein and may be downloaded without charge from SEDAR at www.sedar.com.
7. OtherBoardCommittees
TheBoardhasnocommitteesotherthantheauditandcompensationcommittees.InlightoftheCompany’smodestcapitalization
andsmallBoardsizeitconsidersthistobereasonable.
8. Assessments
The Board monitors the adequacy of information given to directors, communication between the Board and management and the
strategic direction and processes of the Board.
18 Management Proxy Circular 2009
Securities Authorized For Issuance Under Equity Compensation PlansTheCompanyhasnocompensationplansunderwhichequitysecuritiesareauthorized for issuance,except for theshareholder
approvedShareOptionPlanincorporatedbyreferencetotheInformationCirculardatedDecember19,2008.AsatMarch31,2009,
there are no share purchase warrants outstanding.
Equity Compensation Plan Information
ThefollowingtablesetsouttheequitycompensationplaninformationasofMarch31,2009:
Numberofsecuritiestobeissued upon exercise of
outstanding options, warrants and rights
Weighted-averageexercisepriceof outstanding options, warrants
and rights
Numberofsecuritiesremainingavailable for future issuance under equity compensation plans (excluding securities
reflectedincolumn(a))Plan Category (a) (b) (c)
Equity compensation
plans approved by
securityholders 222,000 $3.78 1,458,972
Equity compensation
plans not approved by
securityholders — — —
Total 222,000 $3.78 1,458,972
Indebtedness Of Directors And Executive OfficersNodirector,proposednomineeforelectionasdirector,executiveofficerortheirrespectiveassociatesoraffiliates,othermanage-
mentoftheCompany,employees,orformerexecutiveofficers,directorsoremployeeswereindebtedtotheCompanyoritssubsidiar-
iesasattheendofthemostrecentlycompletedfinancialyearorasatthedatehereof.
Interest Of Informed Persons In Material TransactionsAninformedpersonisonewho,generallyspeaking,isadirectororofficerora10%shareholderoftheCompany.Totheknowledge
of management of the Company, no informed person or nominee for election as a director of the Company or a subsidiary of the
Companyoranyassociateoraffiliateofanyinformedpersonorproposeddirectorhadanymaterialinterest,directlyorindirectly,in
any transaction or proposed transaction which has materially affected or would materially affect the Company or any of its subsidiar-
iesduringtheyearendedMarch31,2009,orhasanyinterestinanymaterialtransactioninthecurrentyearotherthanassetout
below or elsewhere in this Information Circular.
OnNovember1,2008theCompanyenteredintoaconsultingagreementwithDLJunderwhichDLJreceivesmonthlycompensation
of$2,750forrentalofcorporateofficespaceplustheCompany’spro-ratashareofallothermonthlygeneralandadministrative
coststhatDLJincursforaperiodoftwoyears(the“ConsultingAgreement”).TheConsultingAgreementrelatestotheprovisionof
officespacemanagement,accountingandreportingservicestotheCompany.PursuanttoanaddendumoftheConsultingAgree-
mentdatedJune1,2009,DLJ’smonthlycompensationfromtheCompanyforrentalofcorporateofficespacewasincreasedto
Management Proxy Circular 2009 19
$3,000.DLJisa100%ownedsubsidiaryofTrans-Orientthatprovidesofficespacemanagement,accountingandreportingservices
topublicandprivatecompaniesonafixedandcostrecoverybasis.Mr.DanBrownholdsacorporateaccountingrolewithDLJand
Mr.Giuseppe(Pino)PeroneholdsapositionwithDLJaslegalcounsel.AcopyoftheConsultingAgreementisavailablefordownload
without charge from SEDAR at www.sedar.com.
Management ContractsManagement functions of the Company and its subsidiaries are not, to any material degree, performed by anyone other than direc-
torsorNamedExecutiveOfficersoftheCompany.
Particulars Of Special Matters To Be Acted Upon ApprovaloftheShareOptionPlan
AttheCompany’sannualgeneralmeetingonDecember19,2008,theCompany’sshareholdersre-approvedtheCompany’sShare
OptionPlaninwhichthenumberofCommonSharesreservedforissuanceasshareincentiveoptionsisequalto10%oftheCom-
pany’sissuedandoutstandingCommonSharesatanytime.Thisisconstitutedasa“rolling”asopposedtoa“fixednumber”plan.
AnypreviouslygrantedoptionsaregovernedbytheShareOptionPlan,andifanyoptionsgrantedexpireorterminateforanyreason
withouthavingbeenexercisedinfull,theunpurchasedCommonShareswillagainbeavailableundertheShareOptionPlan.
Atpresent,theCompanyhas16,809,722CommonSharesissuedandoutstanding.Thismeansthat1,680,972CommonSharesare
currentlyavailableforoptionsgrantedundertheShareOptionPlanatthedatehereof.Asaresult,thenumberofoptionscurrently
outstandingis222,000,andthenumberavailableforgrantis1,458,972.
PursuanttothepoliciesoftheTSX-Vgoverningshareoptions,theShareOptionPlanmustbere-affirmedannuallybyshareholders
andanyamendmentofitmustbeapprovedbytheTSX-Vandbyshareholders.TheBoarddoesnotproposeanyamendmentstothe
ShareOptionPlan,anditistheresponsibilityoftheBoardtoensurethattheprovisionsoftheShareOptionPlanareadheredto.
TheoptionsundertheShareOptionPlanarenon-assignableandnon-transferable,andhaveatermofupto5years,terminating
within 90 days after the optionee ceases to be associated with the Company. Any previously granted options are governed by the
ShareOptionPlan,andifanyoptionsgrantedexpireorterminateforanyreasonwithouthavingbeenexercisedinfull,theunpur-
chasedCommonShareswillagainbeavailableundertheShareOptionPlan.Theexercisepriceswillbeestablishedatthetimethe
optionsaregranted,whichissubjecttoaminimumexercisepriceofnotlessthantheDiscountedMarketPriceasdefinedinthe
policiesoftheTSX-V.TheoptionsundertheShareOptionPlanmaybesubjecttovestingprovisionsasrequiredbythepoliciesof
theTSX-V,ifapplicable,andasmayotherwisebedeterminedbytheBoard.TheShareOptionPlanmustbere-affirmedannuallyby
shareholdersandanyamendmentofitmustbeapprovedbytheTSX-Vandbyshareholders.
AcopyoftheShareOptionPlanwillbeavailableforinspectionattheMeeting,andmaybedownloadedwithoutchargefromSEDAR
at www.sedar.com.
20 Management Proxy Circular 2009
Recommendation
Inordertocontinuetoprovideincentivetodirectors,officers,employees,managementandotherswhoprovideservicestothe
Company to act in the best interests of the Company, management of the Company recommend that shareholders approve the
belowresolution(the“OptionResolution”)re-adoptingtheShareOptionPlan.
AttheMeeting,shareholderswillbeaskedtoconsiderandifthoughtfittopass,withorwithoutvariation,anordinaryresolution
as follows:
“ResolvedthattheCompanyapprovethecontinuationofitsexistingShareOptionPlan,whichistoremainineffectuntil
furtherratificationisrequiredunderapplicableregulatoryapproval.”
TheBoardrecommendsthat theshareholdersvote in favourof theOptionResolution.Unlesssuchauthority iswithheld, the
personsnamedintheenclosedProxyintendtovoteFORtheapprovaloftheOptionResolution.
Other MattersThe Board is not aware of any other matters which they anticipate will come before the Meeting as of the date of mailing of
this Information Circular. If any other matters properly come before the Meeting, the Common Shares represented by the Proxy
solicited hereby will be voted on such matters in accordance with the best judgment of the persons voting the Proxy, subject to
instructions on the face of the Proxy to the contrary.
Additional InformationFinancialinformationisprovidedintheCompany’scomparativefinancialstatementsandmanagementdiscussionandanalysis
foritsmostrecentlycompletedfinancialyear.AdditionalinformationisalsoavailableonSEDARatwww.sedar.com and may be
downloaded free of charge.
TheCompanywillprovidetoanyshareholder,freeofcharge,uponrequesttotheCompany,telephonenumber(604)609-3350
orfaxnumber(604)682-1174,acopyofanyyearendandinterimfinancialstatementsoftheCompanyfiledwiththeapplicable
securities regulatory authorities during the past two years.
Shareholder ProposalsPursuant to Canadian law, shareholder proposals to be considered for inclusion in the Information Circular for the 2010 annual
meeting of the Company (expected to be held in December 2010) must be received by the Company on or before the close of
businessonSeptember17,2010.
Board ApprovalThe contents of this Information Circular and its distribution to shareholders have been approved by the Board.
DATEDatVancouver,BritishColumbiaOctober26,2009.
Garth Johnson
ChiefExecutiveOfficer
Corporate Office2901-1050BurrardStreetVancouver, British ColumbiaV6Z2S3Canada
Phone(604)609-3350Fax(604)682-1174
Technical Headquarters233BroadwayP.O.Box262Stratford4332Taranaki,NewZealand
Phone(06)765-6643Fax(06)765-6654
prin
ted
in C
anad
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www.tagoil.com