Dear Fellow Shareholders,

Native American Energy Group is currently engaged in oil and gas projects in the Williston Basin with an emphasis on high-grade, light sweet crude oil. Its lead project involves enhancing and reactivating many of the abandoned and previously shut-in oil & gas wells on and around the Fort Peck Reservation from our portfolio of historically producing wells. Management strongly believes it can establish a 15 to 20 year cash flow for the Company by introducing our proprietary well-enhancement process.

For the last 2 years, Raj Nanvaan and I have worked very hard in order to assemble and retain a competent field crew for our Montana oil & gas operations. Together, we are working as a unified team to accomplish our business goals and to build on our achievements. We built a company that people can rely on. Although we are an energy company, a by-product of our efforts helps the Native American communities realize true energy independence & economic development. In the past, oil rich tribes across the United States more often then not were taken advantage of by oil companies that promised to do the very same thing. Therefore it shouldn’t be difficult to understand how hard it has been for us to gain their trust and confidence. Currently, as we travel across the Country visiting with these communities we find poverty and everything that goes with it. Crystal Meth has spread rapidly among their youth. Diabetes and alcoholism are diseases that plague these reservations as well. Our team has made a conscious effort to bring awareness to these issues. We may be a small voice in a vast sea of corruption and manipulation, however, it is apparent that our message is being heard.

WEBSITE

We are currently preparing the launch of a redesigned company web site, which will expand on our “No Tribe Left Behind” Program, an effort that supports economic development on the reservations. This will be a dynamic and information-rich resource that will also contain updated pictures, information, and video clips of our operations in Montana and nationally. The redesigned website will take about two months, however, we will be changing our current website to support some of the video temporarily until the new website is complete.

STRATEGY & PLANNING – MONTANA

Raj and I just returned from a week long strategy & planning session with our crew in Montana. We have approved their budget for this rework season, once our first Workover Rig arrives in the area. While we were there, we were able to visit the Bakken play just south of us in Richland County where we captured some great footage of our Senior Geologist & Petroleum Engineer, Tony Johnson, as he described the development of the field and the trend heading towards our leased properties. We feel this will give shareholders, investors and our affiliated audience an informative and intimate look at our program and our vision for the future in ways that a formal press releases cannot.

OGLALA LAKOTA NATION – HOUSING PROJECT

We are headed back to the Midwest with Richard Ross for a Friday meeting with the Oglala Lakota Tribe in South Dakota to address their drastic housing shortage problem. We needed to reschedule our meeting with the Tribal Executive Board due to scheduling conflicts. We are expecting to reach an agreement at this meeting as per our preliminary discussions. While there, we also intend to fully document the sub-standard, overcrowded living conditions on the reservation. This documentation will be a part of our due-diligence to be provided to the various international organizations interested in funding our housing projects. NAEG has the technology and the license to build safe, decent, affordable, energy-efficient homes.

WORKOVER RIG OPERATOR

Rig Superintendent, Monte Wilson, is on stand-by and is waiting to be relocated in time for the delivery of the Wilson 35 Workover Rig. Monte comes highly recommended, with 25 years of experience operating and managing workover operations. He has supervised 4 rigs in Oklahoma and Kansas.

WORKOVER RIG #1 - WILSON 35

The Wilson 35 is a double double work-over rig capable of pulling rods and tubings for repair of faulty pumps as well as tubing leaks for increased production. It is also capable of drilling concrete plugs down hole to reopen plugged wells with assistance of a power swivel and mud pump. We are awaiting delivery dates on both the Wilson and the Cardwell. The parts for the Wilson have been back-ordered and delivery of those parts will determine the delivery date of our rig to the well site. As soon as this information becomes available, we will release this information via an official announcement.

WORKOVER RIG#2 - CARDWELL K210A

We have a Cardwell KB200 currently being upgraded to a Triple Double – Double Drum Cardwell K210A Workover Rig capable of servicing wells up to a minimum 10,000 feet. The mast specifications are 96 feet with 180,000 lbs static hook load. The front and rear axles have the capacity of 40,000 lbs. The 627 Allison transmission is being replaced with a 750 HP Allison and the engine is a turbo charged 8V92TA Detroit.

Photos of 2 rigs very similar to ours can be seen at the following link:

www.nativeamericanenergy.com/workoverrigs.pdf

POTENTIAL ACQUISITIONS

Potential future oil & gas lease acquisitions that we have identified are located in the Wyoming Powder River Basin, Oklahoma, Kansas and Alaska. Any one of these assets would represent a meaningful addition to our current portfolio.

ALASKA CBM JOINT VENTURE

We have already concluded negotiations for a joint venture on an Alaska Coal Bed Methane Gas project that has been on our list of priorities since 2006. Our attorneys are finalizing the paperwork and once these agreements are in place, it will be announced through an official announcement as well.

ALTERNATIVE ENERGY

We are transforming our alternative energy division from concept to application. Since the announcement of our “NO TRIBE LEFT BEHIND” PROGRAM, many supporters throughout the country have contacted us to enroll in the effort to either contribute or benefit from the alternative energy technologies and projects that have been presented to us. The response has been so overwhelming that we are now in the process of creating a separate division and task force to expand the network and to secure potential projects in Indian country based on demographics and feasibility. Such task forces will assess the resources available and implement the most viable solution to meet the energy demands of that specific tribe. Although this a massive undertaking we are very confident that with the support of the various tribes, and more importantly, our financial partners, we will be successful in establishing these renewable energy projects throughout the country and therefore will create an additional revenue stream for the Company. We are currently working on a very promising relationship, which will not only provide the ability to create alternative energy, but that also addresses the most important current issue which is transmission & capacity.

Joseph D'Arrigo
President & CEO
Native American Energy Group, Inc.

NAEG's previous achievements can be accessed on the Investor Relations page below:

http://www.nativeamericanenergy.com/investorrelations.htm