<SUBMISSION>
<ACCESSION-NUMBER>0001175710-06-000231
<TYPE>6-K
<PUBLIC-DOCUMENT-COUNT>5
<PERIOD>20060815
<FILING-DATE>20060817
<DATE-OF-FILING-DATE-CHANGE>20060816
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>ASPEN GROUP RESOURCES CORP
<CIK>0001023947
<ASSIGNED-SIC>1382
<IRS-NUMBER>980164357
<STATE-OF-INCORPORATION>A6
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>6-K
<ACT>34
<FILE-NUMBER>001-13509
<FILM-NUMBER>061039234
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>ONE NORTH HUDSON
<STREET2>SUITE 1000
<CITY>OKLAHOMA CITY
<STATE>OK
<ZIP>73102
<PHONE>4052788800
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>ONE NORTH HUDSON
<STREET2>SUITE 1000
<CITY>OKLAHOMA CITY
<STATE>OK
<ZIP>73102
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>COTTON VALLEY RESOURCES CORP
<DATE-CHANGED>19960930
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>aspen6k.htm
<DESCRIPTION>ASPEN GROUP RESOURCES CORP.
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>SECURITIES AND EXCHANGE COMMISSION</TITLE>
<META NAME="author" CONTENT="Daniel Miller">
<META NAME="date" CONTENT="08/12/2005">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<A NAME="DocsID"></A><P style="line-height:14pt; margin-top:5pt; margin-bottom:5pt; font-size:12pt" align=center><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, D.C. 20549</B></P>
<P style="line-height:16pt; margin-top:5.85pt; margin-bottom:5.85pt; font-size:14pt" align=center><B>FORM 6-K</B></P>
<P style="line-height:13pt; margin-top:4.6pt; margin-bottom:4.6pt; font-size:11pt" align=center><B>Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 under the Securities Exchange Act of 1934</B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=center>For the month of August 2006</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=center>Commission File Number: &nbsp;0-28814</P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>Aspen Group Resources Corporation</B></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>One North Hudson, Suite 1000</P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>Oklahoma City, Oklahoma 73102</P>
<P style="margin-top:0pt; margin-bottom:12pt" align=center><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=center>Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=center>Form 20-F<U>&nbsp;&nbsp;&nbsp;X&nbsp;&nbsp;&nbsp; </U>Form 40-F ______</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=center>Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=center>Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=center>Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=center>Yes _____ No <U>&nbsp;&nbsp;&nbsp;X&nbsp;&nbsp;&nbsp;</U></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>If &#147;Yes&#148; is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________</P>
<P style="margin:0pt"><BR>
<BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>INDEX</B></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt">The following documents are filed as part of this Form 6-K:</P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=66></TD><TD width=354></TD></TR>
<TR><TD valign=top><P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><U>Exhibit</U></P>
</TD><TD valign=top><P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt"><U>Description</U></P>
</TD></TR>
<TR><TD valign=top><P style="line-height:14pt; margin-top:6pt; margin-bottom:0pt; font-size:12pt" align=center>99.1</P>
</TD><TD valign=top><P style="line-height:14pt; margin-top:6pt; margin-bottom:0pt; font-size:12pt">June 30, 2006 financial statements</P>
</TD></TR>
<TR><TD valign=top><P style="line-height:14pt; margin-top:6pt; margin-bottom:0pt; font-size:12pt" align=center>99.2</P>
</TD><TD valign=top><P style="line-height:14pt; margin-top:6pt; margin-bottom:0pt; font-size:12pt">Management&#146;s Discussion &amp; Analysis</P>
</TD></TR>
<TR><TD valign=top><P style="line-height:14pt; margin-top:6pt; margin-bottom:0pt; font-size:12pt" align=center>99.3</P>
</TD><TD valign=top><P style="line-height:14pt; margin-top:6pt; margin-bottom:0pt; font-size:12pt">Certificates</P>
</TD></TR>
<TR><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD></TR>
<TR><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD></TR>
<TR><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt" align=center><BR>
<BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt; page-break-before:always" align=center><B>SIGNATURES</B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; text-indent:72pt; font-size:12pt">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:12pt; font-size:12pt">Date: August 16, 2006</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:24pt; padding-left:216pt; font-size:12pt"><B>Aspen Group Resources Corporation</B></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:216pt; font-size:12pt">By: &nbsp;</P>
<P style="line-height:14pt; margin:0pt; padding-left:216pt; text-indent:36pt; font-size:12pt"><U>/s/ Robert Calentine</U></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:216pt; font-size:12pt">Name:</P>
<P style="line-height:14pt; margin:0pt; padding-left:216pt; text-indent:36pt; font-size:12pt">Robert Calentine</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:216pt; font-size:12pt">Title</P>
<P style="line-height:14pt; margin:0pt; padding-left:216pt; text-indent:36pt; font-size:12pt">Chief Executive Officer</P>
<P style="margin:0pt"><BR>
<BR></P>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>f20062qaspengroupfinstatemen.htm
<DESCRIPTION>SECOND QUARTER FINANCIAL STATEMENTS
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>ASPEN GROUP RESOURCES CORPORATION</TITLE>
<META NAME="author" CONTENT="Prospect/Cubacan/Endeavor">
<META NAME="date" CONTENT="08/09/2006">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:36pt; padding-right:36pt; font-size:12pt" align=center><B>ASPEN GROUP RESOURCES CORPORATION</B></P>
<P style="line-height:14pt; margin:0pt; padding-left:36pt; padding-right:36pt; font-size:12pt" align=center><B>AND SUBSIDIARIES</B></P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:36pt; padding-right:36pt; font-size:12pt" align=center><B>UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS</B></P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:36pt; padding-right:36pt; font-size:12pt" align=center><B>JUNE 30, 2006</B></P>
<P style="margin:0pt"><BR>
<BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always" align=center><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><B>ASPEN GROUP RESOURCES CORPORATION</B></P>
<P style="margin:0pt"><B>AND SUBSIDIARIES</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><B>INDEX</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; text-indent:416.35pt"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Page No.</B></P>
<P style="margin:0pt"><B>FINANCIAL INFORMATION</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><B>Consolidated Financial Statements (unaudited)</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt">Consolidated Balance Sheet as of</P>
<P style="margin-top:0pt; margin-bottom:-12pt">June 30, 2006 and 2005 (unaudited)</P>
<P style="margin:0pt; text-indent:463pt">3</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt">Consolidated Statements of Operations for the</P>
<P style="margin-top:0pt; margin-bottom:-12pt">six months ended June 30, 2006 and 2005 (unaudited)</P>
<P style="margin:0pt; text-indent:463pt">4</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt">Consolidated Statements of Cash Flows for the</P>
<P style="margin-top:0pt; margin-bottom:-12pt">six months ended June 30, 2006 and 2005 (unaudited)</P>
<P style="margin:0pt; text-indent:463pt">5</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><B>Nature of Business and Basis of Preparation and Presentation</B></P>
<P style="margin-top:0pt; margin-bottom:-12pt">Nature of Business</P>
<P style="margin:0pt; text-indent:463pt">6</P>
<P style="margin-top:0pt; margin-bottom:-12pt">Financial Statement Presentation</P>
<P style="margin:0pt; text-indent:463pt">6</P>
<P style="margin-top:0pt; margin-bottom:-12pt" align=justify>Restricted Cash</P>
<P style="margin:0pt; text-indent:463pt" align=justify>6</P>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt"><B>Earnings Per Share</B></P>
<P style="margin:0pt; text-indent:463pt">6</P>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt"><B>Common Stock Issued</B></P>
<P style="margin:0pt; text-indent:463pt">6</P>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt"><B>Operations</B></P>
<P style="margin:0pt; text-indent:463pt">7</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><B>Other Information</B></P>
<P style="margin-top:0pt; margin-bottom:-12pt">Safe Harbor Statement</P>
<P style="margin:0pt; text-indent:463pt">7</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<A NAME="node3"></A><A NAME="node4"></A><P style="margin:0pt"><BR>
<BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="line-height:13pt; margin:0pt; font-size:11pt; page-break-before:always" align=center><B>ASPEN GROUP RESOURCES CORPORATION AND SUBSIDIARIES</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt" align=center><B>CONSOLIDATED BALANCE SHEET</B></P>
<P style="margin:0pt" align=center><B>June 30, 2006 &nbsp;&nbsp;(Unaudited</B>)</P>
<P style="margin:0pt" align=center>(<B>Expressed in US Dollars)</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt" align=center><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=297.9></TD><TD width=11.8></TD><TD width=78.2></TD><TD width=13.1></TD><TD width=85.9></TD></TR>
<TR><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom><P style="margin:0pt" align=right><B>June 30, 2006</B></P>
<P style="margin:0pt" align=right><B>(Unaudited)</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom><P style="margin:0pt; padding-left:-2.15pt; padding-right:-2.15pt" align=right>December 31, 2005</P>
<P style="margin:0pt; padding-left:-2.15pt; padding-right:-2.15pt" align=right>(audited)</P>
</TD></TR>
<TR><TD valign=top><P style="margin:0pt"><B><U>ASSETS</U></B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD></TR>
<TR><TD valign=top><P style="margin:0pt"><B>Current Assets</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD></TR>
<TR><TD valign=top><P style="margin:0pt">&nbsp;&nbsp;Cash</P>
</TD><TD valign=bottom><P style="margin:0pt" align=right>$</P>
</TD><TD valign=bottom><P style="margin:0pt" align=right><B>204,604</B></P>
</TD><TD valign=bottom><P style="margin:0pt" align=right>$</P>
</TD><TD valign=bottom><P style="margin:0pt" align=right>3,602</P>
</TD></TR>
<TR><TD valign=top><P style="margin:0pt">&nbsp;&nbsp;Cash - restricted</P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt; text-indent:-36pt" align=right><B>1,000,000</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt; text-indent:-36pt" align=right>1,000,000</P>
</TD></TR>
<TR><TD valign=top><P style="margin:0pt">&nbsp;&nbsp;Accounts receivable net of allowances</P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD></TR>
<TR><TD valign=top><P style="margin:0pt">&nbsp;&nbsp;&nbsp;&nbsp;Trade</P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right><B>1,318,070</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right>1,640,630</P>
</TD></TR>
<TR><TD valign=top><P style="margin:0pt">&nbsp;&nbsp;&nbsp;&nbsp;Other</P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right><B>59,866</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right>109,435</P>
</TD></TR>
<TR><TD valign=top><P style="margin:0pt">&nbsp;&nbsp;Material and supplies inventory</P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right><B>47,425</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right>326,573</P>
</TD></TR>
<TR><TD valign=top><P style="margin:0pt">&nbsp;&nbsp;Prepaid expenses</P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right><B>28,500</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right>32,000</P>
</TD></TR>
<TR><TD valign=top><P style="margin:0pt">&nbsp;&nbsp;Assets held for resale</P>
</TD><TD valign=bottom>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom><P style="margin:0pt" align=right><B>627,830</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom><P style="margin:0pt" align=right>600,390</P>
</TD></TR>
<TR><TD valign=top><P style="margin:0pt">&nbsp;&nbsp;&nbsp;&nbsp;Total current assets</P>
</TD><TD valign=bottom>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom><P style="margin:0pt" align=right><B>3,286,295</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom><P style="margin:0pt" align=right>3,712,630</P>
</TD></TR>
<TR><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD></TR>
<TR><TD valign=top><P style="margin:0pt"><B>Proved Oil &amp; Gas Properties (full cost method)</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD></TR>
<TR><TD valign=top><P style="margin:0pt">&nbsp;&nbsp;net of accumulated depletion of $20,293,082 and $19,404,018</P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right><B>6,351,678</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right>6,679,977</P>
</TD></TR>
<TR><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD></TR>
<TR><TD valign=top><P style="margin:0pt"><B>Property and Equipment</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD></TR>
<TR><TD valign=top><P style="margin:0pt">&nbsp;&nbsp;net of accumulated depreciation of $2,342,888 and $2,274,260</P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right><B>587,544</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right>655,337</P>
</TD></TR>
<TR><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD></TR>
<TR><TD valign=top><P style="margin:0pt"><B>Other Assets</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD></TR>
<TR><TD valign=top><P style="margin:0pt">&nbsp;&nbsp;Notes receivable</P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right><B>41,523</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right>44,584</P>
</TD></TR>
<TR><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=bottom>&nbsp;</TD></TR>
<TR><TD valign=top><P style="margin:0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Total Assets</B></P>
</TD><TD valign=bottom><P style="margin:0pt" align=right>$</P>
</TD><TD style="border-bottom:2pt double #000000" valign=bottom><P style="margin:0pt" align=right><B>10,267,040</B></P>
</TD><TD valign=bottom><P style="margin:0pt" align=right>$</P>
</TD><TD style="border-bottom:2pt double #000000" valign=bottom><P style="margin:0pt" align=right>11,092,528</P>
</TD></TR>
<TR><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD></TR>
<TR><TD valign=top><P style="margin:0pt" align=justify><B>LIABILITIES AND STOCKHOLDERS&#146; EQUITY</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD></TR>
<TR><TD valign=top><P style="margin:0pt"><B>Current Liabilities</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD></TR>
<TR><TD valign=top><P style="margin:0pt">&nbsp;&nbsp;Accounts payable</P>
</TD><TD valign=bottom><P style="margin:0pt; padding-right:-18pt">$</P>
</TD><TD valign=bottom><P style="margin:0pt" align=right><B>3,258,540</B></P>
</TD><TD valign=bottom><P style="margin:0pt; padding-right:-18pt">$</P>
</TD><TD valign=bottom><P style="margin:0pt" align=right>2,767,071</P>
</TD></TR>
<TR><TD valign=top><P style="margin:0pt">&nbsp;&nbsp;Net liabilities of discontinued operations</P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right><B>192,359</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right>192,359</P>
</TD></TR>
<TR><TD valign=top><P style="margin:0pt">&nbsp;&nbsp;Accrued expenses</P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right><B>200,626</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right>353,400</P>
</TD></TR>
<TR><TD valign=top><P style="margin:0pt">&nbsp;&nbsp;Notes payable - banks</P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right><B>89,690</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right>-</P>
</TD></TR>
<TR><TD valign=top><P style="margin:0pt">&nbsp;&nbsp;Current maturities of long-term debt</P>
</TD><TD valign=bottom>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom><P style="margin:0pt" align=right><B>81,927</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom><P style="margin:0pt" align=right>31,770</P>
</TD></TR>
<TR><TD valign=top><P style="margin:0pt">&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities</P>
</TD><TD valign=bottom><P style="margin:0pt; font-family:Courier New" align=right><FONT FACE="Courier New">$</FONT></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom><P style="margin:0pt" align=right><FONT FACE="Times New Roman"><B>3,823,142</B></FONT></P>
</TD><TD valign=bottom><P style="margin:0pt" align=right>$</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom><P style="margin:0pt" align=right>3,344,600</P>
</TD></TR>
<TR><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD></TR>
<TR><TD valign=top><P style="margin:0pt"><B>Long-Term Debt, less Current Maturities</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right><B>210,818</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right>225,131</P>
</TD></TR>
<TR><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD></TR>
<TR><TD valign=top><P style="margin:0pt"><B>Asset Retirement Obligations</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right><B>919,362</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right>866,749</P>
</TD></TR>
<TR><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD></TR>
<TR><TD valign=top><P style="margin:0pt"><B>Deferred income taxes</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right><B>-</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right>-</P>
</TD></TR>
<TR><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD></TR>
<TR><TD valign=top><P style="margin:0pt"><B>Stockholders&#146; Equity</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD></TR>
<TR><TD valign=top><P style="margin:0pt">Preferred stock, no par value, authorized-unlimited, issued &#150; none</P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD></TR>
<TR><TD valign=top><P style="margin:0pt">&nbsp;&nbsp;Common stock, no par value, authorized-unlimited,</P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD></TR>
<TR><TD valign=top><P style="margin:0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;issued 74,763,037 shares in 2006 and 74,763,307 in 2005</P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right><B>63,769,721</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right>63,769,721</P>
</TD></TR>
<TR><TD valign=top><P style="margin:0pt">&nbsp;&nbsp;Less treasury stock &#150; at cost</P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right><B>(100,523)</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right>(97,798)</P>
</TD></TR>
<TR><TD valign=top><P style="margin:0pt">&nbsp;&nbsp;Foreign currency translation adjustment</P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt; padding-right:-2.9pt" align=right><B>(241,549)</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt; padding-right:-2.9pt" align=right>(277,987)</P>
</TD></TR>
<TR><TD valign=top><P style="margin:0pt">&nbsp;&nbsp;Accumulated deficit</P>
</TD><TD valign=bottom>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom><P style="margin:0pt; padding-right:-2.9pt" align=right><B>(58,113,931)</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom><P style="margin:0pt; padding-right:-2.9pt" align=right>(56,737,888)</P>
</TD></TR>
<TR><TD valign=top><P style="margin:0pt">&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders&#146; equity</P>
</TD><TD valign=bottom>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom><P style="margin:0pt" align=right><B>5,313,718</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom><P style="margin:0pt" align=right>6,656,048</P>
</TD></TR>
<TR><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD></TR>
<TR><TD valign=top><P style="margin:0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&nbsp;Total Liabilities and Stockholders&#146; Equity</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=bottom><P style="margin:0pt" align=right><B>10,267,040</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=bottom><P style="margin:0pt" align=right>11,092,528</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-right:-18pt"><I><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;signed Robert Calentine&#148;</U></I></P>
<P style="margin:0pt; padding-right:-18pt; text-indent:261pt"><I><U>&#147;signed Allan Thorne&#148;</U></I></P>
<P style="margin-top:0pt; margin-bottom:-12pt" align=justify>Robert L. Calentine, Director and CEO</P>
<P style="margin:0pt; text-indent:216pt" align=justify>Allan C. Thorne, CFO</P>
<P style="line-height:13pt; margin:0pt; padding-right:-18pt; font-size:11pt" align=center>&nbsp;</P>
<P style="margin:0pt" align=center><BR>
<BR></P>
<P style="margin:0pt">See accompanying notes to these condensed consolidated financial statements</P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="line-height:13pt; margin:0pt; font-size:11pt; page-break-before:always" align=center><B>ASPEN GROUP RESOURCES CORPORATION AND SUBSIDIARIES</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; padding-right:-18pt" align=center><B>CONSOLIDATED STATEMENTS OF OPERATIONS</B></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>(Unaudited</B>)</P>
<P style="margin:0pt" align=center><B>(Expressed in US Dollars)</B></P>
<P style="margin:0pt"><BR></P>
<A NAME="node7"></A><TABLE style="font-size:10pt" cellspacing=0><TR><TD width=203.4></TD><TD width=15.05></TD><TD width=65.95></TD><TD width=15.05></TD><TD width=61.45></TD><TD width=17.85></TD><TD width=58.65></TD><TD width=19.2></TD><TD width=61.8></TD></TR>
<TR><TD valign=bottom>&nbsp;</TD><TD valign=bottom colspan=2><P style="margin:0pt; padding-left:-2.15pt; padding-right:-2.15pt" align=right><B>Period from </B></P>
<P style="margin:0pt; padding-left:-2.15pt; padding-right:-2.15pt" align=right><B>April 1, 2006</B></P>
<P style="margin:0pt; padding-left:-2.15pt; padding-right:-2.15pt" align=right><B>to</B></P>
<P style="margin:0pt; padding-left:-2.15pt; padding-right:-2.15pt" align=right><B>June 30, 2006</B></P>
<P style="margin:0pt; padding-left:-2.15pt; padding-right:-2.15pt" align=right><B>(Unaudited)</B></P>
</TD><TD valign=bottom colspan=2><P style="margin:0pt; padding-left:-2.15pt; padding-right:-2.15pt" align=right>Period from </P>
<P style="margin:0pt; padding-left:-2.15pt; padding-right:-2.15pt" align=right>April 1, 2005 </P>
<P style="margin:0pt; padding-left:-2.15pt; padding-right:-2.15pt" align=right>to</P>
<P style="margin:0pt; padding-left:-2.15pt; padding-right:-2.15pt" align=right>June 30, 2005</P>
<P style="margin:0pt; padding-left:-2.15pt; padding-right:-2.15pt" align=right>(Unaudited)</P>
</TD><TD valign=bottom colspan=2><P style="margin:0pt; padding-left:-2.15pt; padding-right:-2.15pt" align=right><B>Period from </B></P>
<P style="margin:0pt; padding-left:-2.15pt; padding-right:-2.15pt" align=right><B>January 1, 2006</B></P>
<P style="margin:0pt; padding-left:-2.15pt; padding-right:-2.15pt" align=right><B>to</B></P>
<P style="margin:0pt; padding-left:-2.15pt; padding-right:-2.15pt" align=right><B>June 30, 2006</B></P>
<P style="margin:0pt; padding-left:-2.15pt; padding-right:-2.15pt" align=right><B>(Unaudited)</B></P>
</TD><TD valign=bottom colspan=2><P style="margin:0pt; padding-left:-2.15pt; padding-right:-2.15pt" align=right>Period from </P>
<P style="margin:0pt; padding-left:-2.15pt; padding-right:-2.15pt" align=right>January 1, 2005 </P>
<P style="margin:0pt; padding-left:-2.15pt; padding-right:-2.15pt" align=right>to</P>
<P style="margin:0pt; padding-left:-2.15pt; padding-right:-2.15pt" align=right>June 30, 2005</P>
<P style="margin:0pt; padding-left:-2.15pt; padding-right:-2.15pt" align=right>(Unaudited)</P>
</TD></TR>
<TR><TD valign=bottom>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD></TR>
<TR><TD valign=bottom><P style="line-height:14pt; margin:0pt; font-size:12pt"><B>REVENUE:</B></P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD></TR>
<TR><TD valign=bottom><P style="margin:0pt">Oil and gas sales (net of royalties)</P>
</TD><TD valign=top><P style="margin:0pt"><B>$</B></P>
</TD><TD valign=top><P style="margin:0pt" align=right><B>442,419</B></P>
</TD><TD valign=top><P style="margin:0pt">$</P>
</TD><TD valign=top><P style="margin:0pt" align=right>600,292</P>
</TD><TD valign=bottom><P style="margin:0pt"><B>$</B></P>
</TD><TD valign=bottom><P style="margin:0pt" align=right><B>1,259,023</B></P>
</TD><TD valign=bottom><P style="margin:0pt" align=center>$</P>
</TD><TD valign=bottom><P style="margin:0pt" align=right>1,182,506</P>
</TD></TR>
<TR><TD valign=bottom><P style="margin:0pt">Product and service revenues</P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top><P style="margin:0pt" align=right><B>314,228</B></P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top><P style="margin:0pt" align=right>203,648</P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right><B>614,312</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right>328,106</P>
</TD></TR>
<TR><TD valign=bottom><P style="margin:0pt">Other income</P>
</TD><TD valign=top>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><B>12,660</B></P>
</TD><TD valign=top>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right>9,613</P>
</TD><TD valign=bottom>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom><P style="margin:0pt" align=right><B>19,208</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom><P style="margin:0pt" align=right>26,860</P>
</TD></TR>
<TR><TD valign=bottom><P style="margin:0pt">Total revenue</P>
</TD><TD valign=top><P style="margin:0pt"><B>$</B></P>
</TD><TD style="border-bottom:2pt double #000000" valign=top><P style="margin:0pt" align=right><B>769,307</B></P>
</TD><TD valign=top><P style="margin:0pt">$</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top><P style="margin:0pt" align=right>813,553</P>
</TD><TD valign=bottom><P style="margin:0pt"><B>$</B></P>
</TD><TD style="border-bottom:2pt double #000000" valign=bottom><P style="margin:0pt" align=right><B>1,892,543</B></P>
</TD><TD valign=bottom><P style="margin:0pt" align=center>$</P>
</TD><TD style="border-bottom:2pt double #000000" valign=bottom><P style="margin:0pt" align=right>1,537,472</P>
</TD></TR>
<TR><TD valign=bottom>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD></TR>
<TR><TD valign=bottom><P style="line-height:14pt; margin:0pt; font-size:12pt"><B>EXPENSES: </B></P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD></TR>
<TR><TD valign=bottom><P style="margin:0pt">Oil and gas production</P>
</TD><TD valign=top><P style="margin:0pt"><B>$</B></P>
</TD><TD valign=top><P style="margin:0pt" align=right><B>272,356</B></P>
</TD><TD valign=top><P style="margin:0pt">$</P>
</TD><TD valign=top><P style="margin:0pt" align=right>296,306</P>
</TD><TD valign=bottom><P style="margin:0pt"><B>$</B></P>
</TD><TD valign=bottom><P style="margin:0pt" align=right><B>620,868</B></P>
</TD><TD valign=bottom><P style="margin:0pt" align=center>$</P>
</TD><TD valign=bottom><P style="margin:0pt" align=right>516,550</P>
</TD></TR>
<TR><TD valign=bottom><P style="margin:0pt">Operating expenses</P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top><P style="margin:0pt" align=right><B>243,035</B></P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top><P style="margin:0pt" align=right>154,068</P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right><B>476,981</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right>282,308</P>
</TD></TR>
<TR><TD valign=bottom><P style="margin:0pt">General and administrative</P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top><P style="margin:0pt" align=right><B>537,415</B></P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top><P style="margin:0pt" align=right>832,862</P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right><B>1,186,425</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right>1,425,079</P>
</TD></TR>
<TR><TD valign=bottom><P style="margin:0pt">Depreciation, depletion and accretion expense</P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top><P style="margin:0pt" align=right><B>530,850</B></P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top><P style="margin:0pt" align=right>297,296</P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right><B>972,667</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right>597,128</P>
</TD></TR>
<TR><TD valign=bottom><P style="margin:0pt">Stock issued compensation</P>
</TD><TD valign=top>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><B>-</B></P>
</TD><TD valign=top>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right>-</P>
</TD><TD valign=bottom>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom><P style="margin:0pt" align=right><B>-</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom><P style="margin:0pt" align=right>419,309</P>
</TD></TR>
<TR><TD valign=bottom><P style="margin:0pt">Total expenses</P>
</TD><TD valign=top><P style="margin:0pt"><B>$</B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><B>1,583,656</B></P>
</TD><TD valign=bottom><P style="margin:0pt" align=center>$</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right>1,580,532</P>
</TD><TD valign=bottom><P style="margin:0pt"><B>$</B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom><P style="margin:0pt" align=right><B>3,256,941</B></P>
</TD><TD valign=bottom><P style="margin:0pt" align=center>$</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom><P style="margin:0pt" align=right>3,240,374</P>
</TD></TR>
<TR><TD valign=bottom>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD></TR>
<TR><TD valign=bottom><P style="margin:0pt"><B>EARNINGS (LOSS) FROM OPERATIONS</B></P>
</TD><TD valign=top><P style="margin:0pt"><B>$</B></P>
</TD><TD valign=top><P style="margin:0pt" align=right><B>(814,349)</B></P>
</TD><TD valign=bottom><P style="margin:0pt" align=center>$</P>
</TD><TD valign=top><P style="margin:0pt" align=right>(766,979)</P>
</TD><TD valign=top><P style="margin:0pt"><B>$</B></P>
</TD><TD valign=bottom><P style="margin:0pt" align=right><B>(1,364,398)</B></P>
</TD><TD valign=bottom><P style="margin:0pt" align=center>$</P>
</TD><TD valign=bottom><P style="margin:0pt" align=right>(1,702,902)</P>
</TD></TR>
<TR><TD valign=bottom>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD></TR>
<TR><TD valign=bottom><P style="margin:0pt"><B>OTHER</B></P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD></TR>
<TR><TD valign=bottom><P style="margin:0pt">Interest and financing expense</P>
</TD><TD valign=top>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><B>(6,226)</B></P>
</TD><TD valign=top>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right>(10,845)</P>
</TD><TD valign=bottom>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom><P style="margin:0pt; padding-right:-2.9pt" align=right><B>(11,645)</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom><P style="margin:0pt; padding-right:-2.9pt" align=right>(25,667)</P>
</TD></TR>
<TR><TD valign=bottom>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD></TR>
<TR><TD valign=bottom><P style="margin:0pt"><B>NET (LOSS) FROM CONTINUING OPERATIONS</B></P>
</TD><TD valign=top><P style="margin:0pt"><BR></P>
<P style="margin:0pt"><B>$</B></P>
</TD><TD valign=top><P style="margin:0pt" align=right><BR></P>
<P style="margin:0pt" align=right><B>(820,575)</B></P>
</TD><TD valign=top><P style="margin:0pt"><BR></P>
<P style="margin:0pt">$</P>
</TD><TD valign=top><P style="margin:0pt" align=right><BR></P>
<P style="margin:0pt" align=right>(777,824)</P>
</TD><TD valign=bottom><P style="margin:0pt"><B>$</B></P>
</TD><TD valign=bottom><P style="margin:0pt" align=right><B>(1,376,043)</B></P>
</TD><TD valign=bottom><P style="margin:0pt" align=center>$</P>
</TD><TD valign=bottom><P style="margin:0pt" align=right>(1,728,569)</P>
</TD></TR>
<TR><TD valign=bottom>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD></TR>
<TR><TD valign=bottom>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD></TR>
<TR><TD valign=bottom>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD></TR>
<TR><TD valign=bottom><P style="margin:0pt"><B>NET EARNINGS (LOSS)</B></P>
</TD><TD valign=top><P style="margin:0pt" align=right><B>$</B></P>
</TD><TD style="border-bottom:2pt double #000000" valign=top><P style="margin:0pt" align=right><B>(820,575)</B></P>
</TD><TD valign=top><P style="margin:0pt" align=right>$</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top><P style="margin:0pt" align=right>(777,824)</P>
</TD><TD valign=bottom><P style="margin:0pt" align=right><B>$</B></P>
</TD><TD style="border-bottom:2pt double #000000" valign=bottom><P style="margin:0pt; padding-right:-2.9pt" align=right><B>(1,376,043)</B></P>
</TD><TD valign=bottom><P style="margin:0pt" align=center>$</P>
</TD><TD style="border-bottom:2pt double #000000" valign=bottom><P style="margin:0pt; padding-right:-2.9pt" align=right>(1,728,569)</P>
</TD></TR>
<TR><TD valign=bottom>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD></TR>
<TR><TD valign=bottom><P style="margin:0pt"><B>NET EARNINGS (LOSS) PER SHARE</B></P>
</TD><TD valign=top><P style="margin:0pt"><B>$</B></P>
</TD><TD style="border-bottom:2pt double #000000" valign=top><P style="margin:0pt" align=right><B>(0.011)</B></P>
</TD><TD valign=top><P style="margin:0pt">$</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top><P style="margin:0pt" align=right>(0.010)</P>
</TD><TD valign=bottom><P style="margin:0pt"><B>$</B></P>
</TD><TD style="border-bottom:2pt double #000000" valign=bottom><P style="margin:0pt" align=right><B>(0.018)</B></P>
</TD><TD valign=bottom><P style="margin:0pt" align=center>$</P>
</TD><TD style="border-bottom:2pt double #000000" valign=bottom><P style="margin:0pt" align=right>(0.023)</P>
</TD></TR>
<TR><TD valign=bottom>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD></TR>
<TR><TD valign=bottom><P style="margin:0pt"><B>WEIGHTED AVERAGE SHARES</B></P>
</TD><TD valign=top>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top><P style="margin:0pt" align=right><B>74,763,037</B></P>
</TD><TD valign=top>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top><P style="margin:0pt" align=right>74,763,037</P>
</TD><TD valign=bottom>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=bottom><P style="margin:0pt" align=right><B>74,763,037</B></P>
</TD><TD valign=bottom>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=bottom><P style="margin:0pt" align=right>74,763,037</P>
</TD></TR>
</TABLE>
<P style="margin:0pt" align=center><BR>
<BR></P>
<P style="margin:0pt">See accompanying notes to these condensed consolidated financial statements</P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="line-height:13pt; margin:0pt; font-size:11pt; page-break-before:always" align=center><B>ASPEN GROUP RESOURCES CORPORATION AND SUBSIDIARIES</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt" align=center><B>CONSOLIDATED STATEMENTS OF CASH FLOWS</B></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>&nbsp;(Unaudited</B>)</P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>(Expressed in US Dollars)</B></P>
<P style="margin:0pt" align=center><BR></P>
<A NAME="node8"></A><TABLE style="font-size:10pt" cellspacing=0><TR><TD width=221.4></TD><TD width=13.45></TD><TD width=58.55></TD><TD width=13.45></TD><TD width=67.55></TD><TD width=13.45></TD><TD width=58.55></TD><TD width=4.5></TD><TD width=8.95></TD><TD width=4.5></TD><TD width=54.05></TD><TD width=4.5></TD></TR>
<TR><TD valign=bottom>&nbsp;</TD><TD valign=bottom colspan=2><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>Period from </B></P>
<P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>April 1, 2006</B></P>
<P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>to</B></P>
<P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>June 30, 2006</B></P>
<P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>(Unaudited)</B></P>
</TD><TD valign=bottom colspan=2><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>Period from </P>
<P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>April 1, 2005 </P>
<P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>to</P>
<P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>June 30, 2005</P>
<P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>(Unaudited<B>)</B></P>
</TD><TD valign=bottom colspan=3><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>Period from </B></P>
<P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>January 1, 2006</B></P>
<P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>to</B></P>
<P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>June 30, 2006</B></P>
<P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>(Unaudited)</B></P>
</TD><TD valign=bottom colspan=4><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>Period from </P>
<P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>January 1, 2005 </P>
<P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>to</P>
<P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>June 30, 2005</P>
<P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>(Unaudited)</P>
</TD></TR>
<TR><TD valign=bottom>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom colspan=2>&nbsp;</TD><TD valign=bottom colspan=2>&nbsp;</TD><TD valign=bottom colspan=2>&nbsp;</TD></TR>
<TR><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; padding-left:-2.15pt; padding-right:-2.15pt; font-size:9.5pt"><B>CASH FLOWS FROM OPERATING ACTIVITIES</B></P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom colspan=2>&nbsp;</TD><TD valign=bottom colspan=3>&nbsp;</TD></TR>
<TR><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">Net earnings (loss)</P>
</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt"><B>$</B></P>
</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>(820,575)</B></P>
</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">$</P>
</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>(777,824)</P>
</TD><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt"><B>$</B></P>
</TD><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>(1,376,043)</B></P>
</TD><TD valign=bottom colspan=2><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">$</P>
</TD><TD valign=bottom colspan=3><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>(1,728,569)</P>
</TD></TR>
<TR><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities:</P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom colspan=2>&nbsp;</TD><TD valign=bottom colspan=3>&nbsp;</TD></TR>
<TR><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">&nbsp;&nbsp;&nbsp;&nbsp;Stock based compensation</P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>-</B></P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>-</P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>-</B></P>
</TD><TD valign=bottom colspan=2>&nbsp;</TD><TD valign=bottom colspan=3><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>419,309</P>
</TD></TR>
<TR><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and depletion</P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>522,033</B></P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>290,179</P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>957,692</B></P>
</TD><TD valign=bottom colspan=2>&nbsp;</TD><TD valign=bottom colspan=3><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>582,796</P>
</TD></TR>
<TR><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">&nbsp;&nbsp;&nbsp;&nbsp;Accretion expense</P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>8,817</B></P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>7,117</P>
</TD><TD valign=bottom>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>14,975</B></P>
</TD><TD valign=bottom colspan=2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom colspan=3><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>14,332</P>
</TD></TR>
<TR><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">&nbsp;&nbsp;&nbsp;&nbsp;Cash flow from operations</P>
</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt"><B>$</B></P>
</TD><TD style="border-top:0.5pt solid #000000" valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>(289,725)</B></P>
</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">$</P>
</TD><TD style="border-top:0.5pt solid #000000" valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>(480,528)</P>
</TD><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt"><B>$</B></P>
</TD><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>(403,376)</B></P>
</TD><TD valign=bottom colspan=2><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">$</P>
</TD><TD valign=bottom colspan=3><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>(712,132)</P>
</TD></TR>
<TR><TD valign=bottom>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom colspan=2>&nbsp;</TD><TD valign=bottom colspan=3>&nbsp;</TD></TR>
<TR><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">Change in assets and liabilities net of effects from:</P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom colspan=2>&nbsp;</TD><TD valign=bottom colspan=3>&nbsp;</TD></TR>
<TR><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable</P>
</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt"><B>$</B></P>
</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>77,586</B></P>
</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">$</P>
</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>367,992</P>
</TD><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt"><B>$</B></P>
</TD><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>322,560</B></P>
</TD><TD valign=bottom colspan=2><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">$</P>
</TD><TD valign=bottom colspan=3><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>789,919</P>
</TD></TR>
<TR><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">&nbsp;&nbsp;&nbsp;&nbsp;Materials and supplies inventory</P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>279,148</B></P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>(279,148)</P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>279,148</B></P>
</TD><TD valign=bottom colspan=2>&nbsp;</TD><TD valign=bottom colspan=3><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>(279,148)</P>
</TD></TR>
<TR><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities</P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>458,875</B></P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>(342,721)</P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>388,848</B></P>
</TD><TD valign=bottom colspan=2>&nbsp;</TD><TD valign=bottom colspan=3><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>(933,499)</P>
</TD></TR>
<TR><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses</P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>(50,010)</B></P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>43,011</P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>3,500</B></P>
</TD><TD valign=bottom colspan=2>&nbsp;</TD><TD valign=bottom colspan=3><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>(4,489)</P>
</TD></TR>
<TR><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">&nbsp;&nbsp;&nbsp;&nbsp;Other</P>
</TD><TD valign=top>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>(177,327)</B></P>
</TD><TD valign=top>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>-</P>
</TD><TD valign=bottom>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>108,461</B></P>
</TD><TD valign=bottom colspan=2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom colspan=3><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>-</P>
</TD></TR>
<TR><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">Net cash provided by operating activities</P>
</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt"><B>$</B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>298,547</B></P>
</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">$</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>(691,394)</P>
</TD><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt"><B>$</B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>699,141</B></P>
</TD><TD valign=bottom colspan=2><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">$</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom colspan=3><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>(1,139,349)</P>
</TD></TR>
<TR><TD valign=bottom>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom colspan=2>&nbsp;</TD><TD valign=bottom colspan=3>&nbsp;</TD></TR>
<TR><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; padding-left:-2.15pt; padding-right:-2.15pt; font-size:9.5pt"><B>CASH FLOWS FROM INVESTING ACTIVITIES</B></P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom colspan=2>&nbsp;</TD><TD valign=bottom colspan=3>&nbsp;</TD></TR>
<TR><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of equipment</P>
</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt"><B>$</B></P>
</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>-</B></P>
</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">$</P>
</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>-</P>
</TD><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt"><B>$</B></P>
</TD><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>-</B></P>
</TD><TD valign=bottom colspan=2><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">$</P>
</TD><TD valign=bottom colspan=3><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>16,617</P>
</TD></TR>
<TR><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of oil and gas properties</P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>2,131,240</B></P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>-</P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>2,131,240</B></P>
</TD><TD valign=bottom colspan=2>&nbsp;</TD><TD valign=bottom colspan=3><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>-</P>
</TD></TR>
<TR><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">&nbsp;&nbsp;&nbsp;&nbsp;Exploration and development cost capitalized</P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>(2,239,458)</B></P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>(293,116)</P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt; padding-right:-2.9pt" align=right><B>(2,706,982)</B></P>
</TD><TD valign=bottom colspan=2>&nbsp;</TD><TD valign=bottom colspan=3><P style="margin:0pt; padding-right:-2.9pt" align=right>(1,750,863)</P>
</TD></TR>
<TR><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">&nbsp;&nbsp;&nbsp;&nbsp;Acquisitions of office furniture and equipment</P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>-</B></P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>-</P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>(835)</B></P>
</TD><TD valign=bottom colspan=2>&nbsp;</TD><TD valign=bottom colspan=3><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>-</P>
</TD></TR>
<TR><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">&nbsp;&nbsp;&nbsp;&nbsp;Other assets</P>
</TD><TD valign=top>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>-</B></P>
</TD><TD valign=top>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>-</P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt; padding-right:-2.9pt" align=right><B>-</B></P>
</TD><TD valign=bottom colspan=2>&nbsp;</TD><TD valign=bottom colspan=3><P style="margin:0pt; padding-right:-2.9pt" align=right>-</P>
</TD></TR>
<TR><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">Net cash provided by (used by) investing activities</P>
</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt"><B>$</B></P>
</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>(108,218)</B></P>
</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">$</P>
</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>(293,116)</P>
</TD><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt"><B>$</B></P>
</TD><TD style="border-top:0.5pt solid #000000" valign=bottom><P style="margin:0pt; padding-right:-2.9pt" align=right><B>(576,577)</B></P>
</TD><TD valign=bottom colspan=2><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">$</P>
</TD><TD style="border-top:0.5pt solid #000000" valign=bottom colspan=3><P style="margin:0pt; padding-right:-2.9pt" align=right>(1,734,246)</P>
</TD></TR>
<TR><TD valign=bottom>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom colspan=2>&nbsp;</TD><TD valign=bottom colspan=3>&nbsp;</TD></TR>
<TR><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; padding-left:-2.15pt; padding-right:-2.15pt; font-size:9.5pt"><B>CASH FLOWS FROM FINANCING ACTIVITIES</B></P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom colspan=2>&nbsp;</TD><TD valign=bottom colspan=3>&nbsp;</TD></TR>
<TR><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">&nbsp;&nbsp;&nbsp;&nbsp;Bank loan advances</P>
</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt"><B>$</B></P>
</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>-</B></P>
</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">$</P>
</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>-</P>
</TD><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt"><B>$</B></P>
</TD><TD valign=bottom><P style="margin:0pt" align=right><B>89,690</B></P>
</TD><TD valign=bottom colspan=2><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">$</P>
</TD><TD valign=bottom colspan=3><P style="margin:0pt" align=right>-</P>
</TD></TR>
<TR><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sale of common stock</P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>-</B></P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>44,270</P>
</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom><P style="margin:0pt" align=right><B>-</B></P>
</TD><TD valign=bottom colspan=2>&nbsp;</TD><TD valign=bottom colspan=3><P style="margin:0pt" align=right>994,803</P>
</TD></TR>
<TR><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">&nbsp;&nbsp;&nbsp;&nbsp;Repayment of notes payable and long-term debt</P>
</TD><TD valign=top>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>(50,174)</B></P>
</TD><TD valign=top>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>(214,105)</P>
</TD><TD valign=bottom>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>(11,252)</B></P>
</TD><TD valign=bottom colspan=2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom colspan=3><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>(354,515)</P>
</TD></TR>
<TR><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">Net cash provided by (used by) financing activities</P>
</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt"><B>$</B></P>
</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>(50,174)</B></P>
</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">$</P>
</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>(169,835)</P>
</TD><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt"><B>$</B></P>
</TD><TD valign=bottom><P style="margin:0pt" align=right><B>78,438</B></P>
</TD><TD valign=bottom colspan=2><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">$</P>
</TD><TD valign=bottom colspan=3><P style="margin:0pt" align=right>640,288</P>
</TD></TR>
<TR><TD valign=bottom>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=bottom>&nbsp;</TD><TD valign=bottom colspan=2>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=bottom colspan=3>&nbsp;</TD></TR>
<TR><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; padding-left:-2.15pt; padding-right:-2.15pt; font-size:9.5pt"><B>NET INCREASE (DECREASE)</B></P>
</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt"><B>$</B></P>
</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>140,155</B></P>
</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">$</P>
</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>(1,154,345)</P>
</TD><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt"><B>$</B></P>
</TD><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>201,002</B></P>
</TD><TD valign=bottom colspan=2><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">$</P>
</TD><TD valign=bottom colspan=3><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>(2,233,307)</P>
</TD></TR>
<TR><TD valign=bottom>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom colspan=2>&nbsp;</TD><TD valign=bottom colspan=3>&nbsp;</TD></TR>
<TR><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; padding-left:-2.15pt; padding-right:-2.15pt; font-size:9.5pt"><B>CASH AND CASH EQUIVALENTS </B></P>
<P style="line-height:11.5pt; margin:0pt; padding-left:-2.15pt; padding-right:-2.15pt; font-size:9.5pt"><B>- BEGINNING OF PERIOD</B></P>
</TD><TD valign=top>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>64,449</B></P>
</TD><TD valign=top>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>3,917,223</P>
</TD><TD valign=bottom>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>3,602</B></P>
</TD><TD valign=bottom colspan=2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom colspan=3><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>4,996,185</P>
</TD></TR>
<TR><TD valign=bottom>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom colspan=2>&nbsp;</TD><TD valign=bottom colspan=3>&nbsp;</TD></TR>
<TR><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; padding-left:-2.15pt; padding-right:-2.15pt; font-size:9.5pt"><B>CASH AND CASH EQUIVALENTS</B></P>
<P style="line-height:11.5pt; margin:0pt; padding-left:-2.15pt; padding-right:-2.15pt; font-size:9.5pt"><B>- END OF PERIOD</B></P>
</TD><TD valign=top><P style="margin:0pt"><BR></P>
<P style="line-height:11.5pt; margin:0pt; font-size:9.5pt"><B>$</B></P>
</TD><TD style="border-bottom:2pt double #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>204,604</B></P>
</TD><TD valign=top><P style="margin:0pt"><BR></P>
<P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">$</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>2,762,878</P>
</TD><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt"><B>$</B></P>
</TD><TD style="border-bottom:2pt double #000000" valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>204,604</B></P>
</TD><TD valign=bottom colspan=2><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">$</P>
</TD><TD style="border-bottom:2pt double #000000" valign=bottom colspan=3><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>2,762,878</P>
</TD></TR>
<TR><TD valign=bottom>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom colspan=2>&nbsp;</TD><TD valign=bottom colspan=3>&nbsp;</TD></TR>
<TR><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt"><B>SUPPLAMENTAL INFORMATION</B></P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom>&nbsp;</TD><TD valign=bottom colspan=2>&nbsp;</TD><TD valign=bottom colspan=3>&nbsp;</TD></TR>
<TR><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">&nbsp;&nbsp;&nbsp;&nbsp;Cash paid for interest</P>
</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt"><B>$</B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>6,226</B></P>
</TD><TD valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">$</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>10,845</P>
</TD><TD valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt"><B>$</B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right><B>11,645</B></P>
</TD><TD valign=bottom colspan=2><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt">$</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom colspan=3><P style="line-height:11.5pt; margin:0pt; font-size:9.5pt" align=right>25,667</P>
</TD></TR>
<TR><TD valign=bottom colspan=12>&nbsp;</TD></TR>
<TR><TD valign=bottom colspan=12>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt"><BR>
<BR></P>
<P style="margin:0pt">See accompanying notes to these condensed consolidated financial statements</P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="line-height:13pt; margin:0pt; font-size:11pt; page-break-before:always" align=center><B>ASPEN GROUP RESOURCES CORPORATION AND SUBSIDIARIES</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>(Unaudited)</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>(Expressed in US Dollars)</B></P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><B>NATURE OF BUSINESS AND BASIS OF PREPARATION AND PRESENTATION</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><B>Nature of Business</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Aspen Group Resources Corporation is an independent energy company engaged in the acquisition, exploration, development and operation of oil and gas properties with a geographic focus in major oil and gas producing regions in the United States and Canada.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><B>Financial Statement Presentation</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>The unaudited consolidated financial statements of Aspen Group Resources Corporation and its subsidiaries (collectively the &quot;Company&quot; or &quot;Aspen&quot;) included herein have been prepared by Aspen without audit. &nbsp;Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted U. S. accounting principles have been condensed or omitted, since Aspen believes that the disclosures included are adequate to make the information presented not misleading. &nbsp;In the opinion of Management, the Condensed Consolidated Financial Statements include all adjustments consisting of normal recurring adjustments necessary to present fairly the financial position, results of operations and cash flows as of the dates and for the periods presented. &nbsp;These Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and the notes thereto included for the fiscal year ended December 31, 2005.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><B>Restricted Cash</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>The Company was required to place a $1.0 million bond along with a court of appeal application to appeal a lawsuit decision. &nbsp;The bond issuer required $1.0 million cash as collateral.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><B>EARNINGS PER SHARE</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Diluted earnings per share for the six month period ending June 30, 2006 and 2005 are the same as basic earnings per share because the exercise of potentially dilutive securities would not have an effect.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><B>COMMON STOCK ISSUED</B></P>
<P style="margin:0pt" align=justify><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=184.8></TD><TD width=67.45></TD><TD width=16.3></TD><TD width=73.1></TD><TD width=63.85></TD><TD width=16.3></TD><TD width=67></TD></TR>
<TR><TD style="border:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top colspan=3><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>2006</B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top colspan=3><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>2005</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center><B>Number of Shares</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=center><BR></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center><B>Amount</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>Number of Shares</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=center><BR></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>Amount</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; padding-left:18pt; font-size:11pt" align=justify>Balance, beginning of period</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><B>74,763,037</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><B>63,769,721</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>71,203,307</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>62,656,769</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; padding-left:18pt; font-size:11pt" align=justify><B>Transactions during the period</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; padding-left:27pt; font-size:11pt" align=justify>Private Placement</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; padding-left:27pt; font-size:11pt" align=justify>Exercised Purchase Warrants</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><B>-</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><B>-</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>3,560,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>963,072</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; padding-left:27pt; font-size:11pt">Issued for Stock Based Compensation</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><B>-</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><B>-</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>-</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>149,880</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; padding-left:18pt; font-size:11pt" align=justify><B>Balance, end of period</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><B>74,763,037</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><B>63,769,721</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>74,763,037</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>63,769,721</P>
</TD></TR>
</TABLE>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; padding-top:3pt; text-indent:433.7pt; border-top:0.5pt solid #000000">Notes Page &nbsp;&nbsp;6</P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="line-height:13pt; margin:0pt; font-size:11pt; page-break-before:always" align=center><B>ASPEN GROUP RESOURCES CORPORATION AND SUBSIDIARIES</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>(Unaudited)</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>(Expressed in US Dollars)</B></P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><B>OPERATIONS</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>The Company's operations for the six month periods are carried on in the following geographic locations. &nbsp;</P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=180.9></TD><TD width=16.3></TD><TD width=86.75></TD><TD width=16.3></TD><TD width=86.75></TD><TD width=16.3></TD><TD width=83.6></TD></TR>
<TR><TD style="border:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>US</B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>Canada</B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>Total</B></P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; padding-left:18pt; font-size:11pt" align=justify><B>June &nbsp;30, 2006</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; padding-left:18pt; font-size:11pt" align=justify>Total assets</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>1,750,464</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>8,516,576</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>10,267,040</B></P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; padding-left:18pt; font-size:11pt" align=justify>Gross revenue</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>&nbsp;&nbsp;&nbsp;633,562</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>1,258,981</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>&nbsp;&nbsp;1,892,543</B></P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; padding-left:18pt; font-size:11pt" align=justify>Net earnings (loss)</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>&nbsp;&nbsp;&nbsp;(903,805)</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>&nbsp;&nbsp;&nbsp;(472,238)</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>&nbsp;&nbsp;(1,376,043)</B></P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; padding-left:18pt; font-size:11pt" align=justify>Earnings per share (loss)</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.012)</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.006)</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.018)</B></P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; padding-left:18pt; font-size:11pt" align=justify>June 30, 2005</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; padding-left:18pt; font-size:11pt" align=justify>Total assets</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5,175,382</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>7,007,344</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>12,182,726</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; padding-left:18pt; font-size:11pt" align=justify>Gross revenue</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>&nbsp;&nbsp;&nbsp;354,966</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>1,182,506</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>&nbsp;&nbsp;1,537,472</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; padding-left:18pt; font-size:11pt" align=justify>Net earnings (loss)</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>(1,774,589)</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46,020</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>&nbsp;&nbsp;&nbsp;(1,728,569)</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; padding-left:18pt; font-size:11pt" align=justify>Earnings (loss) per share</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.023)</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.00)</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.023)</P>
</TD></TR>
</TABLE>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><B>OTHER INFORMATION</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><B>Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Certain statements, in this filing, and elsewhere (such as in other filings by Aspen Resources with the Commission, press releases, presentations by Aspen Group Resources Corporation or its management and oral statements) constitute &#147;forward-looking statements&#148; within the meaning of the Private Securities Litigation Reform Act of 1995. &nbsp;Such forward-looking statements involve known and unkown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Aspen Resources Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. &nbsp;Such factors include, among other things, (i) significant variability in Aspen&#146;s quarterly revenues and results of operations as a result of variations in the Aspen&#146;s production in a particular quarter while a significant percentage of its operating expenses are fixed in advance, (ii) changes in the prices of oil and gas, (iii) Aspen&#146;s ability to obtain capital and (iv) other risk factors commonly faced by small oil and gas companies.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
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<TITLE>MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND</TITLE>
<META NAME="author" CONTENT="Denise Collin">
<META NAME="date" CONTENT="08/09/2006">
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<P style="line-height:14pt; margin:0pt; padding-left:36pt; padding-right:36pt; font-size:12pt" align=center><B>ASPEN GROUP RESOURCES CORPORATION</B></P>
<P style="line-height:14pt; margin:0pt; padding-left:36pt; padding-right:36pt; font-size:12pt" align=center><B>AND SUBSIDIARIES</B></P>
<P style="margin:0pt" align=center><BR></P>
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<P style="margin:0pt" align=center><BR></P>
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<P style="line-height:14pt; margin:0pt; padding-left:36pt; padding-right:36pt; font-size:12pt" align=center><B>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL </B></P>
<P style="line-height:14pt; margin:0pt; padding-left:36pt; padding-right:36pt; font-size:12pt" align=center><B>CONDITION AND RESULTS OF OPERATIONS</B></P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
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<P style="line-height:14pt; margin:0pt; padding-left:36pt; padding-right:36pt; font-size:12pt" align=center><B>June 30, 2006</B></P>
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<P style="margin:0pt; page-break-before:always"><B>ASPEN GROUP RESOURCES CORPORATION</B></P>
<P style="margin:0pt"><B>AND SUBSIDIARIES</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><B>INDEX</B></P>
<P style="margin:0pt"><BR></P>
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<P style="margin:0pt; text-indent:416.35pt"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Page No.</B></P>
<P style="margin:0pt"><B>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF </B></P>
<P style="margin:0pt"><B>OPERATIONS</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt"><B>Overall Performance</B></P>
<P style="margin:0pt; text-indent:463pt">3</P>
<P style="margin-top:0pt; margin-bottom:-12pt"><B>Results of Operations</B></P>
<P style="margin:0pt; text-indent:463pt">4</P>
<P style="margin-top:0pt; margin-bottom:-12pt"><B>Summary of Quarterly Results</B></P>
<P style="margin:0pt; text-indent:463pt">5</P>
<P style="margin-top:0pt; margin-bottom:-12pt"><B>Liquidity and Capital Resources</B></P>
<P style="margin:0pt; text-indent:463pt">6</P>
<P style="margin-top:0pt; margin-bottom:-12pt"><B>Notes Payable &#150; Bank</B></P>
<P style="margin:0pt; text-indent:463pt">6</P>
<P style="margin-top:0pt; margin-bottom:-12pt"><B>Long Term Debt</B></P>
<P style="margin:0pt; text-indent:463pt">6</P>
<P style="margin-top:0pt; margin-bottom:-12pt"><B>Five-year Maturity Schedule</B></P>
<P style="margin:0pt; text-indent:463pt">6</P>
<P style="margin-top:0pt; margin-bottom:-12pt"><B>Critical Accounting Estimates</B></P>
<P style="margin:0pt; text-indent:463pt">7</P>
<P style="margin-top:0pt; margin-bottom:-12pt"><B>Outstanding Share Data</B></P>
<P style="margin:0pt; text-indent:463pt">7</P>
<P style="margin:0pt"><BR></P>
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<P style="margin:0pt"><B>Other Information </B></P>
<P style="margin-top:0pt; margin-bottom:-12pt">Litigation</P>
<P style="margin:0pt; text-indent:463pt">7</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><B>Forward Looking Statements</B></P>
<P style="margin-top:0pt; margin-bottom:-12pt">Safe Harbor Statement</P>
<P style="margin:0pt; text-indent:463pt">8</P>
<P style="margin-top:0pt; margin-bottom:-12pt">Drilling Updates</P>
<P style="margin:0pt; text-indent:463pt">8</P>
<P style="margin-top:0pt; margin-bottom:-12pt">Risks</P>
<P style="margin:0pt; text-indent:463pt">8</P>
<P style="margin-top:0pt; margin-bottom:-12pt">Outlook</P>
<P style="margin:0pt; text-indent:463pt">9</P>
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<P style="line-height:13pt; margin:0pt; font-size:11pt; page-break-before:always" align=center><B>ASPEN GROUP RESOURCES CORPORATION AND SUBSIDIARIES</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>for six months ended June 30, 2006</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>(Unaudited)</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>(Expressed in US Dollars)</B></P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt" align=justify><BR></P>
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<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><B>THE MANAGEMENT DISCUSSION AND ANALYSIS WAS PREPARED BY MANAGEMENT </B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><B>AND WAS NOT REVIEWED BY THE COMPANY&#146;S AUDITORS.</B></P>
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<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>Date of the Report: &nbsp;August 10, 2006</B></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>The following discussion should be read in conjunction with the audited consolidated financial statements and the accompanying notes for the year ended December 31, 2005 and the unaudited interim financial statements for the six month periods ended June 30, 2006 and 2005. &nbsp;Aspen&#146;s financial statements have been prepared using US GAAP. &nbsp;Aspen&#146;s reserves have been reported in accordance with National Instrument 51-101 guidelines.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>This discussion contains certain forward looking statements based on current expectations. &nbsp;These forward looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward looking statements. &nbsp;Management has prepared this discussion to help investors understand the financial results of the Company in a broader context.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Aspen is an independent energy company engaged in the acquisition, exploration, development and operation of oil and gas properties with a geographic focus in major oil and gas producing regions in the United States and Canada. &nbsp;The Company&#146;s head office is located in Calgary, Alberta.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>In Canada, Aspen operates through its wholly owned subsidiary Aspen Endeavour Resources Inc. and has properties in Alberta, Saskatchewan and Manitoba, both in an operator and non-operator position. &nbsp;The primary areas of operation are Taber and Namaka, Alberta and the Daly field in Manitoba.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt"><B>OVERALL PERFORMANCE</B></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>In the first half of 2006, the Company incurred losses of $1.4 million and had negative cash flow of $403 thousand. &nbsp;The oil and gas production declined by 14% but with the strong commodity prices of the first half the Company&#146;s oil and gas sales revenue increased by 3%. &nbsp;The sales of Aspen&#146;s US subsidiary company, United Cementing &amp; Acid Company, increased by 87% this six month period compared to the same period in 2005. &nbsp;With the high cost of field operations and water disposal fees, Aspen&#146;s oil and gas operations still remained unprofitable. &nbsp;Subsequent to June 30, 2006, the Company completed a water disposal well in the Daly, Manitoba field, which is expected to reduce future operating, costs.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>During the quarter ending June 30, 2006 the Company drilled five horizontal oil wells in the Daly, Manitoba field and subsequent to June 30, 2006 the Company has drilled an additional horizontal oil well in the same field along with a water disposal well. &nbsp;All six oil wells are capable of production and as of the date of this report, four are currently on production. &nbsp;With the completion of the water disposal well and the expected new production from the Daly field, management anticipates the Company will significantly improve its operating results.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>The Company has financed a portion of these drilling costs by selling some of its existing non-core properties for proceeds of $2.1 million, which represented 66 barrels of oil per day and will use available bank debt to help fund the drilling project.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>The Company had an accumulated deficit of $58.1 million and a working capital deficiency of $537 thousand as at June 30, 2006. &nbsp;During this period the Company renewed its line of credit for $900 thousand.</P>
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<P style="line-height:13pt; margin:0pt; font-size:11pt; page-break-before:always" align=center><B>ASPEN GROUP RESOURCES CORPORATION AND SUBSIDIARIES</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>for six months ended June 30, 2006</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>(Unaudited)</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>(Expressed in US Dollars)</B></P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><B>OVERALL PERFORMANCE <I>(continued)</I></B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Over the past 36 months, oil prices have increased by an estimated 139% creating significant demand for drilling rigs and service equipment. &nbsp;In addition to reduced availability, the higher sustained prices and subsequent demand have also caused a considerable increase in costs throughout the entire oil and gas service industry. &nbsp;In fiscal 2006, drilling in the Daly field was delayed due to the inability to contract a drilling rig until April of 2006. &nbsp;These conditions are expected to continue for the foreseeable future.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><B>RESULTS OF OPERATIONS</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><B>Results of Operations &#150; Three Months</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><B><I>Three Months Fiscal 2006 and Three Months 2005</I></B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>During the three months ended June 30, 2006, Aspen had a net loss of $820,575 compared to a net loss of $777,824 for the three month period ended June 30, 2005. &nbsp;The increased loss was due to an increase in depletion. &nbsp;From continued operations the loss before interest, taxes, depreciation and other was $283,499 compared to a $469,683 loss for the three months ended June 30, 2005.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Production decreased with the continuing operations in Canada. &nbsp;Average production for the three months ended June 30, 2006 averaged 185 BOE per day in the 2<SUP>nd</SUP> quarter of the year representing a decrease of 23% from the 2<SUP>nd</SUP> quarter of 2005 of 240 BOE per day. &nbsp;The decrease is due to disposing 66 BOE per day in the 2<SUP>nd</SUP> quarter. &nbsp;The production mix in the 2<SUP>nd</SUP> quarter of 2006 was 74% gas and 26% oil compared to 64% gas and 36% oil in the 2<SUP>nd</SUP> quarter of 2005.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>From continued operations, gross revenues decreased to $769,307 during the three months ended June 30, 2006, compared to $813,553 during the three months ended June 30, 2005, a decrease of 5.4%. &nbsp;The decrease in gross revenues is attributable to the disposition of non-core producing oil and gas properties in Canada.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>General and administrative expenses decreased approximately 35% to $537,415 during the three months ended June 30, 2006 from the same period to June 30, 2005, due to the reduction in legal expenses.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Interest and financing expenses have also decreased due to the decrease in average bank debt that the Company had in the quarter ended June 30, 2006.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><B>Results of Operations &#150; Six Months</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><B><I>Six Months Fiscal 2006 and Six Months 2005</I></B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>During the six months ended June 30, 2006, Aspen had a net loss of $1,376,043 compared to a net loss of $1,728,569 during the six months ended June 30, 2005. &nbsp;From continued operations the loss before interest, taxes, depreciation and other was $391,731 for the six months ended June 30, 2006 compared to $686,465 for the six months ended June 30, 2005.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Production decreased with the continuing operations in Canada. &nbsp;Average production for the six months ended June 30, 2006 averaged 223 BOE per day in the 1<SUP>st</SUP> half of the year representing a decrease of 13.6% from the 1<SUP>st</SUP> half of 2005 of 258 BOE per day. &nbsp;The production mix in the 1<SUP>st</SUP> half of 2006 was 63% gas and 37% oil compared to 63% gas and 37% oil in the 1<SUP>st</SUP> half of 2005.</P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; padding-top:3pt; border-top:0.5pt solid #000000"><BR></P>
<P style="margin:0pt"><BR></P>
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<P style="line-height:13pt; margin:0pt; font-size:11pt; page-break-before:always" align=center><B>ASPEN GROUP RESOURCES CORPORATION AND SUBSIDIARIES</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>for six months ended June 30, 2006</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>(Unaudited)</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>(Expressed in US Dollars)</B></P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><B>RESULTS OF OPERATIONS<I> (continued)</I></B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>From continued operations, gross revenues increased to $1,892,543 during the six months ended June 30, 2006, compared to $1,537,472 during the six months ended June 30, 2005, an increase of 23%. &nbsp;The increase </P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>in gross revenues is mostly attributable to an increase in revenues from United Cementing &amp; Acid Company of $286,206 and a marginal sales increase due to commodity prices.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>General and administrative expenses decreased approximately 16.7% to $1,186,425 during the six months ended June 30, 2006 from the same period ended June 30, 2005. &nbsp;The decrease is attributable to a decrease in legal expenses.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Interest and financing expenses have decreased due to the decrease in average bank debt.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><B>SUMMARY OF QUARTERLY RESULTS</B></P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=137.75></TD><TD width=83.65></TD><TD width=90></TD><TD width=90></TD><TD width=91.8></TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=center><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>Period</B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><B>Revenues</B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><B>Loss from</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><B>Operations</B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><B>Loss per share</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><B>Basic</B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><B>Loss per share</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><B>Diluted</B></P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt">Three months ended June 30, 2006</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$769,307</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$814,349</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$0.01</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$0.01</P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt">Three months ended March 31, 2006</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$1,123,236</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$550,049</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$0.01</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$0.01</P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt">Three months ended</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">December 31, 2005</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$1,255,814</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$1,559,839</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$0.02</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$0.02</P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt">Three months ended</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">September 30, 2005</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$1,152,018</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$896,979</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$0.01</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$0.01</P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt">Three months ended</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">June 30, 2005</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$813,553</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$777,824</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$0.01</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$0.01</P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt">Three months ended</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">March 31, 2005</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$723,919</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$935,923</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$0.01</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$0.01</P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt">Three months ended</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">December 31, 2004</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$869,951</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$1,476,753</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$0.02</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$0.02</P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt">Three months ended</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">September 30, 2004</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$892,786</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$1,415,985</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$0.02</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$0.02</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; padding-top:3pt; border-top:0.5pt solid #000000"><BR></P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="line-height:13pt; margin:0pt; font-size:11pt; page-break-before:always" align=center><B>ASPEN GROUP RESOURCES CORPORATION AND SUBSIDIARIES</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>for six months ended June 30, 2006</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>(Unaudited)</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>(Expressed in US Dollars)</B></P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><B>LIQUIDITY AND CAPITAL RESOURCES</B></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:normal; margin:0pt; font-size:11pt" align=justify>As of June 30, 2006, Aspen had a working capital deficit of $536,847 compared to working capital of $368,030 at December 31, 2005. &nbsp;The Company expects it will finance its future development activities with cash flow, working capital and further bank debt.</P>
<P style="margin:0pt" align=justify><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=329.4></TD><TD width=11.8></TD><TD width=69.2></TD><TD width=11.8></TD><TD width=71></TD></TR>
<TR><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><B>Notes Payable &nbsp;- Banks</B></P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD></TR>
<TR><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>December 31</P>
</TD></TR>
<TR><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt">The following is a summary of notes payable &#150; bank at June 30, 2006</P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B><U>2006</U></B></P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><U>2005</U></P>
</TD></TR>
<TR><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD></TR>
<TR><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt">Revolving $856,800 production loan, repayable in equal monthly </P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">installments of $64,300 commencing April 1, 2006 bearing interest at </P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">bank prime plus 1.5% which is secured by petroleum and natural gas </P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">properties</P>
</TD><TD valign=top><P style="margin:0pt" align=right><BR></P>
<P style="margin:0pt" align=right><BR></P>
<P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>$</B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="margin:0pt" align=right><BR></P>
<P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><B>89,690</B></P>
</TD><TD valign=top><P style="margin:0pt" align=right><BR></P>
<P style="margin:0pt" align=right><BR></P>
<P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="margin:0pt" align=right><BR></P>
<P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>-</P>
</TD></TR>
<TR><TD valign=top>&nbsp;</TD><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><B>$</B></P>
</TD><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><B>89,690</B></P>
</TD><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$</P>
</TD><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>-</P>
</TD></TR>
<TR><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD></TR>
<TR><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt"><B>Line of Credit</B></P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD></TR>
<TR><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD></TR>
<TR><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt">A subsidiary obtained a line of credit from a bank with a $50,000 credit </P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">limit. &nbsp;The interest rate is at the bank&#146;s prime rate plus 1%.</P>
</TD><TD valign=top>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><B>50,000</B></P>
</TD><TD valign=top>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>-</P>
</TD></TR>
<TR><TD valign=top>&nbsp;</TD><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><B>$</B></P>
</TD><TD style="border-bottom:2pt double #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><B>139,690</B></P>
</TD><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>-</P>
</TD></TR>
<TR><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD></TR>
<TR><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt"><B>Long Term Debt</B></P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD></TR>
<TR><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>December 31</P>
</TD></TR>
<TR><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt">The following is a summary of long-term debt at June 30, 2006</P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B><U>2006</U></B></P>
</TD><TD valign=top>&nbsp;</TD><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><U>2005</U></P>
</TD></TR>
<TR><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD></TR>
<TR><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt">$241,263 property loan, payable in monthly installments of $3,713 </P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">which includes interest at 7.5% through November 2008 thereafter, </P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Wall Street money rate plus .5% to November 2012, secured by real </P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">estate</P>
</TD><TD valign=top><P style="margin:0pt" align=right><BR></P>
<P style="margin:0pt" align=right><BR></P>
<P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><B>$</B></P>
</TD><TD valign=top><P style="margin:0pt" align=right><BR></P>
<P style="margin:0pt" align=right><BR></P>
<P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><B>229,830</B></P>
</TD><TD valign=top><P style="margin:0pt" align=right><BR></P>
<P style="margin:0pt" align=right><BR></P>
<P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$</P>
</TD><TD valign=top><P style="margin:0pt" align=right><BR></P>
<P style="margin:0pt" align=right><BR></P>
<P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>239,723</P>
</TD></TR>
<TR><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD></TR>
<TR><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><I>Other</I></P>
</TD><TD valign=top>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><B>12,754</B></P>
</TD><TD valign=top>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>17,178</P>
</TD></TR>
<TR><TD valign=top>&nbsp;</TD><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><B>$</B></P>
</TD><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><B>242,584</B></P>
</TD><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$</P>
</TD><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>256,901</P>
</TD></TR>
<TR><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD></TR>
<TR><TD valign=top><P style="line-height:13pt; margin:0pt; padding-left:36pt; font-size:11pt" align=justify><I>Less &#150; current portion</I></P>
</TD><TD valign=top>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><B>(31,766)</B></P>
</TD><TD valign=top>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>(31,770)</P>
</TD></TR>
<TR><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD><TD valign=top>&nbsp;</TD></TR>
<TR><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Total long term debt, less current maturities</P>
</TD><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><B>$</B></P>
</TD><TD style="border-bottom:2pt double #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right><B>210,818</B></P>
</TD><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>$</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=right>225,131</P>
</TD></TR>
</TABLE>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><B>Five-year Maturity Schedule</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Long-term debt is due as follows: &nbsp;2006 - $27,453; 2007 - $29,691; 2008 - $31,996; 2009 - $34,480; 2010 - $37,156; thereafter - $91,808.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; padding-top:3pt; border-top:0.5pt solid #000000"><BR></P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="line-height:13pt; margin:0pt; font-size:11pt; page-break-before:always" align=center><B>ASPEN GROUP RESOURCES CORPORATION AND SUBSIDIARIES</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>for six months ended June 30, 2006</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>(Unaudited)</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>(Expressed in US Dollars)</B></P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><B>CRITICAL ACCOUNTING ESTIMATES</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><B>Measurement Uncertainty</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>The timely preparation of financial statements requires that management make estimates and assumptions and use judgment regarding assets, liabilities, revenues and expenses. &nbsp;Such estimates relate primarily to transactions and events that have not settled as of the date of the financial statements. &nbsp;Accordingly, actual results may differ from estimated amounts as future confirming events occur.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Amounts recorded for depletion and depreciation, asset retirement obligations and amounts used in impairment test calculations are based upon estimates of petroleum and natural gas reserves and future costs to develop those reserves. &nbsp;By their nature, these estimates of reserves, costs and related future cash flows are subject to uncertainty, and the impact on the consolidated financial statements of future periods could be material.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><B>OUTSTANDING SHARE DATA</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>The Company has an authorized capital of an unlimited number of common shares without par value. &nbsp;At August 9, 2006 there were 74,763,037 common shares issued and outstanding.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>At June 30, 2006 the following options were outstanding:</P>
<P style="margin:0pt" align=justify><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=98.6></TD><TD width=98.65></TD><TD width=98.65></TD><TD width=98.65></TD><TD width=98.65></TD></TR>
<TR><TD style="border-bottom:1pt solid #000000" valign=top><P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt"><B>Options</B></P>
</TD><TD style="border-bottom:1pt solid #000000" valign=top><P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>Date Granted</B></P>
</TD><TD style="border-bottom:1pt solid #000000" valign=top><P style="margin:0pt" align=center><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>Number</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>of</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>common shares</B></P>
</TD><TD style="border-bottom:1pt solid #000000" valign=top><P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>Price per</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>Share</B></P>
</TD><TD style="border-bottom:1pt solid #000000" valign=top><P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>Expiry Date</B></P>
</TD></TR>
<TR><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Directors</P>
</TD><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>June 22, 2004</P>
</TD><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>800,000</P>
</TD><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>$0.40</P>
</TD><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>June 22, 2009</P>
</TD></TR>
<TR><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Directors</P>
</TD><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>June 21, 2006</P>
</TD><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>150,000</P>
</TD><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>$0.50</P>
</TD><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>June 21, 2011</P>
</TD></TR>
<TR><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Officers</P>
</TD><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>June 22, 2004</P>
</TD><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>200,000</P>
</TD><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>$0.40</P>
</TD><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>June 22, 2009</P>
</TD></TR>
<TR><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Officers</P>
</TD><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>January 1, 2006</P>
</TD><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>500,000</P>
</TD><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>$0.30</P>
</TD><TD valign=top><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>January 1, 2011</P>
</TD></TR>
</TABLE>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><B>OTHER INFORMATION</B></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><B>Litigation</B></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>The Company and its subsidiaries, in the normal course of operations, are sometimes named as defendants in litigation. &nbsp;The nature of these claims is related to disputes arising from services provided by outside contractors or for delinquent payments. &nbsp;The Company does not expect that the results of any of these proceedings will have a material adverse effect on the Company&#146;s financial position.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>The Company and its subsidiaries are also involved in lawsuits with former officers, former directors, former shareholders and entities owned or controlled by these parties and certain other parties with whom the Company may have had business relationships. &nbsp;Allegations against the Company include liabilities for guarantees, promissory notes, unpaid compensation and violations of employment contracts, failure to pay royalties and Canadian income tax reassessments due to flow-through share transactions. &nbsp;The Company is vigorously defending these actions and in certain cases has filed counter suits against these parties. &nbsp;The Company is unable to predict the outcome of these matters, but does not believe, based upon currently available facts, that the ultimate resolution of such matters will have a material adverse effect on the consolidated financial statements of the Company.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><B>FORWARD LOOKING STATEMENTS</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><B>Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Certain statements in this filing, and elsewhere (such as in other filings by Aspen Group Resources Corporation with the Commission, press releases, presentations by Aspen Group Resources Corporation or its management and oral statements) constitute &quot;forward looking statements&quot; within the meaning of the Private Securities Litigation Reform Act of 1995. &nbsp;Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Aspen Resources Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. &nbsp;Such factors include, among other things, (i) significant variability in Aspen&#146;s quarterly revenues and results of operations as a result of variations in the Aspen's production in a particular quarter while a significant percentage of its operating expenses are fixed in advance, (ii) changes in the prices of oil and gas, (iii) Aspen's ability to obtain capital and (iv) other risk factors commonly faced by small oil and gas companies.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><B>Drilling Updates</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>On July 31, 2006, the Company announced that six horizontal wells have been drilled and cased since April 2006 on its acreage in the Daly field in Manitoba, as part of a phased development program. &nbsp;Wells one through five were drilled in an eastern section of Aspen&#146;s acreage to further define the geological characteristics of the Upper Lodgepole, Middle Daly and Bakken zones. &nbsp;The sixth well was drilled in the southern area of Aspen&#146;s acreage and targeted the Middle Daly zone. &nbsp;Completion and production testing of the six wells is ongoing. &nbsp;Aspen moved the contracted drilling equipment to drill a seventh well, the tenth well drilled over all by Aspen since inception of the Manitoba drilling program. &nbsp;This well is a vertical water disposal well and was drilled from the same pad as the first two wells that were drilled in the program. &nbsp;The drilling rig was released to another operator for two months.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><B>Risks</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>The principal business of the Company is exploring for, developing and producing oil and natural gas. &nbsp;As such, it is exposed to a number of risks and uncertainties that are common to other companies in the same industry.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Aspen&#146;s future success depends on its ability to find, develop or acquire oil and gas reserves that are economically recoverable. &nbsp;Exploration and development drilling may not result in commercially productive reserves. &nbsp;Successful acquisitions require an assessment of a number of factors, many of which are uncertain. &nbsp;These factors include recoverable reserves, exploration potential, future oil and gas prices, operating costs , potential environmental and other liabilities. &nbsp;Such assessments are inexact and their accuracy is inherently uncertain.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Oil and gas drilling and producing operations are subject to many risks including the possibility of fire, explosions, mechanical failure, pipe failure, chemical spills, accidental flows of oil, natural gas or well fluids, sour gas releases and other occurrences or accidents which could result in personal injury or loss of life, damage or destruction of properties, environmental damage, interruption of business, regulatory investigations and penalties and liability to third parties.</P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
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<P style="margin:0pt"><BR></P>
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<P style="line-height:13pt; margin:0pt; font-size:11pt; page-break-before:always" align=center><B>ASPEN GROUP RESOURCES CORPORATION AND SUBSIDIARIES</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>for six months ended June 30, 2006</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>(Unaudited)</B></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>(Expressed in US Dollars)</B></P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><B>Risks <I>(continued)</I></B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>This business is capital intensive. &nbsp;Presently, the only source for additional funds to fully develop the projects undertaken by the Company is the equity market. &nbsp;Complementary debt finance will only be available upon the proving of economic production from reserves. &nbsp;Although the Corporation was successful in accessing the equity markets during fiscal 2004 and 2005, there are no assurances that Aspen will be successful in the future or that such sources of capital will be available.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>A substantial and extended decline in the prices of crude oil or natural gas could result in delay or cancellation of drilling, development or construction or curtailment in production, all of which could have a material adverse impact on the Company.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>The oil and gas industry is highly competitive in all aspects of the business, including the acquisition of properties, the exploration for and development of new sources of supply and the marketing of current production. &nbsp;A number of the Company&#146;s competitors have financial and other resources substantially in excess of those available to the Company.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify><B>Outlook</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>After the scheduled break in drilling, Aspen plans to continue its drilling program on the acquired acreage. &nbsp;Two of the first three wells drilled last October in the first phase of drilling are oil productive. &nbsp;They are currently constrained due to the mechanical limitations of disposing large volumes of water. &nbsp;Once the water disposal well is operable, these two wells will be placed on production with much higher rates of oil volumes anticipated and lower water handling and operating costs.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>The two month break in drilling will provide Aspen additional time to establish a production profile for the area. &nbsp;It will also allow the participants to identify the best targets for future drilling and to optimize the development of the Company&#146;s lands. &nbsp;Aspen has over 3,000 acres in the Daly field that presents significant opportunities to utilize horizontal drilling to find and produce oil from a proven reservoir.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Additional information relating to the Company may be accessed by visiting the SEDAR website at www.sedar.com </P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>4
<FILENAME>form521092f2bobcalentine.htm
<DESCRIPTION>CEO CERTIFICATE
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>FORM 52-109FT2</TITLE>
<META NAME="author" CONTENT="Joan Moody">
<META NAME="date" CONTENT="06/04/2004">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>Modified Form 52-109F2</B></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>CERTIFICATION OF INTERIM FILINGS</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>I Robert L. Calentine, The Chief Executive Officer of Aspen Group Resources Corporation, certify that:</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:-18pt; font-size:12pt" align=justify>1. </P>
<P style="line-height:14pt; margin:0pt; padding-left:36pt; font-size:12pt" align=justify>I have reviewed the interim filings (as this term is defined in Multilateral Instrument 52-109 <I>Certification of Disclosure in Issuers&#146; Annual and Interim Filings</I>) of Aspen Group Resources Corporation, (the issuer) for the interim period ending June 30, 2006;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:-18pt; font-size:12pt" align=justify>2. </P>
<P style="line-height:14pt; margin:0pt; padding-left:36pt; font-size:12pt" align=justify>Based on my knowledge, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:-18pt; font-size:12pt" align=justify>3.</P>
<P style="line-height:14pt; margin:0pt; padding-left:36pt; font-size:12pt" align=justify>Based on my knowledge, the interim financial statements together with the other financial information included in the interim filings fairly present in all material respects the financial condition, results of operations and cash flows of the issuer, as of the date and for the periods presented in the interim filings; and</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:-18pt; font-size:12pt" align=justify>4.</P>
<P style="line-height:14pt; margin:0pt; padding-left:36pt; font-size:12pt" align=justify>The issuer&#146;s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures for the issuer, and we have designed such disclosure controls and procedures, or caused them to be designed under our supervision, to provide reasonable assurance that material information relating to the issuer, including its consolidated subsidiaries, is made to us by others within those entities, particularly during the period in which the interim filings are being prepared.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>Date: August 10, 2006</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify><U>&#147;signed Bob Calentine&#148;</U></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>[Signature]</P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>CEO</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>5
<FILENAME>form521092f2althorne.htm
<DESCRIPTION>CFO CERTIFICATE
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>FORM 52-109FT2</TITLE>
<META NAME="author" CONTENT="Joan Moody">
<META NAME="date" CONTENT="06/04/2004">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>Modified Form 52-109F2</B></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>CERTIFICATION OF INTERIM FILINGS</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>I Allan C. Thorne, The Chief Financial Officer of Aspen Group Resources Corporation, certify that:</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:-36pt; font-size:12pt" align=justify>1. </P>
<P style="line-height:14pt; margin:0pt; padding-left:36pt; font-size:12pt" align=justify>I have reviewed the interim filings (as this term is defined in Multilateral Instrument 52-109 <I>Certification of Disclosure in Issuers&#146; Annual and Interim Filings</I>) of Aspen Group Resources Corporation, (the issuer) for the interim period ending June 30, 2006;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:-36pt; font-size:12pt" align=justify>2. </P>
<P style="line-height:14pt; margin:0pt; padding-left:36pt; font-size:12pt" align=justify>Based on my knowledge, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:-18pt; font-size:12pt" align=justify>3.</P>
<P style="line-height:14pt; margin:0pt; padding-left:36pt; font-size:12pt" align=justify>Based on my knowledge, the interim financial statements together with the other financial information included in the interim filings fairly present in all material respects the financial condition, results of operations and cash flows of the issuer, as of the date and for the periods presented in the interim filings; and</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:-18pt; font-size:12pt" align=justify>4.</P>
<P style="line-height:14pt; margin:0pt; padding-left:36pt; font-size:12pt" align=justify>The issuer&#146;s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures for the issuer, and we have designed such disclosure controls and procedures, or caused them to be designed under our supervision, to provide reasonable assurance that material information relating to the issuer, including its consolidated subsidiaries, is made to us by others within those entities, particularly during the period in which the interim filings are being prepared.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>Date: August 10, 2006</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify><U>&#147;signed Allan C. Thorne&#148;</U></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>[Signature]</P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>CFO</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
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