**Exhibit        15.1**

**CLAUDE        RESOURCES INC.**

**Information        Circular**

**For        the Annual General Meeting of Shareholders**

**to        be held on April 27, 2005**

**SOLICITATION        OF PROXIES BY MANAGEMENT**

**This        Information Circular is furnished in connection with the solicitation of        proxies        by or on behalf of the management of Claude Resources Inc. (the "Corporation")        for use at the Annual General Meeting (the "Meeting") of the shareholders        of the        Corporation. The information contained herein is current as of March 18,        2005,        unless otherwise indicated. The Meeting will be held at the Sheraton Cavalier        Hotel, Top Of The Inn, 612 Spadina Crescent East, Saskatoon, Saskatchewan,        on        April 27, 2005, 10:00 a.m. (Saskatoon time) for the purposes set forth in        the        accompanying Notice of Annual General Meeting of Shareholders (the "Notice").        **

| (a)    | be                  provided with a form of proxy executed by the Intermediary, but                  otherwise                  uncompleted. The Non-Registered Shareholder may complete the proxy                  and                  return it directly to the Corporation; or                               |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                             |
| (b)    | be                  provided with a request for voting instructions. The Intermediary                  is                  required to send to the Corporation an executed form of proxy completed                  in                  accordance with any voting instructions received by                  it. |

**APPOINTMENT        OF PROXIES**

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**REVOCABILITY        OF PROXIES**

| (a)    | by                  depositing a written notice of revocation executed by the shareholder                  or                  the shareholder’s attorney authorized in writing: |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                   |
|   | (i)                                                                                                                                                                                    | at                  the registered office of the Corporation at any time up to and                  including                  the last business day preceding the day of the Meeting, or any                  adjournment                  thereof; or |
|   |                                                                                                                                                                                   |   |
|   | (ii)                                                                                                                                                                                   | with                  the chairman of the Meeting on the day of the Meeting or any adjournment                  thereof; or |
|   |                                                                                                                                                                                   |   |
| (b)    | in                  any other manner permitted by law.                                                                                                                                 |

**EXERCISE        OF DISCRETION WITH RESPECT TO PROXIES**

**The        persons named in the enclosed form of proxy will vote the shares in respect        of        which they are appointed in accordance with the direction of the shareholders        appointing them. In the absence of such direction, such shares will be voted        FOR        the matters referred to in the Notice.**

**VOTING        SECURITIES AND PRINCIPAL HOLDERS OF VOTING SECURITIES**

**DIRECTORS'        AND OFFICERS' LIABILITY INSURANCE**

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**ELECTION        OF DIRECTORS**

*Canada        Business Corporations Act*

|  **Name                  and Place of****Residence**                                                                                                                                                                                                                                                                                                                                                                                                  |   | **Number                  of Common****Shares                  Beneficially****Owned**                         |   |  **Office                  Held and Time****As                  Director**                                                                                                                                                                                                                                                                                                                                                                       |   |  **Principal****Occupation**                                                                                                                                                                                                                                                                                                                                                    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  Ronald                  G. Walker(1)                  (3)Victoria,                  BC  Jon                  R. MacNeill(1)(3)(4)Calgary,                  AB  Arnie                  E. Hillier(2)Saskatoon,                  SK  Neil                  McMillan(2)Saskatoon,                  SK   Robert                  W. Termuende(1)                  (3) (4)Fort                  Steele, B.C. |   |  Nil   Nil   147,800   176,250    25,000 |   |  Director                  since                  February, 1984.  Director                  since                  June, 1982.  Director                  since                  April, 1996.  CEO                  & President since March 2004 previouslyPresident                  and Director since                  April, 1996.  Director                  since                  June 2003. |   |  President,                  Great Canadian Dollar Store Franchising Ltd., a franchisor of retail                  store                  outlets. Business                  person.   Business                  person.   CEO                  & President of the Corporation.    Business                  person. |

|   | (1) | Member                  of the Audit Committee         |
|--------|-----|--------------------------------------------------------|
|   | (2) | Member                  of the Executive Committee     |
|   | (3) | Member                  of the Compensation Committee  |
|   | (4) | Member                  of the Oil & Gas Committee |

**STATEMENT        OF EXECUTIVE COMPENSATION **

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**SUMMARY        COMPENSATION TABLE**

|                                                                                                                                                |     |  **Annual                    Compensation** | **Long-Term                    Compensation** |                                                    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|----------|--------------------------------------------------|-----------------------------------------------|---------------------------------------------------------|
|                                                                                                                                                |     |                                             |                                          |                                                    | **Awards** | **Payouts** |   |
| **Name                    and****Principal****Position**                                                                                            | **Year** |  **Salary****($)**                          | **Bonus****($)**                              | **Other                    Annual Compensation****($)** |  **Securities****Under                    Options****Granted                    (#)** | **Restricted****Shares****or****Restricted****Share****Units****($)** |  **LTIP****Payouts****($)** |  **All                    Other****Compensation                    ($)** |
| W.R.                    MacNeill(1)Chairman                                                                                                         | 2004     | 160,000                                          | Nil                                           | Nil                                                     | Nil | Nil | Nil | 845 |
| 2003                                                                                                                                                | 135,000  | Nil                                              | Nil                                           | Nil                                                     | Nil | Nil | 798 |
| 2002                                                                                                                                                | 135,000  | Nil                                              | Nil                                           | Nil                                                     | Nil | Nil | 742 |
| A.                    N. McMillanPresident                    &CEO                                                                              | 2004     | 160,000                                          | Nil                                           | Nil                                                     | Nil | Nil | Nil | 2,027 |
| 2003                                                                                                                                                | 123,000  | 50,000                                           | Nil                                           | Nil                                                     | Nil | Nil | 1,775 |
| 2002                                                                                                                                                | 123,000  | Nil                                              | Nil                                           | Nil                                                     | Nil | Nil | 760 |
| R.                    Johnson(2)V.P.                    Finance &CFO                                                                            | 2004     | 94,200                                           | Nil                                           | Nil                                                     | Nil | Nil | Nil | 1,622 |
| A.E.                    Hillier(3)CEO                    and CFO from                    Jan                    1- Feb                    28, 2004. | 2004     | 26,667                                           | Nil                                           | Nil                                                     | Nil | Nil | Nil | 380 |
| 2003                                                                                                                                                | 123,000  | Nil                                              | Nil                                           | Nil                                                     | Nil | Nil | 1,775 |
| 2002                                                                                                                                                | 123,000  | Nil                                              | Nil                                           | Nil                                                     | Nil | Nil | 760 |

| (1) | The                    salary reported for Mr. W. R. MacNeill is the sum of annual management                    fees paid to BEC International Corporation. Mr. MacNeill and                    his spouse                    are the beneficial owners of all of the shares of BEC International                    Corporation. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Mr.                    R. Johnson was first appointed CFO on February 28,                    2004.                                                                                                                                                                                                                                 |
| (3) | Mr.                    A.E. Hillier retired as an officer of the Corporation on February                    28,                    2004. He continues to act as a director of the                    Corporation.                                                                                                                  |

**AGGREGATED        OPTIONS EXERCISED DURING THE MOST RECENTLY **

**COMPLETED        FINANCIAL YEAR AND FINANCIAL YEAR-END OPTION VALUES**

| Name                                                                                                                       | Securities                  AcquiredOn                  Exercise(#) |   Aggregate                  ValueRealized($) |  UnexercisedOptions                  at FY-End(#)Exercisable/Unexercisable                                       | Value                  of UnexercisedIn-the-MoneyOptions                  at FY-End($)Exercisable/Unexercisable       |
|----------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------|---------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|
|  W.R.                  MacNeillA.E.                  HillierA.N.                  McMillanR.                  Johnson |  ----                                                          |  ----                                              |  600,000                  / -600,000                  / -600,000                  / -90,000                  / - |  239,470                  / -154,000                  / -154,000                  / -27,100                  / - |

| (1) | The                    Corporation has not issued any share appreciation                    rights. |
|-----|-----------------------------------------------------------------------------------------------------|

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**COMPOSITION        OF THE COMPENSATION COMMITTEE**

**REPORT        ON EXECUTIVE COMPENSATION**

| • | With                  specific reference to the Corporation’s strategic plans, the enhancement                  of long-term growth prospects. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                 |
| • | To                  increase shareholder value as reflected in the share                  price.                                                     |
|    |                                                                                                                                                 |
| • | To                  increase earnings and cash flow.                                                                                                 |

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**PERFORMANCE        GRAPH**

|                                        |   |   | **December                  31****1999** |   |   | **December                  31****2000** |   |   | **December                  31****2001** |   |   | **December                  31****2002** |   |   | **December                  31****2003** |   |   | **December                  31****2004** |   |
|--------------------------------------------------|--------|--------|------------------------------------------|--------|--------|------------------------------------------|--------|--------|------------------------------------------|--------|--------|------------------------------------------|--------|--------|------------------------------------------|--------|--------|------------------------------------------|--------|
| **Claude**                                       |   |   | 100                                      |   |   | 57.78                                    |   |   | 60.00                                    |   |   | 164.44                                   |   |   | 240.00                                   |   |   | 144.44                                   |   |
| **S&P/TSX                  Composite Index** |   |   | 100                                      |   |   | 107.41                                   |   |   | 93.91                                    |   |   | 82.23                                    |   |   | 104.20                                   |   |   | 119.29                                   |   |

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**COMPENSATION          OF DIRECTORS**

**SECURITIES        AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS**

|    Plan                  Category                            |   | Number                  of Securities to be Issued                  upon Exercise of Outstanding                  Options(1), Warrants                  and Rights(a) |      | Weighted-average                  exercise                  price of outstanding                  options, warrants and                  rights(b) |   | Number                  of securities remaining                  available for                  future issuance under equity                  compensation plans                  (excluding securities reflected                  in column (a))(c) |   |
|-----------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Equity                  compensation plans approved by security holders     |   |                                                                                                                                                                  | 2,660,000 |                                                                                                                                               | $      | 1.15                                                                                                                                                                                                                                                 |   |   | 1,281,000 |   |
| Equity                  compensation plans not approved by security holders |   |                                                                                                                                                                  | -         |                                                                                                                                               |   | -                                                                                                                                                                                                                                                    |   |   | - |   |
| **Total**                                                                   |   |                                                                                                                                                                  | 2,660,000 |                                                                                                                                               | $      | 1.15                                                                                                                                                                                                                                                 |   |   | 1,281,000 |   |

| (1) | All                  securities under option are Common Shares.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Employee                  Share Purchase Plan - Under the plan, eligible employees may contribute                  up                  to 5% of their basic salary and the Corporation shall contribute                  common                  shares in an amount equal to 50% of the employee’s contribution. Shares of                  the Corporation are issued to employees on a weighted average market                  price                  over a specific period. 1,216,947 common shares remain                  available. |

**FINANCIAL        STATEMENTS**

**APPOINTMENT        OF AUDITOR**

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**CORPORATE        GOVERNANCE PRACTICES**

**SHAREHOLDER        PROPOSALS**

**OTHER        MATTERS**

**ADDITIONAL        INFORMATION**

**DIRECTORS'        APPROVAL**

| “Signed”                 | “Signed”                             |
|--------------------------------------|--------------------------------------------------|
|                                 |                                             |
| William                  R. MacNeill | Rick                  Johnson                    |
| Chairman                             | Vice                  President of Finance & |
|                                 | Chief                  Financial Officer         |

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**EXHIBIT        “A” - STATEMENT OF CORPORATE GOVERNANCE**

*Sarbanes-OxleyAct        of 2002. *

|     |                  **TSX                  Guideline for effective****corporate                  governance** |                                                                                                                                                                                                                    |                  **Does                  the****Corporation****Align?** |   **Governance                  Procedures of the Corporation** |
|--------------------|-----------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------|---------------------------------------------------------------------------|
|  1.           |                                                                                                            |  The                  Board should explicitly assume responsibility for stewardship of                  the                  corporation and specifically for:                                                          |                                                                         |  Yes                                                                 |  The                  Board supervises, either directly or indirectly through its committees,                  management of the Corporation’s business and affairs. The Board and each                  board committee has a mandate which sets out its responsibilities.                  Copies                  of the Company's code of business conduct and charters of the Board                  and                  its committees are available from the Company's head                  office. |
|               |                                                                                                            |  (i)                  adoption of a strategic planning process and approval of a strategic                  plan                  which takes into account the opportunities and risks of the                  business |                                                                         |  Yes                                                                 |  The                  Corporation’s strategic plan is approved by the Board. Specific time is                  devoted each year to discussions regarding the Corporation’s strategic                  plan, with the directors being given the opportunity to provide                  feedback                  to management. Management must seek the Board's approval for any                  transaction that would have a significant impact on the strategic                  plan. |
|               |                                                                                                            |  (ii)                  identification of the principal risks of the corporation’s business and                  ensuring implementation of appropriate systems to manage those                  risks             |                                                                         |  Yes                                                                 |  The                  Board, through the Executive Committee, is responsible for identifying                  the                  principal risks of the Company and ensuring that risk management                  systems                  are implemented. The principal risks of the Company include those                  related                  to: exploration and mining, in general, market risks, reserve estimates                  and the environment. |
|               |                                                                                                            |  (iii)                  succession planning, including appointing, training and monitoring                  senior                  management                                                                          |                                                                         |  Yes                                                                 |  The                  Board is responsible for choosing the president and CEO, appointing                  senior                  management and for monitoring their performance. The Board approves                  the                  president and CEO's corporate objectives and compensation for all                  officers. |
|               |                                                                                                            |  (iv)                  communications policy                                                                                                                                                                            |                                                                         |  Yes                                                                 |  The                  Board has approved a Corporate Disclosure Policy which covers,                  among other                  things, the timely disclosure of material information. The Board                  reviews                  and approves the content of all major disclosure documents, including                  the                  Annual Information Form, the Annual Report and the Management Proxy                  Circular. In addition, investor relations personnel are available                  to                  answer shareholder inquiries. |
|               |                                                                                                            |  (v)                  integrity of internal control and management information                  systems                                                                                                                 |                                                                         |  Yes                                                                 |  Internal                  control and management systems are in the process of being updated                  and                  formally documented for review of the Audit Committee. The Committee                  meets                  quarterly with management where implementation plans, assessment                  and                  adequacy of these control systems and processes are                  discussed. |
|  2.           |                                                                                                            |  A                  majority of directors should be “unrelated”.                                                                                                                                            |                                                                         |  Yes                                                                 |  3                  of the 5 directors proposed for election are “unrelated” as currently                  defined in the TSX guidelines on corporate governance. The Company                  does                  not have a significant shareholder. |

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|   **TSX                  Guideline for effective****corporate                  governance** |  **Does                  the****Corporation****Align?**                                                                                                                                                                                                                                                                                                                                |   **Governance                  Procedures of the Corporation** |
|-------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------|
|  3.                                                                                              |  The                  board has a responsibility for applying the definition of “unrelated                  director” to each individual director and for disclosing annually the                  analysis of the application of the principles supporting this definition                  and whether the board has a majority of unrelated                  directors. |  Yes                                                                 |  The                  Board has determined that 3 of the 5 directors proposed for election                  are                  “unrelated”. For these purposes, the Board in determining whether                  directors were related or unrelated applied the test set forth                  in the                  current TSX Guidelines. |
|  4.                                                                                              |  The                  board should appoint a committee of directors composed exclusively                  of                  outside directors, a majority of whom are “unrelated” directors, with                  responsibility for proposing new nominees to the board and for                  assessing                  directors on an ongoing basis.             |  No                                                                  |  The                  Chairman of the Board, in consultation with the Board at large,                  is                  responsible for proposing new nominees to the Board. The Corporation                  is of                  the view that a formal Nominating Committee of the Board is not                  required                  given the current size of the Company. |
|  5.                                                                                              |  The                  board should implement a process, to be carried out by an appropriate                  committee, for assessing the effectiveness of the board, its committees                  and the contribution of individual directors.                                                                                                                                    |  No                                                                  |  The                  Board has not established any formal measures for assessing the                  effectiveness of the Board, its Committees and the contribution                  of                  individual directors. |
|  6.                                                                                              |  The                  board should provide an orientation and education program for new                  directors.                                                                                                                                                                                                                                                                    |  Yes                                                                 |  The                  Company has an orientation and education program in place for current                  and                  new directors. All new directors receive a Board Manual containing                  a                  record of historical public information about the Company, as well                  as the                  charters of the Board, its committees, and other relevant corporate                  and                  business information. |
|  7.                                                                                              |  The                  board should examine its size and undertake, where appropriate,                  a program                  to establish the size of the board which facilitates effective                  decision-making.                                                                                                                                                     |  Yes                                                                 |  The                  size of the Board is currently set at 5. The Board is continuing                  to review                  its size to ensure that the number of directors facilitates effective                  decision-making. In doing so, the Board will ensure that there                  is, at all                  times, a broad spectrum of skills, knowledge and expertise to benefit                  from. |
|  8.                                                                                              |  The                  board of directors should review the adequacy and form of compensation                  of                  directors in light of the risks and responsibilities involved in                  being an                  effective director.                                                                                                                      | Yes                                                                       |  The                  Compensation Committee is charged with reviewing and assessing                  the level                  and nature of directors’ compensation. The Committee considers the                  responsibilities involved with being an effective director, risks,                  as well                  as the time commitment expected. Further details of directors’                  compensation are included in this Circular on page 6 under the                  heading                  “Compensation of Directors”. |

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|      |  **TSX                  Guideline for effective corporate governance**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | **Does                  the****Corporation****Align?** |  **Governance                  Procedures of the Corporation**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  9.  |  Committees                  of the board should generally be composed of outside directors,                  a majority                  of whom are unrelated although some board committees may include                  one or                  more inside directors.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  No                                               |  Given                  the current and immediate prospective size of the Board, certain                  of the                  committees are not composed exclusively of outside and unrelated                  directors.Audit                  CommitteeChair:                  Robert W. TermuendeMembers:                  Ronald G. Walker, Jon R. MacNeillCompensation                  CommitteeChair:                  William R. MacNeill (related director)                  (1)Members:                  Jon R. MacNeill, Ronald G. Walker, Robert W. TermuendeOil                  & Gas CommitteeChair:                  William R. MacNeill (related director)                  (1)Members:                  Jon R. MacNeill, Robert W. TermuendeExecutive                  Committee(related                  directors)Chair:                  William R. MacNeill(1)Members:                  Arnie E. Hillier, Neil McMillan (1)                  Mr. William R. MacNeill is retiring effective April 27, 2005.                  For                  further information relating to Mr. William R. MacNeill’s retirement, see                  page 3 of this Circular under the heading “Election of                  Directors”. |
|  10. |  The                  board should assume responsibility for, or assign to a committee                  of                  directors responsibility for, developing the approach to corporate                  governance issues. This committee would, among other things, be                  responsible for the response to these governance                  guidelines.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  Yes                                              |  The                  Audit Committee is responsible for reviewing the overall governance                  principles of the Company, recommending any changes to these principles,                  and monitoring their disclosure. This Committee is responsible                  for the                  statement of corporate governance practices included in the Company's                  management proxy circular. This Committee is currently reviewing                  proposed                  new practices to ensure the Company implements revised standards                  of                  corporate governance as they are clarified.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|  11. |  The                  board of directors, together with the chief executive officer,                  should                  develop position descriptions for the board and for the chief executive                  officer, including the definition of the limits to management’s                  responsibilities. The board should approve or develop corporate                  objectives                  which the chief executive officer is responsible for meeting and                  assess                  the chief executive officer against these objectives.                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  Yes                                              |  Mandates                  have been developed for the Board, and Board Committees. The Board                  has                  approved policies which define the limits of management’s authority and                  responsibilities and approves corporate objectives which the Chief                  Executive Officer is responsible for meeting. The Chief Executive                  Officer’s performance is formally assessed on an annual basis, including                  an assessment against specific objectives and financial performance                  of the                  Company as compared to the financial plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|  12. |  The                  board should implement structures and procedures which ensure that                  it can                  function independently of management. An appropriate structure                  would be                  to: (i) appoint a chair of the board who is not a member of management                  with responsibility to ensure that the board discharges its                  responsibilities or (ii)                  assign the responsibility to an outside director, sometimes referred                  to as                  the “lead director”. The chair or lead director should ensure that the                  board carries out its responsibilities effectively which will involve                  the                  board meeting on a regular basis without management present and                  may                  involve assigning the responsibility for administering the board’s                  relationship to management to a committee of the                  board. |  No                                               |  The                  Corporation is an evolving junior resource company which has relied                  extensively on internal management of the company. The Chairman                  of the                  Board and President/Chief Executive Officer are members of management                  and                  each a related director. The                  Board holds an in-camera session without management present at                  each full                  meeting of the Board. The future configuration of the Board will                  evolve as                  the TSX rules are clarified.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

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|      |  **TSX                  Guideline for effective corporate governance**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **Does                  the****Corporation****Align?** |  **Governance                  Procedures of the Corporation**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  13. |  The                  audit committee should be composed of only unrelated directors.                  All of the                  members of the committee should be financially literate and at                  least one                  member should have accounting or related financial expertise. Each                  board                  shall determine the definition of and criteria for “financial literacy”                  and “accounting or related financial expertise”. The board should adopt a                  charter for the audit committee which sets out the roles and                  responsibilities of the committee. The audit committee should have                  direct                  communication channels with the internal and the external auditors                  to                  discuss and review specific issues as appropriate.  The                  audit committee duties should include oversight responsibility                  for                  management reporting on internal control. While it is management’s                  responsibility to design and implement an effective system of internal                  control, it is the responsibility of the audit committee to ensure                  that                  management has done so. |  Yes                                              |  The                  Audit Committee is comprised entirely of unrelated directors. The                  Audit Committee’s members are all “financially literate” according to a                  Board approved definition and at least one member has “accounting or                  related financial expertise”, according to a Board approved                  definition. The                  Committee’s mandate is approved by the Board of Directors. The Committee                  has direct communication channels with the external auditor and                  meets with                  the external auditor without management present at least twice                  each year,                  providing an opportunity to discuss and review specific issues.                  The                  Committee also requires management to implement and maintain appropriate                  internal control procedures. In fulfilling its duties, the Committee                  has                  requested formalized internal control policies for review. The                  Committee                  will review the implementation schedule and proposed policies on                  a                  quarterly basis. |
|  14. |  The                  board should implement a system to enable an individual director                  to engage                  an outside advisor at the corporation’s expense in appropriate                  circumstances. The engagement of the outside advisor should be                  subject to                  the approval of an appropriate committee of the board.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  Yes                                              |  Individual                  directors may engage outside advisors at the expense of the Corporation,                  subject to the approval of the Board of                  Directors.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |