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<DIV class=Section1>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center>UNITED STATES 

SECURITIES AND EXCHANGE COMMISSION</P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center>Washington, D.C.<SPAN 

style="mso-spacerun: yes">  </SPAN>20549<SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 6.5pt; mso-bidi-font-size: 10.0pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 6.5pt; mso-bidi-font-size: 10.0pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 6.5pt; mso-bidi-font-size: 10.0pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><B 

style="mso-bidi-font-weight: normal"><SPAN 

style="FONT-SIZE: 15.5pt; FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 10.0pt">FORM 

20-F<o:p></o:p></SPAN></B></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><B 

style="mso-bidi-font-weight: normal"><SPAN 

style="FONT-SIZE: 15.5pt; FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 10.0pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></B></P>

<P class=MsoNormal><SPAN 

style="FONT-FAMILY: 'Times New Roman'; mso-bidi-font-weight: bold">(mark 

one)<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN 

style="FONT-FAMILY: 'Times New Roman'; mso-bidi-font-weight: bold"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoBodyTextIndent2>___<SPAN style="mso-spacerun: yes">  

</SPAN>REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES 

EXCHANGE ACT OF 1934</P>

<P 

class=MsoBodyTextIndent2><![if !supportEmptyParas]><![endif]> <o:p></o:p></P>

<P class=MsoBodyTextIndent2>OR</P>

<P class=MsoNormal style="MARGIN-LEFT: 22.5pt; TEXT-INDENT: -22.5pt"><SPAN 

style="FONT-FAMILY: 'Times New Roman'; mso-bidi-font-weight: bold"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoBodyTextIndent2><U><SPAN style="mso-bidi-font-weight: normal"><SPAN 

style="mso-spacerun: yes">  </SPAN>X </SPAN></U><SPAN 

style="mso-bidi-font-weight: normal"><SPAN 

style="mso-spacerun: yes">  </SPAN>ANNUAL REPORT PURSUANT TO 

</SPAN>SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</P>

<P class=MsoBodyTextIndent2><SPAN 

style="mso-spacerun: yes">        </SPAN>For 

the fiscal year ended May 31, 2002</P>

<P 

class=MsoBodyTextIndent2><![if !supportEmptyParas]><![endif]> <o:p></o:p></P>

<P class=MsoBodyTextIndent2>OR</P>

<P 

class=MsoBodyTextIndent2><![if !supportEmptyParas]><![endif]> <o:p></o:p></P>

<P class=MsoBodyTextIndent2>___<SPAN style="mso-spacerun: yes">  

</SPAN>TRANSITION REPORT <SPAN style="mso-bidi-font-weight: normal">PURSUANT TO 

</SPAN>SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</P>

<P class=MsoBodyTextIndent2><SPAN 

style="mso-spacerun: yes">        </SPAN>For 

the transition period from __________ to __________</P>

<P class=MsoNormal style="MARGIN-LEFT: 22.5pt; TEXT-INDENT: -22.5pt"><SPAN 

style="FONT-FAMILY: 'Times New Roman'; mso-bidi-font-weight: bold"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><B 

style="mso-bidi-font-weight: normal"><SPAN 

style="FONT-SIZE: 6.5pt; FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 10.0pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></B></P>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><SPAN 

style="mso-spacerun: yes">   </SPAN></SPAN><SPAN 

style="FONT-SIZE: 10pt"><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt">Commission file number 

<U>0-29392</U><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 8.5pt; mso-bidi-font-size: 10.0pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 8.5pt; mso-bidi-font-size: 10.0pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><B 

style="mso-bidi-font-weight: normal"><U><SPAN 

style="FONT-SIZE: 15.5pt; FONT-FAMILY: 'Times New Roman'; mso-bidi-font-size: 10.0pt">CALAIS<SPAN 

style="mso-spacerun: yes">  </SPAN>RESOURCES INC.</SPAN></U></B><SPAN 

style="FONT-SIZE: 15.5pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt">(Exact name of Registrant as specified in its 

charter)<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><U><SPAN 

style="FONT-SIZE: 10pt">British Columbia, Canada</SPAN></U><SPAN 

style="FONT-SIZE: 10pt"><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt">(Jurisdiction of incorporation or 

organization)<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><SPAN 

style="mso-spacerun: yes">  </SPAN><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><U><SPAN 

style="FONT-SIZE: 10pt">P.O. Box 427, Chilliwack, British Columbia<SPAN 

style="mso-spacerun: yes">  </SPAN>V2P 6J7<o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt">(Address of principal executive 

offices)<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt">Securities to be registered pursuant to Section 12(b) of 

the Act: None<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><U><SPAN 

style="FONT-SIZE: 10pt">Securities to be registered pursuant to Section 12(g) of 

the Act:<o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><U><SPAN 

style="FONT-SIZE: 10pt">Common Shares, without par 

value<o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt">(Title of Class)<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt">Securities for which there is a 

reporting obligation pursuant to Section 15(d) of the Act: 

None<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt">Indicate the number of 

outstanding shares of each of the issuer's classes of capital or common stock as 

of the close of the period covered by the annual report.<SPAN 

style="mso-spacerun: yes">    

</SPAN>10,676,718<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><SPAN 

style="mso-spacerun: yes">                   

</SPAN><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 6.5pt; mso-bidi-font-size: 10.0pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">Indicate by check mark 

whether the registrant (1) has filed all reports required to be filed by Section 

13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 

months (or for such shorter period that the registrant was required to file such 

reports), and (2) has been subject to such filing requirements for the past 

ninety days.<SPAN style="mso-spacerun: yes">      

</SPAN>Yes <U>XXX</U><SPAN style="mso-spacerun: yes">   </SPAN>No 

___<U><SPAN style="mso-spacerun: yes">   

</SPAN></U><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 6.5pt; mso-bidi-font-size: 10.0pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">Indicate by check mark which 

financial statement item the registrant has elected to follow: Item 17 

<U>XXX</U><SPAN style="mso-spacerun: yes">   </SPAN>Item 18 

___<o:p></o:p></SPAN></P><SPAN 

style="FONT-SIZE: 12pt; FONT-FAMILY: 'Courier New'; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: 'Times New Roman'; mso-font-kerning: 14.0pt; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA"><BR 

style="PAGE-BREAK-BEFORE: always; mso-special-character: line-break" 

clear=all></SPAN>

<P class=MsoHeader style="tab-stops: .5in"><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">Index to Exhibits on Page 

<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><B 

style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 10pt">CALAIS 

RESOURCES INC.<o:p></o:p></SPAN></B></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><B 

style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 10pt">TABLE OF 

CONTENTS<o:p></o:p></SPAN></B></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><B 

style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 10pt">PART 

I<o:p></o:p></SPAN></B></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><B 

style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></B></P>

<P class=MsoFootnoteText><SPAN style="mso-bidi-font-weight: bold">Item<SPAN 

style="mso-spacerun: yes">  </SPAN>1.<SPAN 

style="mso-spacerun: yes">   </SPAN>Identity of Directors, Senior 

Management and <o:p></o:p></SPAN></P>

<P class=MsoFootnoteText><SPAN style="mso-bidi-font-weight: bold"><SPAN 

style="mso-spacerun: yes">           

</SPAN>Advisers </SPAN>......................................<SPAN 

style="mso-spacerun: yes">   </SPAN><SPAN class=msoDel><DEL 

cite="mailto:srreid" datetime="2002-12-03T12:21">n/a</DEL></SPAN><INS 

cite="mailto:srreid" datetime="2002-12-03T12:21">03</INS><SPAN 

style="mso-bidi-font-weight: bold"><o:p></o:p></SPAN></P>

<P class=MsoFootnoteText><SPAN style="mso-bidi-font-weight: bold">Item<SPAN 

style="mso-spacerun: yes">  </SPAN>2.<SPAN 

style="mso-spacerun: yes">   </SPAN>Offer Statistics and Expected 

Timetable</SPAN>........<SPAN style="mso-bidi-font-weight: bold"><SPAN 

style="mso-tab-count: 1">  </SPAN><SPAN class=msoDel><DEL 

cite="mailto:srreid" datetime="2002-12-03T12:21">n/a</DEL></SPAN><INS 

cite="mailto:srreid" datetime="2002-12-03T12:21">03</INS><o:p></o:p></SPAN></P>

<P class=MsoFootnoteText><SPAN style="mso-bidi-font-weight: bold">Item<SPAN 

style="mso-spacerun: yes">  </SPAN>3.<SPAN 

style="mso-spacerun: yes">   </SPAN>Key 

Information..</SPAN>..............................<SPAN 

style="mso-bidi-font-weight: bold"> <SPAN style="mso-tab-count: 1"></SPAN><SPAN 

style="mso-spacerun: yes"> </SPAN>03<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Item<SPAN style="mso-spacerun: yes">  

</SPAN>4.<SPAN style="mso-spacerun: yes">   </SPAN>Information on the 

Company..................... <SPAN style="mso-tab-count: 1"></SPAN><SPAN 

style="mso-spacerun: yes"> </SPAN><SPAN class=msoDel><DEL 

cite="mailto:srreid" datetime="2002-12-03T13:58">04</DEL></SPAN><INS 

cite="mailto:srreid" datetime="2002-12-03T13:58">05</INS><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Item<SPAN style="mso-spacerun: yes">  

</SPAN>5.<SPAN style="mso-spacerun: yes">   </SPAN>Operating and 

Financial Review and Prospects...<SPAN style="mso-spacerun: yes">   

</SPAN><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:58">09</DEL></SPAN><INS cite="mailto:srreid" 

datetime="2002-12-03T13:58">11</INS><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Item<SPAN style="mso-spacerun: yes">  

</SPAN>6.<SPAN style="mso-spacerun: yes">   </SPAN>Directors, Senior 

Management and Employees.....<SPAN style="mso-spacerun: yes">   

</SPAN><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:58">13</DEL></SPAN><INS cite="mailto:srreid" 

datetime="2002-12-03T13:58">1</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T14:59">4</INS><o:p></o:p></SPAN></P>

<P class=MsoFootnoteText>Item<SPAN style="mso-spacerun: yes">  

</SPAN>7.<SPAN style="mso-spacerun: yes">   </SPAN>Major Shareholders 

& Related Party<SPAN style="mso-spacerun: yes">     

</SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><SPAN 

style="mso-spacerun: yes">           

</SPAN>Transactions...................................<SPAN 

style="mso-spacerun: yes">   </SPAN><SPAN class=msoDel><DEL 

cite="mailto:srreid" datetime="2002-12-03T13:58">15</DEL></SPAN><INS 

cite="mailto:srreid" datetime="2002-12-03T13:58">17</INS><o:p></o:p></SPAN></P>

<P class=MsoFootnoteText>Item<SPAN style="mso-spacerun: yes">  

</SPAN>8.<SPAN style="mso-spacerun: yes">   </SPAN>Financial 

Information.......................... <SPAN 

style="mso-tab-count: 1"></SPAN><SPAN 

style="mso-spacerun: yes"> </SPAN><SPAN class=msoDel><DEL 

cite="mailto:srreid" datetime="2002-12-03T13:58">16</DEL></SPAN><INS 

cite="mailto:srreid" datetime="2002-12-03T13:58">19</INS></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Item<SPAN style="mso-spacerun: yes">  

</SPAN>9.<SPAN style="mso-spacerun: yes">   </SPAN>The Offer and 

Listing..........................<SPAN style="mso-spacerun: yes">   

</SPAN><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:58">17</DEL></SPAN><INS cite="mailto:srreid" 

datetime="2002-12-03T13:59">19</INS><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Item<SPAN style="mso-spacerun: yes">  

</SPAN>10.<SPAN style="mso-spacerun: yes">  </SPAN>Additional 

Information.........................<SPAN style="mso-spacerun: yes">   

</SPAN><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:59">18</DEL></SPAN><INS cite="mailto:srreid" 

datetime="2002-12-03T13:59">20</INS><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Item<SPAN style="mso-spacerun: yes">  

</SPAN>11.<SPAN style="mso-spacerun: yes">  </SPAN>Quantitative and 

Qualitative Disclosures <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN 

style="mso-spacerun: yes">           

</SPAN>About Market Risk..............................<SPAN 

style="mso-spacerun: yes">   </SPAN><SPAN class=msoDel><DEL 

cite="mailto:srreid" datetime="2002-12-03T13:59">23</DEL></SPAN><INS 

cite="mailto:srreid" datetime="2002-12-03T13:59">27</INS><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Item<SPAN style="mso-spacerun: yes">  

</SPAN>12.<SPAN style="mso-spacerun: yes">  </SPAN>Description of 

Securities Other than Equity <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN 

style="mso-spacerun: yes">           

</SPAN>Securities.....................................<SPAN 

style="mso-spacerun: yes">   </SPAN><SPAN class=msoDel><DEL 

cite="mailto:srreid" datetime="2002-12-03T13:59">n/a</DEL></SPAN><INS 

cite="mailto:srreid" datetime="2002-12-03T13:59">27</INS><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><B 

style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 10pt">PART 

II<o:p></o:p></SPAN></B></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Item 13.<SPAN style="mso-spacerun: yes">   

</SPAN>Defaults, Dividend Arrearages and Delinquencies<SPAN 

style="mso-spacerun: yes">  </SPAN><INS cite="mailto:srreid" 

datetime="2002-12-03T14:58"><SPAN 

style="mso-spacerun: yes"> </SPAN></INS><SPAN class=msoDel><DEL 

cite="mailto:srreid" datetime="2002-12-03T13:59">n/a</DEL></SPAN><INS 

cite="mailto:srreid" datetime="2002-12-03T13:59">27</INS><SPAN 

style="mso-spacerun: yes">  </SPAN><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Item 14.<SPAN style="mso-spacerun: yes">   

</SPAN>Material Modifications to <INS cite="mailto:srreid" 

datetime="2002-12-03T14:41">the </INS>Rights of Security <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN 

style="mso-spacerun: yes">           

</SPAN>Holders and Use of Proceeds....................<SPAN 

style="mso-spacerun: yes">   </SPAN><SPAN class=msoDel><DEL 

cite="mailto:srreid" datetime="2002-12-03T13:59">24</DEL></SPAN><INS 

cite="mailto:srreid" datetime="2002-12-03T13:59">27</INS><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><B 

style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 10pt">PART 

III<o:p></o:p></SPAN></B></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Item 17.<SPAN style="mso-spacerun: yes">   

</SPAN>Financial Statements...........................<SPAN 

style="mso-spacerun: yes">   </SPAN><SPAN class=msoDel><DEL 

cite="mailto:srreid" datetime="2002-12-03T13:59">25</DEL></SPAN><INS 

cite="mailto:srreid" datetime="2002-12-03T13:59">2</INS><INS 

cite="mailto:srreid" datetime="2002-12-03T14:59">7</INS><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Item 18.<SPAN style="mso-spacerun: yes">   

</SPAN>Financial Statements...........................<SPAN 

style="mso-spacerun: yes">   </SPAN><SPAN class=msoDel><DEL 

cite="mailto:srreid" datetime="2002-12-03T13:59">n/a</DEL></SPAN><INS 

cite="mailto:srreid" datetime="2002-12-03T13:59">28</INS><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Item 19.<SPAN style="mso-spacerun: yes">   

</SPAN>Exhibits.......................................<SPAN 

style="mso-spacerun: yes">   </SPAN><SPAN class=msoDel><DEL 

cite="mailto:srreid" datetime="2002-12-03T13:59">25</DEL></SPAN><INS 

cite="mailto:srreid" datetime="2002-12-03T13:59">28</INS><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Signature 

Page............................................<SPAN 

style="mso-tab-count: 1">  </SPAN><SPAN class=msoDel><DEL 

cite="mailto:srreid" datetime="2002-12-03T13:59">26</DEL></SPAN><INS 

cite="mailto:srreid" datetime="2002-12-03T13:59">29</INS><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Certification 

............................................<SPAN 

style="mso-tab-count: 1">  </SPAN><SPAN class=msoDel><DEL 

cite="mailto:srreid" datetime="2002-12-03T13:59">27</DEL></SPAN><INS 

cite="mailto:srreid" 

datetime="2002-12-03T13:59">30</INS><o:p></o:p></SPAN></P><SPAN 

style="FONT-SIZE: 10pt; FONT-FAMILY: 'Courier New'; mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: 'Times New Roman'; mso-font-kerning: 14.0pt; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA"><BR 

style="PAGE-BREAK-BEFORE: always" clear=all></SPAN>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B><U><SPAN 

style="FONT-SIZE: 10pt"><SPAN style="mso-prop-change: pdowad 20021203T1141"><INS 

cite="mailto:pdowad" datetime="2002-12-03T11:29"><U><SPAN 

style="mso-prop-change: pdowad 20021203T1141">ITEM 1.<SPAN 

style="mso-spacerun: yes">  </SPAN>IDENTITY OF DIRECTORS, SENIOR MANAGEMENT 

AND ADVISERS<SPAN 

style="mso-prop-change: pdowad 20021203T1141"><o:p></o:p></SPAN></SPAN></U></INS></SPAN></SPAN></U></B></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1129"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" datetime="2002-12-03T11:29"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1129"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" 

datetime="2002-12-03T11:29">Not applicable.<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-ALIGN: justify; mso-list: none; mso-list-ins: pdowad 20021203T1129"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" datetime="2002-12-03T11:29"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1129"><B><U><SPAN 

style="FONT-SIZE: 10pt"><SPAN style="mso-prop-change: pdowad 20021203T1141"><INS 

cite="mailto:pdowad" datetime="2002-12-03T11:29"><U><SPAN 

style="mso-prop-change: pdowad 20021203T1141">ITEM 2.<SPAN 

style="mso-spacerun: yes">  </SPAN>OFFER STATISTICS AND EXPECTED 

TIMETABLE<SPAN 

style="mso-prop-change: pdowad 20021203T1141"><o:p></o:p></SPAN></SPAN></U></INS></SPAN></SPAN></U></B></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1129"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" datetime="2002-12-03T11:29"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1129"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" 

datetime="2002-12-03T11:29">Not applicable</INS><INS cite="mailto:pdowad" 

datetime="2002-12-03T11:30">.</INS><INS cite="mailto:pdowad" 

datetime="2002-12-03T11:29"><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1129"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" datetime="2002-12-03T11:29"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1129"><B><U><SPAN 

style="FONT-SIZE: 10pt">ITEM 3.<SPAN style="mso-spacerun: yes">  </SPAN>KEY 

INFORMATION</SPAN></U></B><SPAN style="FONT-SIZE: 10pt"><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B><SPAN 

style="FONT-SIZE: 10pt"><SPAN style="mso-prop-change: pdowad 20021203T1141"><INS 

cite="mailto:pdowad" datetime="2002-12-03T11:40"><SPAN 

style="mso-prop-change: pdowad 20021203T1141">A.<SPAN 

style="mso-tab-count: 1">    </SPAN></SPAN></INS><SPAN 

style="mso-prop-change: pdowad 20021203T1141"><SPAN 

style="mso-prop-change: pdowad 20021203T1141">Selected historical financial 

data<SPAN 

style="mso-prop-change: pdowad 20021203T1141"><o:p></o:p></SPAN></SPAN></SPAN></SPAN></SPAN></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B><U><SPAN 

style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

selected financial data <INS cite="mailto:pdowad" datetime="2002-12-03T11:31">as 

</INS>of <INS cite="mailto:pdowad" datetime="2002-12-03T11:32">and for </INS>the 

Company for Fiscal year ended May 31, 2002 is derived from the financial 

statements of the Company which have been audited by KPMG </SPAN><SPAN 

style="FONT-SIZE: 8pt; mso-bidi-font-size: 10.0pt">LLP</SPAN><SPAN 

style="FONT-SIZE: 10pt">, Independent Accountants, as indicated in their 

auditor’s report which is included elsewhere in this report. <INS 

cite="mailto:pdowad" datetime="2002-12-03T11:31"><SPAN 

style="mso-spacerun: yes"> </SPAN>The selected financial data as at May 31, 

2001 and for the years ended May 31, 2001</INS><INS cite="mailto:pdowad" 

datetime="2002-12-03T11:32"> and 2000 have been extracted from the financial 

statements of the Company included herein, which financial statements were 

audited by other auditors.<SPAN style="mso-spacerun: yes">  </SPAN>The 

selected financial data as of May 31, 2000, 1999 and 1998 and for the years 

ended May 31, 1999 and 1998 has been extracted from financial statements not 

included herein.</INS><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

selected financial data should be read in conjunction with the consolidated 

financial statements and other financial information included elsewhere in this 

report.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company has not declared any dividends since incorporation and does not 

anticipate that it will do so in the foreseeable future.<SPAN 

style="mso-spacerun: yes">  </SPAN>The present policy of the Company is to 

retain future earnings for use in its operations and the expansion of its 

business.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

following selected financial data is derived from the financial statements of 

the Company, which have been prepared in accordance with Canadian Generally 

Accepted Accounting Principles (GAAP), the application of which, in the case of 

the Company, conforms in all material respects for the periods presented with 

U.S. GAAP, except as disclosed in footnotes to the financial 

statements.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt">Selected Financial Data<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt">(CDN$ in 000, except per share 

data)<o:p></o:p></SPAN></P>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <o:p></o:p></P>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <o:p></o:p></P>

<TABLE 

style="MARGIN-LEFT: -0.05in; WIDTH: 535.5pt; BORDER-COLLAPSE: collapse; mso-padding-alt: 0in 5.4pt 0in 5.4pt" 

cellSpacing=0 cellPadding=0 width=714 border=0>

<TBODY>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in" 

vAlign=top width=30>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 215.85pt; PADDING-TOP: 0in" 

vAlign=top width=288>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 54.05pt; PADDING-TOP: 0in" 

vAlign=top width=72>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">Year Ended 

5/31/02<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 58.55pt; PADDING-TOP: 0in" 

vAlign=top width=78>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">Year Ended 

5/31/01<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.5pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">Year Ended 

5/31/00<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 57.1pt; PADDING-TOP: 0in" 

vAlign=top width=76>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">Year Ended 

5/31/99<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.95pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">Year Ended 

5/31/98<o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in" 

vAlign=top width=30>

<P class=MsoNormal style="MARGIN-LEFT: 51.2pt; TEXT-INDENT: -51.2pt"><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 215.85pt; PADDING-TOP: 0in" 

vAlign=top width=288>

<P class=MsoNormal style="MARGIN-LEFT: 51.2pt; TEXT-INDENT: -51.2pt"><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><SPAN 

style="mso-spacerun: yes"> </SPAN><B><SPAN 

style="mso-prop-change: pdowad 20021203T1134"><INS cite="mailto:pdowad" 

datetime="2002-12-03T11:34"><SPAN 

style="mso-prop-change: pdowad 20021203T1134">Canadian GAAP<SPAN 

style="mso-prop-change: pdowad 20021203T1134"><o:p></o:p></SPAN></SPAN></INS></SPAN></B></SPAN></P>

<P class=MsoNormal 

style="MARGIN-LEFT: 51.2pt; TEXT-INDENT: -51.2pt; mso-list: none; mso-list-ins: pdowad 20021203T1134"><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><INS 

cite="mailto:pdowad" datetime="2002-12-03T11:34"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="MARGIN-LEFT: 51.2pt; TEXT-INDENT: -51.2pt; mso-text-indent-alt: -51.2pt; mso-list: none; mso-list-ins: pdowad 20021203T1134"><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><INS 

cite="mailto:pdowad" datetime="2002-12-03T11:34"><SPAN 

style="mso-spacerun: yes"> </SPAN></INS>Revenues<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 54.05pt; PADDING-TOP: 0in" 

vAlign=top width=72>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$0 

<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 58.55pt; PADDING-TOP: 0in" 

vAlign=top width=78>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$0<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.5pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$0<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 57.1pt; PADDING-TOP: 0in" 

vAlign=top width=76>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$0<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.95pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$0<o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in" 

vAlign=top width=30>

<P class=MsoNormal style="MARGIN-LEFT: 51.2pt; TEXT-INDENT: -51.2pt"><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 215.85pt; PADDING-TOP: 0in" 

vAlign=top width=288>

<P class=MsoNormal style="MARGIN-LEFT: 51.2pt; TEXT-INDENT: -51.2pt"><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><SPAN 

style="mso-spacerun: yes"> </SPAN>Loss for the 

year<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 54.05pt; PADDING-TOP: 0in" 

vAlign=top width=72>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($551)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 58.55pt; PADDING-TOP: 0in" 

vAlign=top width=78>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($748)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.5pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($11,795)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 57.1pt; PADDING-TOP: 0in" 

vAlign=top width=76>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($619)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.95pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($856)<o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in" 

vAlign=top width=30>

<P class=MsoNormal style="MARGIN-LEFT: 44.1pt"><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 215.85pt; PADDING-TOP: 0in" 

vAlign=top width=288>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><SPAN 

style="mso-spacerun: yes"> </SPAN>Loss per 

Share<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 54.05pt; PADDING-TOP: 0in" 

vAlign=top width=72>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($0.05)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 58.55pt; PADDING-TOP: 0in" 

vAlign=top width=78>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($0.08)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.5pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($1.24)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 57.1pt; PADDING-TOP: 0in" 

vAlign=top width=76>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($0.07)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.95pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($0.11)<o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in" 

vAlign=top width=30>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 215.85pt; PADDING-TOP: 0in" 

vAlign=top width=288>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><SPAN 

style="mso-spacerun: yes"> </SPAN>Dividends Per 

Share<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 54.05pt; PADDING-TOP: 0in" 

vAlign=top width=72>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$0.00<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 58.55pt; PADDING-TOP: 0in" 

vAlign=top width=78>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$0.00<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.5pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$0.00<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 57.1pt; PADDING-TOP: 0in" 

vAlign=top width=76>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$0.00<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.95pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$0.00<o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in" 

vAlign=top width=30>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 215.85pt; PADDING-TOP: 0in" 

vAlign=top width=288>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><SPAN 

style="mso-spacerun: yes"> </SPAN>Wtg. Avg. Shares 

(000)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 54.05pt; PADDING-TOP: 0in" 

vAlign=top width=72>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">10,185<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 58.55pt; PADDING-TOP: 0in" 

vAlign=top width=78>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">9,618<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.5pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">9,505<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 57.1pt; PADDING-TOP: 0in" 

vAlign=top width=76>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">9,126<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.95pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">7,943<o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in" 

vAlign=top width=30>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 215.85pt; PADDING-TOP: 0in" 

vAlign=top width=288>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 54.05pt; PADDING-TOP: 0in" 

vAlign=top width=72>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 58.55pt; PADDING-TOP: 0in" 

vAlign=top width=78>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.5pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 57.1pt; PADDING-TOP: 0in" 

vAlign=top width=76>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.95pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in" 

vAlign=top width=30>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 215.85pt; PADDING-TOP: 0in" 

vAlign=top width=288>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><SPAN 

style="mso-spacerun: yes"> </SPAN>Working Capital 

Deficiency<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 54.05pt; PADDING-TOP: 0in" 

vAlign=top width=72>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($2,625)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 58.55pt; PADDING-TOP: 0in" 

vAlign=top width=78>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($1,262)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.5pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($5,241)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 57.1pt; PADDING-TOP: 0in" 

vAlign=top width=76>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($5,334)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.95pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($2,567)<o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in" 

vAlign=top width=30>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 215.85pt; PADDING-TOP: 0in" 

vAlign=top width=288>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><SPAN 

style="mso-spacerun: yes"> </SPAN>Long-Term 

Debt<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 54.05pt; PADDING-TOP: 0in" 

vAlign=top width=72>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$5,097<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 58.55pt; PADDING-TOP: 0in" 

vAlign=top width=78>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$5,721<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.5pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$0<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 57.1pt; PADDING-TOP: 0in" 

vAlign=top width=76>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$0<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.95pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$0<o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in" 

vAlign=top width=30>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 215.85pt; PADDING-TOP: 0in" 

vAlign=top width=288>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><SPAN 

style="mso-spacerun: yes"> </SPAN>Mineral 

Properties<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 54.05pt; PADDING-TOP: 0in" 

vAlign=top width=72>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$12,681<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 58.55pt; PADDING-TOP: 0in" 

vAlign=top width=78>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$12,203<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.5pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$12,069<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 57.1pt; PADDING-TOP: 0in" 

vAlign=top width=76>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$21,589<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.95pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$15,050<o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in" 

vAlign=top width=30>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 215.85pt; PADDING-TOP: 0in" 

vAlign=top width=288>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><SPAN 

style="mso-spacerun: yes"> </SPAN>Shareholder’s 

Equity<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 54.05pt; PADDING-TOP: 0in" 

vAlign=top width=72>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$5,086<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 58.55pt; PADDING-TOP: 0in" 

vAlign=top width=78>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$5,390<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.5pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$6,078<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 57.1pt; PADDING-TOP: 0in" 

vAlign=top width=76>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$17,873<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.95pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$15,147<o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in" 

vAlign=top width=30>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 215.85pt; PADDING-TOP: 0in" 

vAlign=top width=288>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><SPAN 

style="mso-spacerun: yes"> </SPAN>Total 

Assets<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 54.05pt; PADDING-TOP: 0in" 

vAlign=top width=72>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$13,166<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 58.55pt; PADDING-TOP: 0in" 

vAlign=top width=78>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$12,788<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.5pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$12,799<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 57.1pt; PADDING-TOP: 0in" 

vAlign=top width=76>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$24,306<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.95pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$18,865<o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in" 

vAlign=top width=30>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 215.85pt; PADDING-TOP: 0in" 

vAlign=top width=288>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 54.05pt; PADDING-TOP: 0in" 

vAlign=top width=72>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 58.55pt; PADDING-TOP: 0in" 

vAlign=top width=78>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.5pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 57.1pt; PADDING-TOP: 0in" 

vAlign=top width=76>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.95pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in" 

vAlign=top width=30>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 215.85pt; PADDING-TOP: 0in" 

vAlign=top width=288>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><SPAN 

style="mso-spacerun: yes"> </SPAN><B><SPAN 

style="mso-prop-change: pdowad 20021203T1135"><SPAN 

style="mso-prop-change: pdowad 20021203T1135">US GAAP <SPAN 

style="mso-prop-change: pdowad 20021203T1135"><INS cite="mailto:pdowad" 

datetime="2002-12-03T11:34"><SPAN 

style="mso-prop-change: pdowad 20021203T1135"><o:p></o:p></SPAN></INS></SPAN></SPAN></SPAN></B></SPAN></P>

<P class=MsoNormal 

style="mso-list: none; mso-list-ins: pdowad 20021203T1134"><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><INS 

cite="mailto:pdowad" datetime="2002-12-03T11:34"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1134"><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><INS 

cite="mailto:pdowad" datetime="2002-12-03T11:34"><SPAN 

style="mso-spacerun: yes"> </SPAN></INS>Mineral Properties 

(3)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 54.05pt; PADDING-TOP: 0in" 

vAlign=top width=72>

<P class=MsoNormal 

style="TEXT-ALIGN: right; mso-list: none; mso-list-ins: srreid 20021203T1221" 

align=right><SPAN style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><INS 

cite="mailto:srreid" datetime="2002-12-03T12:21"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: right; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1221" 

align=right><SPAN style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><INS 

cite="mailto:srreid" datetime="2002-12-03T12:21"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$0<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 58.55pt; PADDING-TOP: 0in" 

vAlign=top width=78>

<P class=MsoNormal 

style="TEXT-ALIGN: right; mso-list: none; mso-list-ins: srreid 20021203T1221" 

align=right><SPAN style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><INS 

cite="mailto:srreid" datetime="2002-12-03T12:21"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: right; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1221" 

align=right><SPAN style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><INS 

cite="mailto:srreid" datetime="2002-12-03T12:21"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$0<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.5pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal 

style="TEXT-ALIGN: right; mso-list: none; mso-list-ins: srreid 20021203T1221" 

align=right><SPAN style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><INS 

cite="mailto:srreid" datetime="2002-12-03T12:21"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: right; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1221" 

align=right><SPAN style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><INS 

cite="mailto:srreid" datetime="2002-12-03T12:21"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$0<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 57.1pt; PADDING-TOP: 0in" 

vAlign=top width=76>

<P class=MsoNormal 

style="TEXT-ALIGN: right; mso-list: none; mso-list-ins: srreid 20021203T1221" 

align=right><SPAN style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><INS 

cite="mailto:srreid" datetime="2002-12-03T12:21"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: right; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1221" 

align=right><SPAN style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><INS 

cite="mailto:srreid" datetime="2002-12-03T12:21"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$0<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.95pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal 

style="TEXT-ALIGN: right; mso-list: none; mso-list-ins: srreid 20021203T1222" 

align=right><SPAN style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><INS 

cite="mailto:srreid" datetime="2002-12-03T12:22"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: right; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1222" 

align=right><SPAN style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><INS 

cite="mailto:srreid" datetime="2002-12-03T12:22"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$0<o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in" 

vAlign=top width=30>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 215.85pt; PADDING-TOP: 0in" 

vAlign=top width=288>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><SPAN 

style="mso-spacerun: yes"> </SPAN><SPAN class=msoDel><DEL 

cite="mailto:pdowad" datetime="2002-12-03T11:35">US GAAP 

</DEL></SPAN>Shareholders deficiency<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 54.05pt; PADDING-TOP: 0in" 

vAlign=top width=72>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($7,596)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 58.55pt; PADDING-TOP: 0in" 

vAlign=top width=78>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($6,813)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.5pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($5,992)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 57.1pt; PADDING-TOP: 0in" 

vAlign=top width=76>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($3,716)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.95pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$97<o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in" 

vAlign=top width=30>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 215.85pt; PADDING-TOP: 0in" 

vAlign=top width=288>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><SPAN 

style="mso-spacerun: yes"> </SPAN><SPAN class=msoDel><DEL 

cite="mailto:pdowad" datetime="2002-12-03T11:35">US GAAP 

</DEL></SPAN>Total Assets<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 54.05pt; PADDING-TOP: 0in" 

vAlign=top width=72>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$485<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 58.55pt; PADDING-TOP: 0in" 

vAlign=top width=78>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$585<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.5pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$729<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 57.1pt; PADDING-TOP: 0in" 

vAlign=top width=76>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$2,716<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.95pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$3,815<o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in" 

vAlign=top width=30>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 215.85pt; PADDING-TOP: 0in" 

vAlign=top width=288>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 54.05pt; PADDING-TOP: 0in" 

vAlign=top width=72>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 58.55pt; PADDING-TOP: 0in" 

vAlign=top width=78>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.5pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 57.1pt; PADDING-TOP: 0in" 

vAlign=top width=76>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.95pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in" 

vAlign=top width=30>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 215.85pt; PADDING-TOP: 0in" 

vAlign=top width=288>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><SPAN 

style="mso-spacerun: yes"> </SPAN><SPAN class=msoDel><DEL 

cite="mailto:pdowad" datetime="2002-12-03T11:35">US GAAP </DEL></SPAN>Net 

Loss (1), (2)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 54.05pt; PADDING-TOP: 0in" 

vAlign=top width=72>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($964)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 58.55pt; PADDING-TOP: 0in" 

vAlign=top width=78>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($1,004)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.5pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($2,275)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 57.1pt; PADDING-TOP: 0in" 

vAlign=top width=76>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($7,159)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.95pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($10,744)<o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in" 

vAlign=top width=30>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 215.85pt; PADDING-TOP: 0in" 

vAlign=top width=288>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><SPAN 

style="mso-spacerun: yes"> </SPAN><SPAN class=msoDel><DEL 

cite="mailto:pdowad" datetime="2002-12-03T11:35">US GAAP 

</DEL></SPAN>EPS<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 54.05pt; PADDING-TOP: 0in" 

vAlign=top width=72>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($0.09)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 58.55pt; PADDING-TOP: 0in" 

vAlign=top width=78>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($0.10)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.5pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($0.24)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 57.1pt; PADDING-TOP: 0in" 

vAlign=top width=76>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($0.78)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.95pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($1.35)<o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in" 

vAlign=top width=30>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 513pt; PADDING-TOP: 0in" 

vAlign=top width=684 colSpan=8>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in" 

vAlign=top width=30>

<P class=MsoNormal 

style="MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; tab-stops: list 27.0pt; mso-list: l16 level1 lfo21; mso-list-change: '\(%1\:1\:0\:\)' pdowad 20021203T1127"><![if !supportLists]><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">(1)<SPAN 

style="FONT: 7pt 'Times New Roman'">        

</SPAN></SPAN><![endif]><![if !supportEmptyParas]> <![endif]><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 328.45pt; PADDING-TOP: 0in" 

vAlign=top width=438 colSpan=3>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">Cumulative Net Loss 

since incorporation is ($29,546).<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.05pt; PADDING-TOP: 0in" 

vAlign=top width=84>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 58.5pt; PADDING-TOP: 0in" 

vAlign=top width=78 colSpan=3>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63pt; PADDING-TOP: 0in" 

vAlign=top width=84>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in" 

vAlign=top width=30>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 215.85pt; PADDING-TOP: 0in" 

vAlign=top width=288>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 54.05pt; PADDING-TOP: 0in" 

vAlign=top width=72>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 58.55pt; PADDING-TOP: 0in" 

vAlign=top width=78>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.05pt; PADDING-TOP: 0in" 

vAlign=top width=84>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 58.5pt; PADDING-TOP: 0in" 

vAlign=top width=78 colSpan=3>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63pt; PADDING-TOP: 0in" 

vAlign=top width=84>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD></TR>

<TR style="HEIGHT: 8.1pt">

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in; HEIGHT: 8.1pt" 

vAlign=top width=30>

<P class=MsoNormal 

style="MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; tab-stops: list 27.0pt; mso-list: l16 level1 lfo21; mso-list-change: '\(%1\:2\:0\:\)' pdowad 20021203T1127"><![if !supportLists]><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">(2)<SPAN 

style="FONT: 7pt 'Times New Roman'">        

</SPAN></SPAN><![endif]><![if !supportEmptyParas]> <![endif]><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 391.5pt; PADDING-TOP: 0in; HEIGHT: 8.1pt" 

vAlign=top width=522 colSpan=4>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">Canadian GAAP Net Loss 

ha<INS cite="mailto:pdowad" datetime="2002-12-03T11:35">s</INS><SPAN 

class=msoDel><DEL cite="mailto:pdowad" 

datetime="2002-12-03T11:35">ve</DEL></SPAN> been adjusted to US GAAP for 

the following:<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 58.5pt; PADDING-TOP: 0in; HEIGHT: 8.1pt" 

vAlign=top width=78 colSpan=3>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63pt; PADDING-TOP: 0in; HEIGHT: 8.1pt" 

vAlign=top width=84>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in" 

vAlign=top width=30>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 215.85pt; PADDING-TOP: 0in" 

vAlign=top width=288>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">Canadian GAAP Net 

Loss<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 54.05pt; PADDING-TOP: 0in" 

vAlign=top width=72>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($551)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 58.55pt; PADDING-TOP: 0in" 

vAlign=top width=78>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($748)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.5pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($11,795)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 57.1pt; PADDING-TOP: 0in" 

vAlign=top width=76>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($619)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.95pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($856)<o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in" 

vAlign=top width=30>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 215.85pt; PADDING-TOP: 0in" 

vAlign=top width=288>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">Expensed exploration 

costs<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 54.05pt; PADDING-TOP: 0in" 

vAlign=top width=72>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">(479)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 58.55pt; PADDING-TOP: 0in" 

vAlign=top width=78>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">(446)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.5pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">(1,879)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 57.1pt; PADDING-TOP: 0in" 

vAlign=top width=76>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">(6,540)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.95pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">(9,888)<o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in" 

vAlign=top width=30>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 215.85pt; PADDING-TOP: 0in" 

vAlign=top width=288>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">Previously expensed 

costs under U.S. GAAP written off for Canadian 

GAAP<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 54.05pt; PADDING-TOP: 0in" 

vAlign=top width=72>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">– 

 <o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 58.55pt; PADDING-TOP: 0in" 

vAlign=top width=78>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">313<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.5pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">11,399<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 57.1pt; PADDING-TOP: 0in" 

vAlign=top width=76>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">– 

 <o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.95pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">– 

 <o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in" 

vAlign=top width=30>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 215.85pt; PADDING-TOP: 0in" 

vAlign=top width=288>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">Stock-based 

compensation <o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 54.05pt; PADDING-TOP: 0in" 

vAlign=top width=72>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">66<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 58.55pt; PADDING-TOP: 0in" 

vAlign=top width=78>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">(124)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.5pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">– 

 <o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 57.1pt; PADDING-TOP: 0in" 

vAlign=top width=76>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">– 

 <o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.95pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">– 

 <o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 22.5pt; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 0.5pt solid" 

vAlign=top width=30>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 215.85pt; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 0.5pt solid" 

vAlign=top width=288>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 54.05pt; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 0.5pt solid" 

vAlign=top width=72>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 58.55pt; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 0.5pt solid" 

vAlign=top width=78>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 63.5pt; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 0.5pt solid" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 57.1pt; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 0.5pt solid" 

vAlign=top width=76>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 63.95pt; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 0.5pt solid" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in" 

vAlign=top width=30>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 215.85pt; PADDING-TOP: 0in" 

vAlign=top width=288>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><SPAN 

style="mso-spacerun: yes">  </SPAN>US GAAP Net 

Loss<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 54.05pt; PADDING-TOP: 0in" 

vAlign=top width=72>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($964)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 58.55pt; PADDING-TOP: 0in" 

vAlign=top width=78>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($1,004)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.5pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($2,275)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 57.1pt; PADDING-TOP: 0in" 

vAlign=top width=76>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($7,159)<o:p></o:p></SPAN></P></TD>

<TD 

style="BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 63.95pt; PADDING-TOP: 0in; BORDER-BOTTOM: medium none; mso-border-top-alt: solid windowtext .5pt" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">($10,744)<o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in" 

vAlign=top width=30>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 215.85pt; PADDING-TOP: 0in" 

vAlign=top width=288>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 54.05pt; PADDING-TOP: 0in" 

vAlign=top width=72>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 58.55pt; PADDING-TOP: 0in" 

vAlign=top width=78>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.5pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 57.1pt; PADDING-TOP: 0in" 

vAlign=top width=76>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.95pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in" 

vAlign=top width=30>

<P class=MsoNormal 

style="MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; tab-stops: list 27.0pt; mso-list: l16 level1 lfo21; mso-list-change: '\(%1\:3\:0\:\)' pdowad 20021203T1127"><![if !supportLists]><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">(3)<SPAN 

style="FONT: 7pt 'Times New Roman'">        

</SPAN></SPAN><![endif]><![if !supportEmptyParas]> <![endif]><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 513pt; PADDING-TOP: 0in" 

vAlign=top width=684 colSpan=8>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">Amounts capitalized 

under Canadian GAAP have been adjusted to US GAAP as 

follows:<o:p></o:p></SPAN></P></TD></TR>

<TR style="HEIGHT: 12.6pt">

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in; HEIGHT: 12.6pt" 

vAlign=top width=30>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 215.85pt; PADDING-TOP: 0in; HEIGHT: 12.6pt" 

vAlign=top width=288>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">Canadian GAAP Mineral 

Properties<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 54.05pt; PADDING-TOP: 0in; HEIGHT: 12.6pt" 

vAlign=top width=72>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">12,681<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 58.55pt; PADDING-TOP: 0in; HEIGHT: 12.6pt" 

vAlign=top width=78>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">12,203<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.5pt; PADDING-TOP: 0in; HEIGHT: 12.6pt" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">12,070<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 57.1pt; PADDING-TOP: 0in; HEIGHT: 12.6pt" 

vAlign=top width=76>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">21,589<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.95pt; PADDING-TOP: 0in; HEIGHT: 12.6pt" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">15,050<o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 22.5pt; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 0.5pt solid" 

vAlign=top width=30>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <U><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></U></P></TD>

<TD 

style="BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 215.85pt; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 0.5pt solid" 

vAlign=top width=288>

<P class=MsoNormal><U><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">Cumulative Expensed 

exploration costs</SPAN></U><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 54.05pt; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 0.5pt solid" 

vAlign=top width=72>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">(12,681)<o:p></o:p></SPAN></P></TD>

<TD 

style="BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 58.55pt; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 0.5pt solid" 

vAlign=top width=78>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">(12,203)<o:p></o:p></SPAN></P></TD>

<TD 

style="BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 63.5pt; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 0.5pt solid" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">(12,070)<o:p></o:p></SPAN></P></TD>

<TD 

style="BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 58.05pt; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 0.5pt solid" 

vAlign=top width=77 colSpan=2>

<P class=MsoNormal style="MARGIN-RIGHT: -5.4pt; TEXT-ALIGN: right" 

align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">(21,589)<o:p></o:p></SPAN></P></TD>

<TD 

style="BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 63pt; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 0.5pt solid" 

vAlign=top width=84>

<P class=MsoNormal 

style="MARGIN-LEFT: 0.9pt; TEXT-INDENT: -0.9pt; TEXT-ALIGN: right" 

align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">(15,050)<o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in" 

vAlign=top width=30>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 215.85pt; PADDING-TOP: 0in" 

vAlign=top width=288>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><SPAN 

style="mso-spacerun: yes">  </SPAN>US GAAP Mineral 

Properties<U><o:p></o:p></U></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 54.05pt; PADDING-TOP: 0in" 

vAlign=top width=72>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$0<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 58.55pt; PADDING-TOP: 0in" 

vAlign=top width=78>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$0<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.5pt; PADDING-TOP: 0in" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$0<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 57.1pt; PADDING-TOP: 0in" 

vAlign=top width=76>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$0<o:p></o:p></SPAN></P></TD>

<TD 

style="BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 63.95pt; PADDING-TOP: 0in; BORDER-BOTTOM: medium none; mso-border-top-alt: solid windowtext .5pt" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">$0<o:p></o:p></SPAN></P></TD></TR>

<TR style="HEIGHT: 4.5pt">

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in; HEIGHT: 4.5pt" 

vAlign=top width=30>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 215.85pt; PADDING-TOP: 0in; HEIGHT: 4.5pt" 

vAlign=top width=288>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 54.05pt; PADDING-TOP: 0in; HEIGHT: 4.5pt" 

vAlign=top width=72>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 58.55pt; PADDING-TOP: 0in; HEIGHT: 4.5pt" 

vAlign=top width=78>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.5pt; PADDING-TOP: 0in; HEIGHT: 4.5pt" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 57.1pt; PADDING-TOP: 0in; HEIGHT: 4.5pt" 

vAlign=top width=76>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 63.95pt; PADDING-TOP: 0in; HEIGHT: 4.5pt" 

vAlign=top width=85 colSpan=2>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><o:p></o:p></SPAN></P></TD></TR><![if !supportMisalignedColumns]>

<TR height=0>

<TD 

style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" 

width=30></TD>

<TD 

style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" 

width=288></TD>

<TD 

style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" 

width=72></TD>

<TD 

style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" 

width=78></TD>

<TD 

style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" 

width=84></TD>

<TD 

style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" 

width=1></TD>

<TD 

style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" 

width=76></TD>

<TD 

style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" 

width=1></TD>

<TD 

style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" 

width=84></TD></TR><![endif]></TBODY></TABLE>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B><U><SPAN 

style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B><U><SPAN 

style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B><SPAN 

style="FONT-SIZE: 10pt"><SPAN style="mso-prop-change: pdowad 20021203T1141"><INS 

cite="mailto:pdowad" datetime="2002-12-03T11:40"><SPAN 

style="mso-prop-change: pdowad 20021203T1141">B.<SPAN 

style="mso-tab-count: 1">    </SPAN></SPAN></INS><SPAN 

style="mso-prop-change: pdowad 20021203T1141"><SPAN 

style="mso-prop-change: pdowad 20021203T1141">Exchange Rates<SPAN 

style="mso-prop-change: pdowad 20021203T1141"><o:p></o:p></SPAN></SPAN></SPAN></SPAN></SPAN></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B><U><SPAN 

style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

following table sets forth the <INS cite="mailto:pdowad" 

datetime="2002-12-03T11:36">high and low </INS>rate of exchange for the Canadian 

Dollar <INS cite="mailto:pdowad" datetime="2002-12-03T11:36">to the U.</INS><INS 

cite="mailto:pdowad" datetime="2002-12-03T11:37">S.</INS><INS 

cite="mailto:pdowad" datetime="2002-12-03T11:36"> dollar </INS>at the end of 

each of the five most recent fiscal years ended May 31st, the average rates for 

the year, and the range of high and low rates for each <SPAN class=msoDel><DEL 

cite="mailto:pdowad" datetime="2002-12-03T11:36">year</DEL></SPAN><INS 

cite="mailto:pdowad" datetime="2002-12-03T11:36">month in the last six months 

ended October 31, 2002</INS>.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">For 

purposes of this table, the rate of exchange means the noon buying rate in New 

York City for cable transfers in foreign currencies as certified for 

customs purposes by the Federal Reserve Bank of New York.<SPAN 

style="mso-spacerun: yes">  </SPAN>The table sets forth the number of 

Canadian Dollars required under that formula to buy one U.S. Dollar.   

The average rate means the average of the exchange rates on the last day of each 

month during the period. <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt">U.S. Dollar/Canadian Dollar<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 6.5pt; mso-bidi-font-size: 10.0pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><SPAN 

style="mso-spacerun: yes">                                 

</SPAN><SPAN style="mso-tab-count: 1">   </SPAN><U>Average<SPAN 

style="mso-spacerun: yes">    </SPAN>High<SPAN 

style="mso-spacerun: yes">     </SPAN>Low<SPAN 

style="mso-spacerun: yes">      

</SPAN><o:p></o:p></U></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt">Month Ended 10/31/02<SPAN 

style="mso-tab-count: 2">          

</SPAN><SPAN 

style="mso-spacerun: yes">               

</SPAN>1.60<SPAN style="mso-tab-count: 1">     </SPAN><SPAN 

style="mso-spacerun: yes">  </SPAN>1.56<SPAN 

style="mso-tab-count: 1">      

</SPAN><o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt">Month Ended 09/30/02<SPAN 

style="mso-tab-count: 2">          

</SPAN><SPAN 

style="mso-spacerun: yes">               

</SPAN>1.59<SPAN style="mso-tab-count: 1">     </SPAN><SPAN 

style="mso-spacerun: yes">  </SPAN>1.55<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt">Month Ended 08/31/02<SPAN 

style="mso-tab-count: 2">          

</SPAN><SPAN 

style="mso-spacerun: yes">               

</SPAN>1.60<SPAN style="mso-tab-count: 1">     </SPAN><SPAN 

style="mso-spacerun: yes">  </SPAN>1.55<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt">Month Ended 07/31/02<SPAN 

style="mso-tab-count: 2">          

</SPAN><SPAN 

style="mso-spacerun: yes">               

</SPAN>1.60<SPAN style="mso-tab-count: 1">     </SPAN><SPAN 

style="mso-spacerun: yes">  </SPAN>1.51<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt">Month Ended 06/30/02<SPAN 

style="mso-tab-count: 1">    </SPAN><SPAN 

style="mso-tab-count: 1">     </SPAN><SPAN 

style="mso-spacerun: yes">               </SPAN>1.55<SPAN 

style="mso-tab-count: 1">     </SPAN><SPAN 

style="mso-spacerun: yes">  </SPAN>1.50<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt">Month Ended 05/31/02<SPAN 

style="mso-tab-count: 2">          

</SPAN><SPAN 

style="mso-spacerun: yes">               

</SPAN>1.57<SPAN style="mso-tab-count: 1">     </SPAN><SPAN 

style="mso-spacerun: yes">  </SPAN>1.53<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt">Fiscal Year Ended 05/31/02<SPAN 

style="mso-tab-count: 2">          

</SPAN>1.57<SPAN style="mso-spacerun: yes">    </SPAN>1.60<SPAN 

style="mso-tab-count: 1">     </SPAN><SPAN 

style="mso-spacerun: yes">  </SPAN>1.52<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt">Fiscal Year Ended 05/31/01<SPAN 

style="mso-tab-count: 2">          

</SPAN>1.52<SPAN style="mso-spacerun: yes">    </SPAN>1.58<SPAN 

style="mso-tab-count: 1">     </SPAN><SPAN 

style="mso-spacerun: yes">  </SPAN>1.47<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt">Fiscal Year Ended 05/31/00<SPAN 

style="mso-tab-count: 2">          

</SPAN>1.47<SPAN style="mso-spacerun: yes">    </SPAN>1.51<SPAN 

style="mso-tab-count: 1">     </SPAN><SPAN 

style="mso-spacerun: yes">  </SPAN>1.44<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt">Fiscal Year Ended 05/31/99<SPAN 

style="mso-tab-count: 2">          

</SPAN>1.51<SPAN style="mso-spacerun: yes">    </SPAN>1.58<SPAN 

style="mso-tab-count: 1">     </SPAN><SPAN 

style="mso-spacerun: yes">  </SPAN>1.45<o:p></o:p></SPAN></P>

<P class=MsoNormal style="tab-stops: 373.5pt 6.0in 436.5pt"><SPAN 

style="FONT-SIZE: 10pt">Fiscal Year Ended 05/31/98<SPAN 

style="mso-spacerun: yes">           

</SPAN>1.14<SPAN style="mso-spacerun: yes">    </SPAN>1.46<SPAN 

style="mso-spacerun: yes">       

</SPAN>1.37<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt">The current rate of exchange 

was 1.58 on October 31, 2002.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal 

style="TEXT-ALIGN: justify; mso-list: none; mso-list-ins: pdowad 20021203T1137"><B><SPAN 

style="FONT-SIZE: 10pt"><SPAN style="mso-prop-change: pdowad 20021203T1141"><INS 

cite="mailto:pdowad" datetime="2002-12-03T11:40"><SPAN 

style="mso-prop-change: pdowad 20021203T1141">C.<SPAN 

style="mso-tab-count: 1">    </SPAN></SPAN></INS><SPAN 

style="mso-prop-change: pdowad 20021203T1141"><INS cite="mailto:pdowad" 

datetime="2002-12-03T11:38"><SPAN 

style="mso-prop-change: pdowad 20021203T1141">Capitalization and 

indebtedness</SPAN></INS><SPAN 

style="mso-prop-change: pdowad 20021203T1141"><INS cite="mailto:pdowad" 

datetime="2002-12-03T11:37"><SPAN 

style="mso-prop-change: pdowad 20021203T1141"><o:p></o:p></SPAN></INS></SPAN></SPAN></SPAN></SPAN></B></P>

<P class=MsoNormal 

style="TEXT-ALIGN: justify; mso-list: none; mso-list-ins: pdowad 20021203T1137"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" datetime="2002-12-03T11:37"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1137"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" 

datetime="2002-12-03T11:38">Not applicable.<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1138"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" datetime="2002-12-03T11:38"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1138"><B><SPAN 

style="FONT-SIZE: 10pt"><SPAN style="mso-prop-change: pdowad 20021203T1141"><INS 

cite="mailto:pdowad" datetime="2002-12-03T11:40"><SPAN 

style="mso-prop-change: pdowad 20021203T1141">D.<SPAN 

style="mso-tab-count: 1">    </SPAN></SPAN></INS><SPAN 

style="mso-prop-change: pdowad 20021203T1141"><INS cite="mailto:pdowad" 

datetime="2002-12-03T11:38"><SPAN 

style="mso-prop-change: pdowad 20021203T1141">Reasons for the offer and use of 

proceeds.<SPAN 

style="mso-prop-change: pdowad 20021203T1141"><o:p></o:p></SPAN></SPAN></INS></SPAN></SPAN></SPAN></B></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1138"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" datetime="2002-12-03T11:38"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1138"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" 

datetime="2002-12-03T11:38">Not applicable.<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1138"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" datetime="2002-12-03T11:38"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1138"><B><SPAN 

style="FONT-SIZE: 10pt"><SPAN style="mso-prop-change: pdowad 20021203T1141"><INS 

cite="mailto:pdowad" datetime="2002-12-03T11:40"><SPAN 

style="mso-prop-change: pdowad 20021203T1141">E.<SPAN 

style="mso-tab-count: 1">    </SPAN></SPAN></INS><SPAN 

style="mso-prop-change: pdowad 20021203T1141"><INS cite="mailto:pdowad" 

datetime="2002-12-03T11:38"><SPAN 

style="mso-prop-change: pdowad 20021203T1141">Risk factors<SPAN 

style="mso-prop-change: pdowad 20021203T1141"><o:p></o:p></SPAN></SPAN></INS></SPAN></SPAN></SPAN></B></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1139"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" datetime="2002-12-03T11:39"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1228"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" 

datetime="2002-12-03T11:39"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T12:28">[S – THIS WHOLE SECTION IS STILL 

MISSING]</DEL></SPAN></INS><INS cite="mailto:srreid" 

datetime="2002-12-03T12:28">Investors should carefully consider the risks and 

uncertainties described below before making an investment decision. If any of 

the following risks actually occur, our business, financial condition or 

operating results could be materially harmed. This could cause the trading price 

of our common shares to decline, and you may lose all or part of your 

investment.<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1228"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" datetime="2002-12-03T12:28"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1228"><A 

name=_Toc500203069></A><A name=_Toc500288338><SPAN 

style="mso-bookmark: _Toc500203069"><I><SPAN style="FONT-SIZE: 10pt"><INS 

cite="mailto:srreid" datetime="2002-12-03T12:28">Risks Associated With Our 

Financial Results</INS></SPAN></I></SPAN></A><I><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T12:28">:<o:p></o:p></INS></SPAN></I></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1228"><I><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" datetime="2002-12-03T12:28"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></I></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1228"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T12:28">Our consolidated financial statements have been 

prepared on the going concern basis, which presumes the realization of assets 

and the settlement of liabilities in the normal course of operations.<SPAN 

style="mso-spacerun: yes">  </SPAN>The application of the going concern 

basis is dependent up the Company achieving profitable operations to generate 

sufficient cash flows to fund continued operations, or, in the absence of 

adequate cash flows from operations, obtaining additional financing. 

<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1228"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" datetime="2002-12-03T12:28"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1228"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T12:28">The Company has reported losses and negative cash 

flows from operations in the last three years.<SPAN 

style="mso-spacerun: yes">  </SPAN>Management has commenced activities to 

</INS><INS cite="mailto:srreid" datetime="2002-12-03T12:31">obtain additional 

</INS><INS cite="mailto:srreid" datetime="2002-12-03T12:28">financing for its 

operations</INS><INS cite="mailto:srreid" datetime="2002-12-03T12:32">, however, 

such financing is not assured</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T12:28">.<SPAN style="mso-spacerun: yes">  

</SPAN></INS><INS cite="mailto:srreid" 

datetime="2002-12-03T12:32"><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1232"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" datetime="2002-12-03T12:28"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-ALIGN: justify; mso-list: none; mso-list-ins: srreid 20021203T1228"><A 

name=_Toc500203070></A><A name=_Toc500288339><SPAN 

style="mso-bookmark: _Toc500203070"><I><SPAN style="FONT-SIZE: 10pt"><INS 

cite="mailto:srreid" datetime="2002-12-03T12:28">Risks Associated With Our 

Business And Operations</INS></SPAN></I></SPAN></A><I><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T12:28"><o:p></o:p></INS></SPAN></I></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1228"><B 

style="mso-bidi-font-weight: normal"><SPAN 

style="FONT-SIZE: 10pt; mso-bidi-font-style: italic"><INS cite="mailto:srreid" 

datetime="2002-12-03T12:28"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></B></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1228"><B 

style="mso-bidi-font-weight: normal"><SPAN 

style="FONT-SIZE: 10pt; mso-bidi-font-style: italic"><INS cite="mailto:srreid" 

datetime="2002-12-03T12:28">We cannot be sure we will be able to locate proven 

and probable reserves from our existing properties or future 

properties</INS><INS cite="mailto:srreid" datetime="2002-12-03T12:34"> nor can 

we determine if, once located, it will be economically feasible to recovery the 

minerals</INS><INS cite="mailto:srreid" datetime="2002-12-03T12:28">. 

</INS></SPAN></B><SPAN style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T12:35">Proven and probable </INS><INS cite="mailto:srreid" 

datetime="2002-12-03T12:38">reserves are difficult to determine w</INS><INS 

cite="mailto:srreid" datetime="2002-12-03T12:35">ithout further exploration of 

our prope</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T12:37">rties</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T12:38">. This exploration is subject to obtaining 

sufficient financing to carry out </INS><INS cite="mailto:srreid" 

datetime="2002-12-03T12:39">the exploration program, which financing is not 

assured.<SPAN style="mso-spacerun: yes">  </SPAN>Without, sufficient 

financing, additional exploration activities cannot commence.<SPAN 

style="mso-spacerun: yes">  </SPAN>Upon determination of proven and 

probable </INS><INS cite="mailto:srreid" 

datetime="2002-12-03T12:40">reserves</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T12:39">,</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T12:40"> there is risk such reserves may not be 

significantly large enough or </INS><INS cite="mailto:srreid" 

datetime="2002-12-03T12:41">easily </INS><INS cite="mailto:srreid" 

datetime="2002-12-03T12:40">accessible </INS><INS cite="mailto:srreid" 

datetime="2002-12-03T12:41">to justify the economic cost of recovery of the 

reserves.</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T12:28"><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-ALIGN: justify; mso-list: none; mso-list-ins: srreid 20021203T1228"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" datetime="2002-12-03T12:28"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1228"><B 

style="mso-bidi-font-weight: normal"><SPAN 

style="FONT-SIZE: 10pt; mso-bidi-font-style: italic"><INS cite="mailto:srreid" 

datetime="2002-12-03T12:43">Title to mineral resources in certain jurisdictions 

</INS><INS cite="mailto:srreid" datetime="2002-12-03T12:44">may be</INS><INS 

cite="mailto:srreid" datetime="2002-12-03T12:43"> difficult to</INS><INS 

cite="mailto:srreid" datetime="2002-12-03T12:44"> </INS><INS 

cite="mailto:srreid" datetime="2002-12-03T13:49">assert</INS><INS 

cite="mailto:srreid" datetime="2002-12-03T12:44">. </INS><INS 

cite="mailto:srreid" datetime="2002-12-03T12:43"><SPAN 

style="mso-spacerun: yes">  </SPAN></INS><INS cite="mailto:srreid" 

datetime="2002-12-03T12:28"><SPAN 

style="mso-spacerun: yes"> </SPAN></INS></SPAN></B><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T12:44">The Company exercises </INS><INS 

cite="mailto:srreid" datetime="2002-12-03T12:28">significant due d</INS><INS 

cite="mailto:srreid" datetime="2002-12-03T12:45">i</INS><INS 

cite="mailto:srreid" datetime="2002-12-03T12:28">ligence in</INS><INS 

cite="mailto:srreid" datetime="2002-12-03T12:45"> researching, assembling and 

verifying claims to mineral exploration titles.<SPAN 

style="mso-spacerun: yes">  </SPAN>The company operates in various foreign 

jurisdictions in which title cannot </INS><INS cite="mailto:srreid" 

datetime="2002-12-03T12:46">always be assured.</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T12:28"><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1228"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" datetime="2002-12-03T12:28"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1228"><B 

style="mso-bidi-font-weight: normal"><SPAN 

style="FONT-SIZE: 10pt; mso-bidi-font-style: italic"><INS cite="mailto:srreid" 

datetime="2002-12-03T12:28">Since we </INS><INS cite="mailto:srreid" 

datetime="2002-12-03T12:47">operate in several foreign jurisdictions</INS><INS 

cite="mailto:srreid" datetime="2002-12-03T12:28">, we face financial risks 

associated with currency fluctuations and other risks relating to our 

international operations which may adversely impact our business and results of 

operations. </INS></SPAN></B><SPAN 

style="FONT-SIZE: 10pt; mso-bidi-font-weight: bold; mso-bidi-font-style: italic"><INS 

cite="mailto:srreid" datetime="2002-12-03T12:28">While we expect our 

international revenues and expenses to be denominated predominantly in US 

dollars, a portion of our international revenues and expenses may be denominated 

in </INS><INS cite="mailto:srreid" datetime="2002-12-03T12:48">other </INS><INS 

cite="mailto:srreid" datetime="2002-12-03T12:28">foreign currencies in the 

future. Accordingly, we could experience the risks of fluctuating currencies and 

could choose to engage in currency hedging activities, which may be unsuccessful 

and expensive.<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1228"><A 

name=_Toc458487911></A><A name=_Toc458566736><SPAN 

style="mso-bookmark: _Toc458487911"><SPAN style="FONT-SIZE: 10pt"><INS 

cite="mailto:srreid" 

datetime="2002-12-03T12:28"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></SPAN></A></P><SPAN 

style="mso-bookmark: _Toc458487911"></SPAN><SPAN 

style="mso-bookmark: _Toc458566736"></SPAN>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1228"><A 

name=_Toc500203071></A><A name=_Toc500288340><SPAN 

style="mso-bookmark: _Toc500203071"><I><SPAN style="FONT-SIZE: 10pt"><INS 

cite="mailto:srreid" datetime="2002-12-03T12:28">Risks Which May Affect The 

Value Of </INS><INS cite="mailto:srreid" 

datetime="2002-12-03T12:49">Calais</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T12:28"> Shares</INS></SPAN></I></SPAN></A><I><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" datetime="2002-12-03T12:28"> 

<o:p></o:p></INS></SPAN></I></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1228"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" datetime="2002-12-03T12:28"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoBodyText 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1230"><B 

style="mso-bidi-font-weight: normal"><SPAN 

style="FONT-SIZE: 10pt; mso-bidi-font-style: italic"><INS cite="mailto:srreid" 

datetime="2002-12-03T12:28">The exercise of our existing outstanding warrants 

and options and the number of shares available for future issuance may 

substantially dilute the value of our common shares. </INS></SPAN></B><SPAN 

style="FONT-SIZE: 10pt; mso-fareast-font-family: 'MS Mincho'"><INS 

cite="mailto:srreid" datetime="2002-12-03T12:28">We have </INS><INS 

cite="mailto:srreid" datetime="2002-12-03T12:49">10</INS><INS 

cite="mailto:srreid" datetime="2002-12-03T12:28">0,000,000 shares of Common 

Stock authorized, of which </INS><INS cite="mailto:srreid" 

datetime="2002-12-03T12:50">10,676,718</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T12:28"> were outstanding at </INS><INS cite="mailto:srreid" 

datetime="2002-12-03T12:50">May 31, 2002</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T12:28"> and an additional </INS><INS cite="mailto:srreid" 

datetime="2002-12-03T12:51">1,574,053</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T12:28"> shares have been reserved for issuance upon the 

exercise of outstanding options or warrants as of such date. Although our Board 

of Directors has no present intention to do so, it has the authority, without 

action by the shareholders, to issue authorized and unissued shares of Common 

Stock. Any series of Preferred Stock, if and when established and issued, could 

also have rights superior to shares of our Common Stock, particularly in regard 

to voting,</INS></SPAN><SPAN style="mso-fareast-font-family: 'MS Mincho'"><INS 

cite="mailto:srreid" datetime="2002-12-03T12:30"> </INS></SPAN><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T12:30">the payment of dividends and upon liquidation of 

</INS><INS cite="mailto:srreid" datetime="2002-12-03T12:52">Calais</INS><INS 

cite="mailto:srreid" datetime="2002-12-03T12:30">.<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: Unknown 19000000T0000"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" datetime="2002-12-03T11:37"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:50"><![if !supportEmptyParas]> <![endif]></DEL></SPAN><SPAN 

class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:50"><o:p></o:p></DEL></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt">ITEM 

4.<SPAN style="mso-spacerun: yes">  </SPAN>Information on the 

Company<o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt">A. History 

and Development of the Company<o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Calais Resources Inc. (the "Registrant" or the 

"Company") is engaged in the exploration and, when warranted, development of 

natural resource properties.<SPAN style="mso-spacerun: yes">  </SPAN>The 

Company’s primary properties are the Manhattan Properties in Nevada, the 

Hendricks Claims in Colorado and the north Veraguas District mineral concessions 

in the Republic of Panama. <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company's head office is located at 9482 Williams St., Chilliwack, British 

Columbia, Canada V2P 5G1; the contact person is Art Daher, Secretary and 

Director; the telephone number is (604) 795-3383 and the facsimile number is 

(604) 792-3676.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company's common shares trade on the OTCBB under trading symbol "CAAUF".<SPAN 

style="mso-spacerun: yes">  </SPAN>The Company's fiscal year ends May 

31st.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company's consolidated financial statements are stated in Canadian Dollars 

(CDN$) and are prepared in accordance with Canadian Generally Accepted 

Accounting Principles (GAAP); nevertheless, the consolidated financial 

statements conform in all material respects with US GAAP, except as disclosed in 

footnotes to the financial statements.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Herein, all references to "$" and "CDN$" refer to 

Canadian Dollars and all references to "US$" refer to United States Dollars. 

Unless otherwise specified, all dollar amounts are expressed in Canadian Dollars 

(CDN$). All references to common shares refer to the Company's Common Shares 

without Par Value unless otherwise indicated.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

information contained in this Annual Report is current as at October 31,2002, 

except where a different date is specified.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company has no mineral properties, which are producing revenue.<SPAN 

style="mso-spacerun: yes">  </SPAN>The Company’s operations consist of 

searching for commercially viable reserves.<SPAN 

style="mso-spacerun: yes">  </SPAN>The Company has not developed any 

mineral properties to date. The Colorado properties do have proven and probable 

reserves.<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal><U><SPAN style="FONT-SIZE: 10pt">Incorporation/Name 

Change<o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company was incorporated in British Columbia, Canada, on December 30, 1986 under 

the name “Millennium Resources Inc.”.<SPAN style="mso-spacerun: yes">  

</SPAN>Effective March 19, 1992, the name was changed to “Calais Resources 

Inc.”.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Stock Consolidation/Split<o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Effective March 19 1992, the Company consolidated its 

common shares on a one-for-five basis.<SPAN style="mso-spacerun: yes">  

</SPAN>All references to the number of shares or per share data refer to 

post-consolidation figures unless otherwise indicated.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Fiscal 2002 Natural Resource Property 

Acquisition/Exploration <o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">During Fiscal 2002, the Company continued to work on 

raising capital. A detailed exploration program for each property has been 

professionally prepared. The second of four annual payments was made for the 

additional ownership in the Nevada Manhattan Agreement of Fiscal 2000. The 

Company plans to commence surface mapping and sampling programs, followed by a 

surface diamond drill program for its Nevada Manhattan District property in 

January 2003, subject to raising additional capital. The Company also has plans 

to commence a surface diamond drill program at its Consolidated Caribou Mines 

project in April 2003.<SPAN style="mso-spacerun: yes">  </SPAN>A modest 

surface mapping and sampling program is planned for the Panama project, followed 

by a diamond drill program.<SPAN style="mso-spacerun: yes">  </SPAN>All of 

these projects will be influenced by the success of financing 

efforts.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Fiscal 2001 Natural Resource Property 

Acquisition/Exploration<o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">During Fiscal 2001, the Company continued to work on 

raising capital for exploration purposes. A detailed exploration program for 

each property has been professionally prepared. The Company had planned to 

commence surface mapping and sampling programs, followed by a surface diamond 

drill program for its Nevada Manhattan District property in February 2002. This 

did not proceed due to lack of capital. The Company had planned to commence a 

surface diamond drill program at its Consolidated Caribou Mines project in June 

2002. This also did not proceed due to lack of capital. A modest surface mapping 

and sampling program was planned for the Panama project, followed by a diamond 

drill program. All of these projects were influenced by the lack of success in 

financing efforts.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Fiscal 2002 Financing<o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">During 2002, the Company secured a US $1,200,000 loan 

from Peak National Bank which was used to pay shareholder loans, trade accounts 

payable, and other long term debts as well as finance 2002 

operations.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Fiscal 2001 Financing<o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company relied on personal loans from certain directors and their family members 

to help fund monthly overhead. The Company secured a US $200,000 loan from Peak 

National Bank of Nederland, Colorado on November 7, 2000. The Company also sold 

used RC drill equipment that was determined to be of no use for future 

exploration programs.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">See 

Item 4D. “Property, Plant and Equipment” regarding significant events in the 

development of the Company’s business and capital expenditures over the last 

three years.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 10pt"><SPAN 

style="mso-prop-change: pdowad 20021203T1143"><SPAN 

style="mso-prop-change: pdowad 20021203T1143">B. Business Overview<SPAN 

style="mso-prop-change: pdowad 20021203T1143"><o:p></o:p></SPAN></SPAN></SPAN></SPAN></B></P>

<P class=MsoNormal><B style="mso-bidi-font-weight: normal"><U><SPAN 

style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal><B style="mso-bidi-font-weight: normal"><U><SPAN 

style="FONT-SIZE: 10pt">2001/2002 Exploration & Development 

Programs<o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company is in the business of researching, acquiring, exploring and, when 

warranted, developing mineral properties. <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

corporate philosophy has been to seek out and acquire potential gold mineral 

properties in North America.<SPAN style="mso-spacerun: yes">  </SPAN>The 

objective being to acquire an entire district that has 1 million ounces plus 

commercial potential and is historically beyond the grass-root level in its 

development.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company then endeavors to acquire the rights to the prospective and surrounding 

claims.<SPAN style="mso-spacerun: yes">  </SPAN>It then proceeds through a 

due diligence period to the commencement of a full scientific analysis of the 

district, followed by an exploration and development program.<SPAN 

style="mso-spacerun: yes">  </SPAN>Suitable results at each step in the 

process are a prerequisite to further development.<SPAN 

style="mso-spacerun: yes">  </SPAN>Upon suitable development of a mineral 

deposit and reserve, the Company will then make the decision to either proceed 

with the mining thereof, to joint venture with a major mining company, or to 

sell outright.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company now has three projects at various stages of 

exploration.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><I 

style="mso-bidi-font-style: normal"><SPAN style="FONT-SIZE: 10pt">Caribou 

Consolidated District, Colorado:<o:p></o:p></SPAN></I></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Caribou Consolidated District, located in Colorado, is a 3.5 square mile 

consolidated precious metals district. Historic production in the district dates 

back to 1869. Production between 1977 and 1985 totaled $5 million through small 

scale exploration development work and old mine dump reclamation. The district 

consists of three modern surface plants, roads, power lines and is fully 

permitted. 140,000 feet of diamond drilling has been completed to-date with a 

modern core library. All data is in the Vulcan/Maptek program and has an 

extensive database. The mine has high grade vein widths from 3 feet to 50 feet, 

going to significant depths and significant strike lengths. The Caribou district 

has recorded production dating back to 1869 of 300,000 oz. Gold and 20,000,000 

silver. The next drill program may expand its resources to + 1 million ounces of 

gold and 30/40 million ounces of silver. It may also potentially reveal several 

new undeveloped targets.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><I 

style="mso-bidi-font-style: normal"><SPAN style="FONT-SIZE: 10pt">Nevada 

Manhattan District/Nye County, Nevada:<o:p></o:p></SPAN></I></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Nevada Manhattan District is a 4 square mile district. Its historic production 

dates back to 1860. Several high-grade gold mines consisting of the White Caps, 

Bath, Earl, and Union Consolidated mines are located within this district. 

Newmont is a very attractive mine, situated immediately to the South of the 

Manhattan and Midway projects. The Barrick and Echo Bay mines, including the 

Round Mountain site, are large scale production operations directly to the North 

of the Manhattan district. The past ten years have been spent consolidating the 

district. For the past three years, much energy has been spent developing a 

geologic model for a core drilling program that will potentially hit a large 

buried intrusive gold ore body. It is a gold feeder zone for the district. An 

extensive database is ready for review. Upon receipt of adequate funding, a 

drill program will be ready to commence with Q-West Drilling within a two month 

period.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><I 

style="mso-bidi-font-style: normal"><SPAN style="FONT-SIZE: 10pt">Faja de Oro 

District/Republic of Panama:<o:p></o:p></SPAN></I></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Faja de Oro district is a 61,000 acre mineral concession. Its historic gold 

production dates back to 1200 A D. No one has ever completed a modern day, 

professionally run exploration program to find the source of placer gold that is 

found throughout the extensive river system and ocean placers. There has been 

300,000 ounces of placer gold produced from crude techniques. Calais has 

generated a geologic database that will be used for exploration programs that 

have an excellent chance in locating high-grade gold veins and possible 

stockwork/porphyry type gold deposits. This property is located between the 

Teek/Adrian concessions to the east and the Cerro Colorado discoveries to the 

west. The Faja de Oro is a major east, west structural 

trend.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Sources of Funds</SPAN><B 

style="mso-bidi-font-weight: normal"><SPAN 

style="COLOR: red"><o:p></o:p></SPAN></B></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">At 10/31/02 the Company had stock options 

outstanding entitling the holders to acquire 965,250 shares at an exercise price 

of Cdn $0.45 per share and 60,000 shares at an exercise price of Cdn $0.77. The 

Company plans to continue in its efforts to secure financing through private 

placements and stock options.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt; mso-bidi-font-weight: bold">The Peak National bank loan 

is being renewed on a monthly basis by paying interest and a monthly renewal 

fee. Peak National Bank has agreed to renew the loan for one year if the Company 

pays ten percent of the principle ($US 120,000) and escrows one year of interest 

at 10.5% per annum. Two of the Directors of the Company are providing working 

capital until such time a private placement is completed to raise approximately 

$US 250,000 in funds required to meet the terms of Peak National 

Bank.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt; mso-bidi-font-weight: bold"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN 

style="FONT-SIZE: 10pt">Regulations and Government 

Rules<o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Normal practices to reduce noise, changes to air quality 

and water quality are expected to be sufficient.<SPAN 

style="mso-spacerun: yes">  </SPAN>The Company has obtained all necessary 

permits in the United States and Canada for exploration/development work 

performed to date and anticipates no material problems in obtaining the 

necessary permits to proceed with development.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company is not aware of any proposed or existing Canadian or United States 

regulations pertaining to environmental matters which might have a 

material impact on the Company's future financial performance<B 

style="mso-bidi-font-weight: normal"><U><o:p></o:p></U></B></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN 

style="FONT-SIZE: 10pt">Competition<o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">There is general competition from other mineral 

exploration/development companies with operations similar to that of the 

Company's.<SPAN style="mso-spacerun: yes">  </SPAN>Many of the companies 

with which the Company competes have operations and financial strength many<SPAN 

style="mso-spacerun: yes">                         

</SPAN>times that of the Company.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Nevertheless, the market for the Company's possible 

future production of minerals tends to be commodity oriented, rather than 

company oriented.<SPAN style="mso-spacerun: yes">  </SPAN>Accordingly, the 

Company expects to compete by keeping its production costs low through judicious 

selection of which portions of the property to develop and by keeping 

overhead charges within industry standards.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B><SPAN 

style="FONT-SIZE: 10pt"><SPAN 

style="mso-prop-change: pdowad 20021203T1144"><SPAN 

style="mso-prop-change: pdowad 20021203T1144">C. Organizational Structure<SPAN 

style="mso-prop-change: pdowad 20021203T1144"><o:p></o:p></SPAN></SPAN></SPAN></SPAN></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B><U><SPAN 

style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company is the parent company in the corporate group and owns various wholly 

owned subsidiaries either directly or indirectly.<SPAN 

style="mso-spacerun: yes">  </SPAN>All material inter-company transactions 

and balances have been eliminated in the consolidated financial statements 

included in this report.<SPAN style="mso-spacerun: yes">   </SPAN>The 

three active subsidiaries of the Company are Calais Resources Nevada Inc. and 

Calais Resources Colorado Inc., both incorporated in the State of Nevada, and 

Calais Resources International Inc., incorporated in 

Bermuda.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal><B><SPAN style="FONT-SIZE: 10pt"><SPAN 

style="mso-prop-change: pdowad 20021203T1144"><SPAN 

style="mso-prop-change: pdowad 20021203T1144">D. Property, plant and 

Equipment<SPAN 

style="mso-prop-change: pdowad 20021203T1144"><o:p></o:p></SPAN></SPAN></SPAN></SPAN></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt">Executive 

Offices<o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company's executive offices are located in premises of approximately 900 square 

feet at 9482 Williams St., Chilliwack V2P 5G1.<SPAN 

style="mso-spacerun: yes">  </SPAN>The Company began occupying this 

facility in March 1998 and considers this facility to be adequate for its 

current needs.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt">Manhattan 

Project<o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt">Nevada, 

USA; Gold Exploration<o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Acquisition Details<o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">In 

December of 1994, the Company acquired a 51% interest in certain patented and 

unpatented claims located in Nevada from a company controlled by directors for 

$1,176,000 US plus a 5% net smelter royalty. The Company can also acquire a 100% 

interest in a further 89 claims in this property under this 

agreement.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN 

style="mso-spacerun: yes"> </SPAN><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company entered into an agreement and settlement dated September 7, 2000 with 

Nevada Manhattan Mining Incorporated to settle and purchase The Manhattan Mining 

Incorporated’s 24.5% interest in the property. The Company agreed to make four 

annual payments of US $75,000 each for a total of US $300,000. During the term 

of the agreement the Company has agreed to pay Nevada Manhattan Mining 

Incorporated a 2% net smelter return royalty. The Company can purchase the 

entire Nevada Manhattan Mining Incorporated interest and royalty at anytime over 

a thirty year period for US $7.5 million, which would include production 

royalties.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN 

style="mso-spacerun: yes">        

</SPAN><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">By 

staking, the Company also holds a 100% interest in 42 unpatented claims in the 

Manhattan Mining district.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Property 

Description/Location/Access/Climate<o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

project is located around the old mining town of Manhattan, Nevada, USA.<SPAN 

style="mso-spacerun: yes">  </SPAN>Manhattan is 15 miles southeast of Round 

Mountain, Nevada, located on Highway 376, 20 miles from Carvers, Nevada, and 43 

miles from Tonopah, Nevada.<SPAN style="mso-spacerun: yes">  </SPAN>The 

project covers approximately 4600 acres of patented and unpatented Bureau of 

Land Management (“BLM”) and US Forest Service (“USFS”) 

land.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Manhattan Project is divided into two main areas: i) 1800 acres held by the 

Company (75.5%) and Argus Resources (24.5%) in 31 patented claims and 26 

unpatented claims; and land held exclusively by the 

Company.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Previous Work<o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

historic mining in the area extends from 1866 to present with the major activity 

taking place in the late 1860’s, between 1906 and 1921, and from the 1960’s 

until present.<SPAN style="mso-spacerun: yes">  </SPAN>Placer and lode 

mining took place principally in the Reliance, White Caps, Union Amalgamated, 

Manhattan Consolidated, Earle, Big Four, and April Fool mines.<SPAN 

style="mso-spacerun: yes">  </SPAN>There has been significant production in 

recent years from adjoining property.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Past exploratory drilling focused on delineating an 

economic resource in the Cambrian Age limestone rocks around the White Caps and 

Manhattan Consolidated Mines.<SPAN style="mso-spacerun: yes">  

</SPAN>Several exploration companies drilled mainly RC holes to test theories of 

mineralization in this rock type.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt">Hendricks 

Claims<o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt">Colorado, 

USA; Gold/Silver Exploration/Development<o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Acquisition Details<o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Included in the Colorado properties is a 100% working 

interest in the Consolidated Caribou-Cross-Comstock-Panadora district mine area 

which the Company acquired in 1997 for US $4,000,000 in stock, cash and final 

property payments. After acquisition of 100% working interest the<SPAN 

style="mso-spacerun: yes">  </SPAN>seller retains a 2% net smelter royalty 

interest in the property. The Company has the right to buy back half of the net 

smelter royalty (1%) for US $750,000. The seller has not sold any of the issued 

shares for this acquisition through May 31, 2002. The company continues to have 

100% ownership of 10 Patented claims that are continuations of the historic 

Boulder County and Cardinal vein systems. The Colorado properties contain a 

well<SPAN class=msoDel><DEL cite="mailto:srreid" datetime="2002-12-03T14:40"> 

</DEL></SPAN>documented mineral resource of 424,500 ounces of gold and 

11,725,000 ounces of silver.<U><o:p></o:p></U></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Property 

Description/Location/Access/Climate<o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

property includes the Cross Gold Mine, the Potosi Mine and several other 

district properties.<SPAN style="mso-spacerun: yes">  </SPAN>The property 

is on the east flank of the Front Range Mountains, approximately 23 miles west 

of Boulder Colorado.<SPAN style="mso-spacerun: yes">  </SPAN>It is reached 

by a five-mile all-weather graded road from the small town of Nederland, which 

connects with Boulder via paved State Highway 119.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

project area encompasses claims with additional Federal claims on public lands 

north and west of the Cross Mine.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Gold and silver mineralization occurs in a broad, 

west-northwest trending zone that includes the Cross Mine and extends about 

2,500 feet on the property.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Three-phase power, sufficient to service a 500 tpd (tons 

per day) mine and mill complex, is installed and active on the property.<SPAN 

style="mso-spacerun: yes">  </SPAN>An 18-gauge rail haulage system and 

equipment, hoisting equipment, compressed air, water and ventilation services 

are installed and maintained in good working condition in the Cross Mine.<SPAN 

style="mso-spacerun: yes">  </SPAN>Mine water treatment facilities are 

currently operating in compliance and were upgraded in recent 

years.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Cross Mine is fully permitted through the Colorado State Health Department, the 

Colorado Division of Mines, Mine Safety and Health Administration, and the 

Colorado Mined Land Reclamation Division.<SPAN style="mso-spacerun: yes">  

</SPAN>Permitting includes a water discharge permit.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Previous Work<o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Silver ore was discovered in the region in 1869.<SPAN 

style="mso-spacerun: yes">  </SPAN>A wagon road was completed in 1870 and 

mining developed rapidly over the next few years with the highest production 

coming from the Caribou and No-Name veins.<SPAN style="mso-spacerun: yes">  

</SPAN>The Cross ore deposit was discovered in 1873 and had minor intermittent 

production until 1939.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Hendricks Mining Company began the task of reopening the 

mine in 1974.<SPAN style="mso-spacerun: yes">  </SPAN>Between 1977 and 

1985, 27,000 short tons of ore was produced from four mine levels.<SPAN 

style="mso-spacerun: yes">  </SPAN>Very little geological data, drilling or 

assay information was available to guide this work.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Hendricks Mining Company extensively explored the property by drifting, drilling 

from both the surface and underground and by mapping and sampling.<SPAN 

style="mso-spacerun: yes">  </SPAN>The mine workings in the Cross Mine have 

been significantly expanded.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt">Panama 

Project,<o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt">Republic 

of Panama; Gold Exploration<o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Acquisition Details<o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Pursuant to an agreement dated October 6, 2000, the 

Company was granted the option to purchase a 40,000 acres mineral concession in 

a historic gold producing district of Panama with Panama Mining of Golden Cycle 

of Panama Incorporated.<SPAN style="mso-spacerun: yes">  </SPAN>The 

Company’s agreement is for the hard rock mineral rights.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Previous Work<o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Gold has been produced by primitive methods from streams 

and high-grade veins in the region since the time of Columbus.<SPAN 

style="mso-spacerun: yes">  </SPAN>There has been no modern day systematic 

gold exploration to evaluate the resource potential of the veins on the 

concession.<o:p></o:p></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1448"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><INS 

cite="mailto:srreid" 

datetime="2002-12-03T14:48"><U><![if !supportEmptyParas]> <![endif]><o:p></o:p></U></INS></SPAN></U></B></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1448"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T14:48">The Company spent exploration funds as 

follows</INS><INS cite="mailto:srreid" datetime="2002-12-03T14:49"> in each of 

the last three years</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T14:48">:</INS></SPAN><SPAN 

style="FONT-SIZE: 6.5pt; mso-bidi-font-size: 10.0pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T14:48"><SPAN style="mso-spacerun: yes">   

</SPAN><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1448"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T14:48"><SPAN 

style="mso-spacerun: yes">     </SPAN><SPAN 

style="mso-spacerun: yes">         </SPAN><o:p></o:p></INS></SPAN></P>

<TABLE style="BORDER-COLLAPSE: collapse; mso-padding-alt: 0in 5.4pt 0in 5.4pt" 

cellSpacing=0 cellPadding=0 border=0>

<TBODY>

<TR style="mso-table-inserted: srreid 20021203T1448">

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.7in; PADDING-TOP: 0in" 

vAlign=top width=163>

<P class=MsoHeader 

style="TEXT-ALIGN: right; tab-stops: .5in; mso-list: none; mso-list-ins: srreid 20021203T1448" 

align=right><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T14:48"><o:p></o:p></INS></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 81pt; PADDING-TOP: 0in" 

vAlign=top width=108>

<P class=MsoNormal 

style="TEXT-ALIGN: center; mso-list: none; mso-list-ins: srreid 20021203T1448" 

align=center><U><SPAN style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T14:48"><U>Fiscal<SPAN 

style="mso-spacerun: yes">                           

</SPAN>2002<o:p></o:p></U></INS></SPAN></U></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 81pt; PADDING-TOP: 0in" 

vAlign=top width=108>

<P class=MsoNormal 

style="TEXT-ALIGN: center; mso-list: none; mso-list-ins: srreid 20021203T1448" 

align=center><U><SPAN style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T14:48"><U>Fiscal <o:p></o:p></U></INS></SPAN></U></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: center; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1448" 

align=center><U><SPAN style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T14:48"><U>200</U></INS><INS cite="mailto:srreid" 

datetime="2002-12-03T14:49"><U>1</U></INS><INS cite="mailto:srreid" 

datetime="2002-12-03T14:48"><U><o:p></o:p></U></INS></SPAN></U></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 81pt; PADDING-TOP: 0in" 

vAlign=top width=108>

<P class=MsoNormal 

style="TEXT-ALIGN: center; mso-list: none; mso-list-ins: srreid 20021203T1448" 

align=center><U><SPAN style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T14:50"><U>Fiscal<o:p></o:p></U></INS></SPAN></U></P>

<P class=MsoNormal 

style="TEXT-ALIGN: center; mso-list: none; mso-list-ins: srreid 20021203T1450" 

align=center><U><SPAN style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T14:50"><U>2000<o:p></o:p></U></INS></SPAN></U></P></TD></TR>

<TR style="mso-table-inserted: srreid 20021203T1448">

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.7in; PADDING-TOP: 0in" 

vAlign=top width=163>

<P class=MsoNormal 

style="TEXT-ALIGN: justify; mso-list: none; mso-list-ins: srreid 20021203T1448"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T14:48">Manhattan 

Property<o:p></o:p></INS></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 81pt; PADDING-TOP: 0in" 

vAlign=top width=108>

<P class=MsoNormal 

style="TEXT-ALIGN: right; mso-list: none; mso-list-ins: srreid 20021203T1448" 

align=right><SPAN style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T14:48">$</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T14:49">292,886</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T14:48"><o:p></o:p></INS></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 81pt; PADDING-TOP: 0in" 

vAlign=top width=108>

<P class=MsoNormal 

style="TEXT-ALIGN: right; mso-list: none; mso-list-ins: srreid 20021203T1448" 

align=right><SPAN style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T14:48">$</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T14:49">176,175</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T14:48"><o:p></o:p></INS></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 81pt; PADDING-TOP: 0in" 

vAlign=top width=108>

<P class=MsoNormal 

style="TEXT-ALIGN: right; mso-list: none; mso-list-ins: srreid 20021203T1448" 

align=right><SPAN style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T14:52">$2,366</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T14:50"><o:p></o:p></INS></SPAN></P></TD></TR>

<TR style="mso-table-inserted: srreid 20021203T1448">

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.7in; PADDING-TOP: 0in" 

vAlign=top width=163>

<P class=MsoNormal 

style="TEXT-ALIGN: justify; mso-list: none; mso-list-ins: srreid 20021203T1448"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T14:48">Colorado 

Property<o:p></o:p></INS></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 81pt; PADDING-TOP: 0in" 

vAlign=top width=108>

<P class=MsoNormal 

style="TEXT-ALIGN: right; mso-list: none; mso-list-ins: srreid 20021203T1448" 

align=right><SPAN style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T14:48">$</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T14:49">120,601</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T14:48"><o:p></o:p></INS></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 81pt; PADDING-TOP: 0in" 

vAlign=top width=108>

<P class=MsoNormal 

style="TEXT-ALIGN: right; mso-list: none; mso-list-ins: srreid 20021203T1448" 

align=right><SPAN style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T14:48">$</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T14:50">190,566</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T14:48"><o:p></o:p></INS></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 81pt; PADDING-TOP: 0in" 

vAlign=top width=108>

<P class=MsoNormal 

style="TEXT-ALIGN: right; mso-list: none; mso-list-ins: srreid 20021203T1448" 

align=right><SPAN style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T14:53">$185,962</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T14:50"><o:p></o:p></INS></SPAN></P></TD></TR>

<TR style="mso-table-inserted: srreid 20021203T1448">

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.7in; PADDING-TOP: 0in" 

vAlign=top width=163>

<P class=MsoNormal 

style="TEXT-ALIGN: justify; mso-list: none; mso-list-ins: srreid 20021203T1448"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T14:48">Panama Property<o:p></o:p></INS></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 81pt; PADDING-TOP: 0in" 

vAlign=top width=108>

<P class=MsoNormal 

style="TEXT-ALIGN: right; mso-list: none; mso-list-ins: srreid 20021203T1448" 

align=right><SPAN style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T14:48">$</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T14:49">65,070</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T14:48"><o:p></o:p></INS></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 81pt; PADDING-TOP: 0in" 

vAlign=top width=108>

<P class=MsoNormal 

style="TEXT-ALIGN: right; mso-list: none; mso-list-ins: srreid 20021203T1448" 

align=right><SPAN style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T14:48">$</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T14:50">78,988</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T14:48"><o:p></o:p></INS></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 81pt; PADDING-TOP: 0in" 

vAlign=top width=108>

<P class=MsoNormal 

style="TEXT-ALIGN: right; mso-list: none; mso-list-ins: srreid 20021203T1448" 

align=right><SPAN style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T14:53">$ -</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T14:50"><o:p></o:p></INS></SPAN></P></TD></TR></TBODY></TABLE>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt">ITEM 

5.<SPAN style="mso-spacerun: yes">  </SPAN>OPERATING AND FINANCIAL REVIEW 

AND PROSPECTS<o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 10pt"><SPAN 

style="mso-prop-change: pdowad 20021203T1144"><SPAN 

style="mso-prop-change: pdowad 20021203T1144">A. Operating Results<SPAN 

style="mso-prop-change: pdowad 20021203T1144"><o:p></o:p></SPAN></SPAN></SPAN></SPAN></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">The Company is in the business 

of acquiring and exploring mineral properties with the aim of 

participating in the development of them to a stage where they can be 

exploited at a profit.<SPAN style="mso-spacerun: yes">  </SPAN>At that 

stage, the Company's operations would to some extent<INS cite="mailto:pdowad" 

datetime="2002-12-03T11:44"> </INS><SPAN class=msoDel><DEL cite="mailto:pdowad" 

datetime="2002-12-03T11:44"> </DEL></SPAN>be dependent on the world market 

prices of any mineral produced.   The Company does not have any<INS 

cite="mailto:pdowad" datetime="2002-12-03T11:44"> </INS><SPAN class=msoDel><DEL 

cite="mailto:pdowad" 

datetime="2002-12-03T11:44"> </DEL></SPAN>properties<INS 

cite="mailto:pdowad" datetime="2002-12-03T11:44"> </INS><SPAN class=msoDel><DEL 

cite="mailto:pdowad" datetime="2002-12-03T11:44"> </DEL></SPAN>with 

material production of minerals, and operations on its properties are 

exploratory searches for commercially producible deposits.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Nearly<INS cite="mailto:pdowad" 

datetime="2002-12-03T11:45"> </INS><SPAN class=msoDel><DEL cite="mailto:pdowad" 

datetime="2002-12-03T11:45"> </DEL></SPAN>all<INS cite="mailto:pdowad" 

datetime="2002-12-03T11:45"> </INS><SPAN class=msoDel><DEL cite="mailto:pdowad" 

datetime="2002-12-03T11:45"> </DEL></SPAN>of the Company's activities are 

directed<INS cite="mailto:pdowad" datetime="2002-12-03T11:45"> </INS><SPAN 

class=msoDel><DEL cite="mailto:pdowad" 

datetime="2002-12-03T11:45"> </DEL></SPAN>to exploration and development 

programs.<SPAN style="mso-spacerun: yes">  </SPAN>Yearly<INS 

cite="mailto:pdowad" datetime="2002-12-03T11:45"> </INS><SPAN class=msoDel><DEL 

cite="mailto:pdowad" datetime="2002-12-03T11:45"> </DEL></SPAN>variations 

in individual property expenditures generally reflect increases or decreases in 

specific exploration and development costs based on previous results and the 

Company's decisions regarding the allocation of exploration expenditures 

between projects.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><SPAN 

style="mso-spacerun: yes">                  

</SPAN><U>Geographic Segments<o:p></o:p></U></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<TABLE 

style="MARGIN-LEFT: 57.15pt; BORDER-COLLAPSE: collapse; mso-padding-alt: 0in 5.4pt 0in 5.4pt" 

cellSpacing=0 cellPadding=0 border=0>

<TBODY>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 90.15pt; PADDING-TOP: 0in" 

vAlign=top width=120>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 10pt">Net 

Loss/Year:<o:p></o:p></SPAN></B></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.25in; PADDING-TOP: 0in" 

vAlign=top width=120>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN 

style="FONT-SIZE: 10pt">2002</SPAN></U></B><B 

style="mso-bidi-font-weight: normal"><SPAN 

style="FONT-SIZE: 10pt"><o:p></o:p></SPAN></B></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 78.6pt; PADDING-TOP: 0in" 

vAlign=top width=105>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><B 

style="mso-bidi-font-weight: normal"><U><SPAN 

style="FONT-SIZE: 10pt">2001<o:p></o:p></SPAN></U></B></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.25in; PADDING-TOP: 0in" 

vAlign=top width=120>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><B 

style="mso-bidi-font-weight: normal"><U><SPAN 

style="FONT-SIZE: 10pt">2000<o:p></o:p></SPAN></U></B></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 90.15pt; PADDING-TOP: 0in" 

vAlign=top width=120>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Canada<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.25in; PADDING-TOP: 0in" 

vAlign=top width=120>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 10pt">($261,143)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 78.6pt; PADDING-TOP: 0in" 

vAlign=top width=105>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 10pt">($487,017)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.25in; PADDING-TOP: 0in" 

vAlign=top width=120>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 10pt">($11,730,509)<o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 90.15pt; PADDING-TOP: 0in" 

vAlign=top width=120>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">United States<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.25in; PADDING-TOP: 0in" 

vAlign=top width=120>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 10pt">($289,866)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 78.6pt; PADDING-TOP: 0in" 

vAlign=top width=105>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 10pt">($260,851)<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.25in; PADDING-TOP: 0in" 

vAlign=top width=120>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 10pt">($64,534)<o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 90.15pt; PADDING-TOP: 0in" 

vAlign=top width=120>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><SPAN 

style="FONT-SIZE: 10pt">TOTAL<o:p></o:p></SPAN></B></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.25in; PADDING-TOP: 0in" 

vAlign=top width=120>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><B 

style="mso-bidi-font-weight: normal"><SPAN 

style="FONT-SIZE: 10pt">($551,009)<o:p></o:p></SPAN></B></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 78.6pt; PADDING-TOP: 0in" 

vAlign=top width=105>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><B 

style="mso-bidi-font-weight: normal"><SPAN 

style="FONT-SIZE: 10pt">($747,868)<o:p></o:p></SPAN></B></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.25in; PADDING-TOP: 0in" 

vAlign=top width=120>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><B 

style="mso-bidi-font-weight: normal"><SPAN 

style="FONT-SIZE: 10pt">($11,795,043)<o:p></o:p></SPAN></B></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 348.75pt; PADDING-TOP: 0in" 

vAlign=top width=465 colSpan=4>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><SPAN 

style="FONT-SIZE: 10pt">Identifiable Assets at year 

end:<o:p></o:p></SPAN></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><![if !supportEmptyParas]><![endif]> <B 

style="mso-bidi-font-weight: normal"><SPAN 

style="FONT-SIZE: 10pt"><o:p></o:p></SPAN></B></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 90.15pt; PADDING-TOP: 0in" 

vAlign=top width=120>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><![if !supportEmptyParas]><![endif]> <B 

style="mso-bidi-font-weight: normal"><U><SPAN 

style="FONT-SIZE: 10pt"><o:p></o:p></SPAN></U></B></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.25in; PADDING-TOP: 0in" 

vAlign=top width=120>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><B 

style="mso-bidi-font-weight: normal"><U><SPAN 

style="FONT-SIZE: 10pt">2002<o:p></o:p></SPAN></U></B></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 78.6pt; PADDING-TOP: 0in" 

vAlign=top width=105>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><B 

style="mso-bidi-font-weight: normal"><U><SPAN 

style="FONT-SIZE: 10pt">2001<o:p></o:p></SPAN></U></B></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.25in; PADDING-TOP: 0in" 

vAlign=top width=120>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><B 

style="mso-bidi-font-weight: normal"><U><SPAN 

style="FONT-SIZE: 10pt">2000<o:p></o:p></SPAN></U></B></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 90.15pt; PADDING-TOP: 0in" 

vAlign=top width=120>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Canada<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.25in; PADDING-TOP: 0in" 

vAlign=top width=120>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 10pt">$291,993<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 78.6pt; PADDING-TOP: 0in" 

vAlign=top width=105>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 10pt">$295,978<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.25in; PADDING-TOP: 0in" 

vAlign=top width=120>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 10pt">$445,728<o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 90.15pt; PADDING-TOP: 0in" 

vAlign=top width=120>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">United States<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.25in; PADDING-TOP: 0in" 

vAlign=top width=120>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 10pt">$12,874,048<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 78.6pt; PADDING-TOP: 0in" 

vAlign=top width=105>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 10pt">$12,491,799<o:p></o:p></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.25in; PADDING-TOP: 0in" 

vAlign=top width=120>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 10pt">$12,353,217<o:p></o:p></SPAN></P></TD></TR>

<TR>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 90.15pt; PADDING-TOP: 0in" 

vAlign=top width=120>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><SPAN 

style="FONT-SIZE: 10pt">TOTAL<o:p></o:p></SPAN></B></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.25in; PADDING-TOP: 0in" 

vAlign=top width=120>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><B 

style="mso-bidi-font-weight: normal"><SPAN 

style="FONT-SIZE: 10pt">$13,166,041<o:p></o:p></SPAN></B></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 78.6pt; PADDING-TOP: 0in" 

vAlign=top width=105>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><B 

style="mso-bidi-font-weight: normal"><SPAN 

style="FONT-SIZE: 10pt">$12,787,777<o:p></o:p></SPAN></B></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.25in; PADDING-TOP: 0in" 

vAlign=top width=120>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><B 

style="mso-bidi-font-weight: normal"><SPAN 

style="FONT-SIZE: 10pt">$12,798,945<o:p></o:p></SPAN></B></P></TD></TR></TBODY></TABLE>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">Net 

Losses for Fiscal 2002 were<SPAN style="mso-spacerun: yes">  

</SPAN>($551,009). <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Loss Per Share for Fiscal 2002 were 

($0.05).<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Under US GAAP, Net Loss for 2002, would have been 

($963,626). <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Under US GAAP Loss Per Share for Fiscal 2002 would have 

been ($0.09). <B 

style="mso-bidi-font-weight: normal"><U><o:p></o:p></U></B></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Fiscal 2002 compared to Fiscal 

2001<o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company had no revenues in each of the last three fiscal years.<SPAN 

style="mso-spacerun: yes">   </SPAN>Operating expenditures for fiscal 

2002 were $564,221 compared to $436,200 in fiscal 2001.<SPAN 

style="mso-spacerun: yes">  </SPAN>Expenditures increased over 2001 due to 

debt service cost increases of $232,061 from $35,288 in fiscal 2001 to $267,349 

in fiscal 2002.<SPAN style="mso-spacerun: yes">  </SPAN>The increase in 

debt service costs was a result of the new bank loan of $USD 1,200,000 being 

obtain<SPAN class=msoDel><DEL cite="mailto:srreid" datetime="2002-12-03T14:44"> 

</DEL></SPAN><INS cite="mailto:srreid" datetime="2002-12-03T14:44">ed </INS>from 

Peak National Bank in the year.<SPAN style="mso-spacerun: yes">  

</SPAN>This increase was offset by reductions in foreign exchange adjustments 

from $75,207 in fiscal 2001 to $4,699 in fiscal 2002 due to less exposure to 

exchange rate fluctuations and a reduction in wages from $58,639 in fiscal 2001 

to $nil in fiscal 2002.<SPAN style="mso-spacerun: yes">   </SPAN>No 

wages were paid in 2002 due to limited resources available to the 

Company.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Fiscal 2001 compared to Fiscal 

2000<o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company had no revenues in each of the last three fiscal years.<SPAN 

style="mso-spacerun: yes">   </SPAN>Operating expenditures for fiscal 

2001 were $436,200 compared to $397,200 in fiscal 2000.<SPAN 

style="mso-spacerun: yes">  </SPAN>Expenditures increased over 2000 due to 

consulting fee increases of $71,727 from $nil in fiscal 2000 to $71,727 in 

fiscal 2001.<SPAN style="mso-spacerun: yes">  </SPAN>The increase in 

consulting fees, related to related party debt restructuring in fiscal 2001, was 

partially offset by reductions in wages of $20,161 from $78,800 in fiscal 2000 

to $58,639 in fiscal 2000. <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Fiscal 2002<o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company has made the second of four annual payments for the additional ownership 

stated in the Nevada Manhattan agreement of fiscal period 

2000.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T14:48">The Company spent exploration funds as 

follows:</DEL></SPAN></SPAN><SPAN 

style="FONT-SIZE: 6.5pt; mso-bidi-font-size: 10.0pt"><SPAN class=msoDel><DEL 

cite="mailto:srreid" datetime="2002-12-03T14:48"><SPAN 

style="mso-spacerun: yes">   </SPAN></DEL></SPAN><SPAN 

class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T14:48"><o:p></o:p></DEL></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T14:48"><SPAN 

style="mso-spacerun: yes">              

</SPAN></DEL></SPAN><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T14:48"><o:p></o:p></DEL></SPAN></SPAN></P>

<TABLE style="BORDER-COLLAPSE: collapse; mso-padding-alt: 0in 5.4pt 0in 5.4pt" 

cellSpacing=0 cellPadding=0 border=0>

<TBODY>

<TR style="mso-table-deleted: srreid 20021203T1448">

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.7in; PADDING-TOP: 0in" 

vAlign=top width=163>

<P class=MsoHeader style="TEXT-ALIGN: right; tab-stops: .5in" align=right><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T14:48"><o:p></o:p></DEL></SPAN></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 81pt; PADDING-TOP: 0in" 

vAlign=top width=108>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><U><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T14:48">Fiscal<SPAN 

style="mso-spacerun: yes">                           

</SPAN>2001</DEL></SPAN><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T14:48"><o:p></o:p></DEL></SPAN></SPAN></U></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 81pt; PADDING-TOP: 0in" 

vAlign=top width=108>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><U><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T14:48">Fiscal </DEL></SPAN><SPAN class=msoDel><DEL 

cite="mailto:srreid" 

datetime="2002-12-03T14:48"><o:p></o:p></DEL></SPAN></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><U><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T14:48">2002</DEL></SPAN><SPAN class=msoDel><DEL 

cite="mailto:srreid" 

datetime="2002-12-03T14:48"><o:p></o:p></DEL></SPAN></SPAN></U></P></TD></TR>

<TR style="mso-table-deleted: srreid 20021203T1448">

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.7in; PADDING-TOP: 0in" 

vAlign=top width=163>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T14:48">Manhattan Property</DEL></SPAN><SPAN 

class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T14:48"><o:p></o:p></DEL></SPAN></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 81pt; PADDING-TOP: 0in" 

vAlign=top width=108>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T14:48">$176,175</DEL></SPAN><SPAN class=msoDel><DEL 

cite="mailto:srreid" 

datetime="2002-12-03T14:48"><o:p></o:p></DEL></SPAN></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 81pt; PADDING-TOP: 0in" 

vAlign=top width=108>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T14:48">$292,886</DEL></SPAN><SPAN class=msoDel><DEL 

cite="mailto:srreid" 

datetime="2002-12-03T14:48"><o:p></o:p></DEL></SPAN></SPAN></P></TD></TR>

<TR style="mso-table-deleted: srreid 20021203T1448">

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.7in; PADDING-TOP: 0in" 

vAlign=top width=163>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T14:48">Colorado Property</DEL></SPAN><SPAN 

class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T14:48"><o:p></o:p></DEL></SPAN></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 81pt; PADDING-TOP: 0in" 

vAlign=top width=108>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T14:48">$190,566</DEL></SPAN><SPAN class=msoDel><DEL 

cite="mailto:srreid" 

datetime="2002-12-03T14:48"><o:p></o:p></DEL></SPAN></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 81pt; PADDING-TOP: 0in" 

vAlign=top width=108>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T14:48">$120,601</DEL></SPAN><SPAN class=msoDel><DEL 

cite="mailto:srreid" 

datetime="2002-12-03T14:48"><o:p></o:p></DEL></SPAN></SPAN></P></TD></TR>

<TR style="mso-table-deleted: srreid 20021203T1448">

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.7in; PADDING-TOP: 0in" 

vAlign=top width=163>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T14:48">Panama Property</DEL></SPAN><SPAN 

class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T14:48"><o:p></o:p></DEL></SPAN></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 81pt; PADDING-TOP: 0in" 

vAlign=top width=108>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T14:48">$78,988</DEL></SPAN><SPAN class=msoDel><DEL 

cite="mailto:srreid" 

datetime="2002-12-03T14:48"><o:p></o:p></DEL></SPAN></SPAN></P></TD>

<TD 

style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 81pt; PADDING-TOP: 0in" 

vAlign=top width=108>

<P class=MsoNormal style="TEXT-ALIGN: right" align=right><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T14:48">$65,070</DEL></SPAN><SPAN class=msoDel><DEL 

cite="mailto:srreid" 

datetime="2002-12-03T14:48"><o:p></o:p></DEL></SPAN></SPAN></P></TD></TR></TBODY></TABLE>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T14:48"><![if !supportEmptyParas]> <![endif]></DEL></SPAN><SPAN 

class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T14:48"><o:p></o:p></DEL></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Other than the above, the Company does not know of any 

trends, demands, commitments, events or uncertainties that will result in,<SPAN 

class=msoDel><DEL cite="mailto:srreid" datetime="2002-12-03T12:53"> 

</DEL></SPAN> or that are reasonably likely to result in, its liquidity 

either materially increasing <SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T12:53"> </DEL></SPAN>or decreasing <SPAN 

class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T12:53"> </DEL></SPAN>at present or <SPAN 

class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T12:53"> </DEL></SPAN>in<SPAN class=msoDel><DEL 

cite="mailto:srreid" datetime="2002-12-03T12:53"> </DEL></SPAN> the <SPAN 

class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T12:53"> </DEL></SPAN>foreseeable future. Material 

increases or decreases in the Company's liquidity are substantially 

determined by the success or failure of its exploration programs or 

the acquisition of projects.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company intends to raise required additional funds by selling equity or 

debt securities, and/or by selling or joint venturing its properties until 

it develops a cash flow from operations.   While the Company has been 

successful in raising the necessary funds in the past, there can be no assurance 

it can continue to do so.<SPAN style="mso-spacerun: yes">  </SPAN>If such 

funds cannot be secured, the Company will be forced to curtail its 

exploration/development efforts.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt; mso-bidi-font-weight: bold">The Company believes it will 

have adequate access of funds to carry on operations through May 31, 2003, 

however, receipt of these funds is not assured. Calais is presently working with 

a number of private investors and mineral related companies towards completing a 

private placement and/or debt based financing based on management's assessment 

of the state of financial markets and the long-term needs of the Company. Two of 

the Companies directors are providing working capital until a private placement 

is completed. Payments to maintain the integrity of the three gold district 

properties have been kept current.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt; mso-bidi-font-weight: bold"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 10pt"><SPAN 

style="mso-prop-change: pdowad 20021203T1145"><SPAN 

style="mso-prop-change: pdowad 20021203T1145">B. Liquidity and Capital 

Resources<SPAN 

style="mso-prop-change: pdowad 20021203T1145"><o:p></o:p></SPAN></SPAN></SPAN></SPAN></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">In 

the early years of the Company<INS cite="mailto:srreid" 

datetime="2002-12-03T14:44">’s</INS> operations, the Company would acquire small 

property claims, either individually or in joint venture with another junior 

company.<SPAN style="mso-spacerun: yes">  </SPAN>These properties were 

frequently purchased using the issuance of common shares as the Company had 

limited liquidity.<SPAN style="mso-spacerun: yes">  </SPAN>The number of 

shares to be issued was determined following negotiation with arms-length 

sellers and reflected the price of the common shares at that time.<SPAN 

style="mso-spacerun: yes">  </SPAN>Both the Company and the seller were 

aware that Canadian regulatory approval was required prior to stock issuance and 

that market values of such shares to be issued could change.<SPAN 

style="mso-spacerun: yes">  </SPAN>Shares were recorded at fair market 

value at the time of issuance.<SPAN style="mso-spacerun: yes">  

</SPAN>Also, these properties were frequently very speculative ventures and 

subsequent exploration did not discover commercially viable reserves.<SPAN 

style="mso-spacerun: yes">  </SPAN>The Company wrote-off its investment in 

such non-viable properties when such a determination was 

made.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">In 

recent years the Company has limited its investment to larger properties where 

the Company believed the prospects and opportunities for significant reserves 

were better and, if such reserves were discovered, that property development and 

production could be financed and/or the property sold or joint ventured with a 

major mining company.<SPAN style="mso-spacerun: yes">  

</SPAN><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company issued a total of 100,000 shares for the Panama properties in January 

2001, and a further 100,000 shares for the Panama properties in November of 2001 

for a one year option on the Panama placer ground. This option has been extended 

for another year.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company’s Hendrick’s property has an engineering report which indicates 

mineralization insufficient for the Company to attempt production.<SPAN 

style="mso-spacerun: yes">  </SPAN>The Company is continuing to explore 

this property to determine if commercially viable reserves are 

present.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify; tab-stops: .5in"><SPAN 

style="FONT-SIZE: 10pt">The auditors’ report with respect to our financial 

statements for the year ended May 31, 2002 includes an explanatory paragraph 

which describes conditions that raise substantial doubt about our ability to 

continue as a going concern.<SPAN style="mso-spacerun: yes">  </SPAN>The 

financial statements do not include any adjustment that might result from the 

outcome of these uncertainties. The going concern basis of presentation assumes 

that the Company will continue in operation for the foreseeable future and be 

able to realize its assets and discharge its liabilities and commitments in the 

normal course of business. There is significant doubt about the appropriateness 

of the use of the going concern assumption because the Company experienced 

significant losses in 2002 and 2001 and has experienced significant negative 

cash flow from operations over a number of years. In addition, the Company 

recently had to seek an extension on repayment of a $1,200,000 US loan. 

Subsequent to the year-end, the Company began seeking approximately $2,300,000 

US in financing to repay the bank loan, trade creditors and provide operating 

funds. The Company is actively pursuing various options with potential lenders 

and investors which, if accepted, will in management’s view, enable the Company 

to achieve its business plans. No agreements with potential lenders or investors 

have been reached yet and there can be no assurance that such agreements will be 

reached. The ability of the Company to continue as a going concern and to 

realize the carrying value of its assets and discharge its liabilities when due 

is dependent on the successful completion of the actions taken or planned, some 

of which are described above, which management believes will mitigate the 

adverse conditions and events which raise doubt about the validity of the<SPAN 

style="mso-spacerun: yes">  </SPAN>“going concern” assumption used in 

preparing these financial statements. There is no certainty that these and other 

strategies will be sufficient to permit the Company to continue beyond May 31, 

2003. The financial statements do not reflect adjustments that would be 

necessary if the “going concern” assumption were not appropriate. If the “going 

concern” basis was not appropriate for these financial statements, then 

adjustments would be necessary in the carrying value of assets and liabilities, 

the reported revenues and expenses, and the balance sheet classifications 

used.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt"><SPAN 

style="mso-spacerun: yes"> </SPAN><o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Material Capital Commitments/Significant 

Uncertainties<o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Further resource exploration and development is a 

speculative business and involves a high degree of risk.<SPAN 

style="mso-spacerun: yes">  </SPAN>The marketability of minerals, which may 

be acquired or discovered by the Company, will be affected by numerous factors 

beyond the control of the Company.  These factors include 

market fluctuations, the proximity and capacity of mineral markets and 

processing equipment, government regulations, including regulations 

relating to prices, taxes, royalties, land tenure, land use, 

importing and exploration of minerals, and environmental 

protection.  The exact effect of these factors cannot be 

accurately predicted, the combination of these factors may result in the Company 

not receiving an adequate return on capital.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Mining operations generally involve a high 

degree of risk. Hazards such as unusual or 

unexpected formations and other conditions are involved. The 

Company may become subject to liability for pollution, collapses or 

hazards against which it cannot insure or against which it may have a material, 

adverse effect on the Company's financial position.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">There is no assurance that the Company or its joint 

venture partners in the Company's projects will be successful in obtaining the 

required financing.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1158"><B 

style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 10pt"><INS 

cite="mailto:pdowad" datetime="2002-12-03T11:59">C.<SPAN 

style="mso-tab-count: 1">    </SPAN>Research and develoment, 

patents and licenses, etc.<o:p></o:p></INS></SPAN></B></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1159"><B 

style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 10pt"><INS 

cite="mailto:pdowad" 

datetime="2002-12-03T11:59"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></B></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1159"><B 

style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 10pt"><INS 

cite="mailto:pdowad" datetime="2002-12-03T11:59">Not 

applicable.<o:p></o:p></INS></SPAN></B></P>

<P class=MsoNormal 

style="TEXT-ALIGN: justify; mso-list: none; mso-list-ins: pdowad 20021203T1159"><B 

style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 10pt"><INS 

cite="mailto:pdowad" 

datetime="2002-12-03T11:59"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></B></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; tab-stops: -4.5pt; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1159"><B 

style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 10pt"><INS 

cite="mailto:pdowad" datetime="2002-12-03T12:00">D.<SPAN 

style="mso-tab-count: 1">    </SPAN></INS><INS 

cite="mailto:pdowad" datetime="2002-12-03T11:59">Trend 

information.<o:p></o:p></INS></SPAN></B></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1159"><B 

style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 10pt"><INS 

cite="mailto:pdowad" 

datetime="2002-12-03T11:59"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></B></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1159"><B 

style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 10pt"><INS 

cite="mailto:pdowad" datetime="2002-12-03T11:59">Not applicable</INS><SPAN 

style="mso-prop-change: pdowad 20021203T1159"><INS cite="mailto:pdowad" 

datetime="2002-12-03T11:58"><SPAN 

style="mso-prop-change: pdowad 20021203T1159"><o:p></o:p></SPAN></INS></SPAN></SPAN></B></P>

<P class=MsoNormal 

style="MARGIN-LEFT: 0.25in; TEXT-ALIGN: justify; mso-list: none; mso-list-ins: pdowad 20021203T1158"><B 

style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 10pt"><SPAN 

style="mso-prop-change: pdowad 20021203T1157"><![if !supportEmptyParas]><![endif]> <SPAN 

style="mso-prop-change: pdowad 20021203T1157"><o:p></o:p></SPAN></SPAN></SPAN></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt">Critical 

Accounting Policies<o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company’s discussion and analysis of its financial condition and results of 

operations, including the discussion on liquidity and capital resources, are 

based on its consolidated financial statements that have been prepared in 

accordance with Canadian generally accepted accounting principles. The 

preparation of these financial statements requires management to make estimates 

and judgments that affect reported amounts of assets, liabilities, revenues and 

expenses, and related disclosure of contingent assets and liabilities. On an 

ongoing basis, management re-evaluates its estimates and judgments, particularly 

those related to the determination of the impairment of long<INS 

cite="mailto:pdowad" datetime="2002-12-03T11:46">-</INS><SPAN class=msoDel><DEL 

cite="mailto:pdowad" datetime="2002-12-03T11:46"> </DEL></SPAN>lived assets. 

Management bases its estimates and judgments on historical experience, 

contractual arrangements and commitments and on various other assumptions that 

it believes are reasonable in the circumstances. Changes in these estimates and 

judgments will impact the amounts recognized in the consolidated financial 

statements, and the impact may be material. Management believes the following 

critical accounting policies require more significant estimates and judgments in 

the preparation of the consolidated financial statements.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

consolidated financial statements have been prepared on the going concern basis, 

which assumes the realization of assets and liquidation of liabilities in the 

normal course of operations. If the Company was not to continue as a going 

concern, it would likely not be able to realize on its assets at values 

comparable to the carrying value or the fair value estimates reflected in the 

balances set out in the preparation of the consolidated financial statements. As 

described elsewhere in this report, at May 31, 2002, there are certain 

conditions that currently exist which raise substantial doubt about the validity 

of this assumption. While the Company anticipates raising additional private 

placement funds to remove the substantial doubt, these private placements are 

not assured. Failure to raise additional funds may result in the Company 

curtailing operations or writing assets and liabilities down to liquidation 

values, or both.<INS cite="mailto:pdowad" 

datetime="2002-12-03T11:47"><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1147"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" datetime="2002-12-03T11:47"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1147"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" 

datetime="2002-12-03T11:47">For Canadian GAAP purposes, the Company capitalizes 

exploration costs incurred.<SPAN style="mso-spacerun: yes">  </SPAN>The 

</INS><INS cite="mailto:pdowad" datetime="2002-12-03T11:51">recoverability of 

the capitalized costs include</INS><INS cite="mailto:pdowad" 

datetime="2002-12-03T11:52">s</INS><INS cite="mailto:pdowad" 

datetime="2002-12-03T11:51"> consideration</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T12:23">s</INS><INS cite="mailto:pdowad" 

datetime="2002-12-03T11:51"> primarily of management</INS><INS 

cite="mailto:pdowad" datetime="2002-12-03T11:53">’s exploration, development and 

holding plans and expectations with respect to the property, </INS><INS 

cite="mailto:pdowad" datetime="2002-12-03T11:51">potential mineralization, costs 

to recovery, commodity prices and </INS><INS cite="mailto:pdowad" 

datetime="2002-12-03T11:54">the potential for third party agreements on 

development.<SPAN style="mso-spacerun: yes">  </SPAN>Certain of these 

factors are beyond the Company’s control.<SPAN style="mso-spacerun: yes">  

</SPAN>Other factors, such as management’s plans and expectations, while 

supporting continued capitalization at this time may change and that change may 

be material to the financial statements.</INS><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Legal proceedings<SPAN style="mso-tab-count: 1"> 

</SPAN></SPAN><B style="mso-bidi-font-weight: normal"><SPAN 

style="COLOR: red"><o:p></o:p></SPAN></B></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="COLOR: red"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Other than discussed below, the Company knows of no 

material, active or pending legal proceedings against them.<SPAN 

style="mso-spacerun: yes">  </SPAN>Other than discussed below, the Company 

in not involved as a plaintiff in any material proceeding or pending 

litigation.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Other than discussed below, the Company knows of no 

active or pending proceedings against anyone that might materially adversely 

affect an interest of the Company.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">A 

Writ of Summons and Statement of Claim was filed in Supreme Court of British 

Columbia on May 21, 2002 re monies owing and payable to Devlin Jensen for 

services provided in the amount of $63,368 plus interest and costs incurred 

therein.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">A 

Claim made in Alberta by BDO Dunwoody for services provided in the amount of 

$48,864 plus interest and costs incurred therein.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company has provided for these claims.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt">ITEM 

6.<SPAN style="mso-spacerun: yes">  </SPAN>DIRECTORS, SENIOR MANAGEMENT AND 

EMPLOYEES<o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal 

style="MARGIN-LEFT: 0.5in; TEXT-INDENT: -0.5in; TEXT-ALIGN: justify; tab-stops: list .75in; mso-text-indent-alt: -.5in; mso-list: l24 level1 lfo26; mso-list-ins: pdowad 20021203T1201"><![if !supportLists]><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" 

datetime="2002-12-03T12:01">A.<SPAN 

style="FONT: 7pt 'Times New Roman'">                            

</SPAN></INS></SPAN><![endif]><SPAN style="FONT-SIZE: 10pt"><INS 

cite="mailto:pdowad" datetime="2002-12-03T12:01">Directors and senior 

management<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1201"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" datetime="2002-12-03T12:01"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1201"><SPAN 

style="FONT-SIZE: 10pt">The following table lists, as of November 29, 2002, the 

names of all the Directors of the Registrant.<SPAN 

style="mso-spacerun: yes">  </SPAN>The Directors generally serve in their 

respective capacities from their election on the day of the Annual General 

Meeting of the Registrant, last held on November 14, 2002 and will serve until 

the next Annual General Meeting or until a successor is duly elected, unless the 

office is vacated in accordance with the Articles of the 

Registrant.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Casual vacancies on the Board of Directors are filled by 

the remaining Directors and the persons filling those vacancies hold office 

until the next Annual General Meeting at which time they may be re-elected or 

replaced.<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt">Directors<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN 

style="mso-spacerun: yes">                                                       

</SPAN>Date First<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Name<SPAN 

style="mso-spacerun: yes">     </SPAN><SPAN 

style="mso-spacerun: yes">                            </SPAN>Age<SPAN 

style="mso-spacerun: yes">     </SPAN>Elected or 

Appointed<o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify; tab-stops: 261.0pt"><SPAN 

style="FONT-SIZE: 10pt">Marlowe Harvey<SPAN 

style="mso-spacerun: yes">                       

</SPAN><SPAN style="mso-tab-count: 1">       

</SPAN>49<SPAN 

style="mso-spacerun: yes">          

</SPAN>July 1992<o:p></o:p></SPAN></P>

<P class=MsoFootnoteText style="tab-stops: right 387.0pt">Melvin W. Martin 

(1)<SPAN 

style="mso-spacerun: yes">                

</SPAN><SPAN style="mso-tab-count: 1"></SPAN><SPAN 

style="mso-spacerun: yes">       </SPAN>62<SPAN 

style="mso-spacerun: yes">       </SPAN>October 

1992</P>

<P class=MsoNormal style="TEXT-ALIGN: justify; tab-stops: 261.0pt"><SPAN 

style="FONT-SIZE: 10pt">Art Daher<SPAN 

style="mso-spacerun: yes">                            

</SPAN><SPAN style="mso-tab-count: 1">       

</SPAN>70<SPAN style="mso-spacerun: yes">      

</SPAN>November 1995<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify; tab-stops: 261.0pt"><SPAN 

style="FONT-SIZE: 10pt">Tom Hendricks<SPAN 

style="mso-tab-count: 1">                               

</SPAN>53<SPAN style="mso-tab-count: 1">   </SPAN><SPAN 

style="mso-spacerun: yes">    </SPAN>December 

1997<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify; tab-stops: 261.0pt"><SPAN 

style="FONT-SIZE: 10pt">Robert Akright (1)<SPAN 

style="mso-tab-count: 1">                          

</SPAN>78<SPAN style="mso-tab-count: 1">   </SPAN><SPAN 

style="mso-spacerun: yes">      </SPAN>August 

1998<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify; tab-stops: 261.0pt"><SPAN 

style="FONT-SIZE: 10pt">Tom Patton (1)<SPAN 

style="mso-tab-count: 1">                              

</SPAN>59<SPAN style="mso-tab-count: 1">   </SPAN><SPAN 

style="mso-spacerun: yes">        </SPAN>June 

2000<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 6.5pt; mso-bidi-font-size: 10.0pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal 

style="MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; TEXT-ALIGN: justify; tab-stops: list 27.0pt; mso-list: l26 level1 lfo5; mso-list-change: '\(%1\:1\:0\:\)' pdowad 20021203T1127"><![if !supportLists]><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">(1)<SPAN 

style="FONT: 7pt 'Times New Roman'">        

</SPAN></SPAN><![endif]><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">Members of the Audit 

Committee of the Board of Directors.<o:p></o:p></SPAN></P>

<P class=MsoNormal 

style="MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; TEXT-ALIGN: justify; tab-stops: list 27.0pt; mso-text-indent-alt: -27.0pt; mso-list: l26 level1 lfo5; mso-list-change: '\(%1\:2\:0\:\)' pdowad 20021203T1127"><![if !supportLists]><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">(2)<SPAN 

style="FONT: 7pt 'Times New Roman'">        

</SPAN></SPAN><![endif]><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">All Directors are residents 

and citizens of Canada with the exception of Tom Hendricks and Robert Akright of 

Colorado, U.S.A. and Tom Patton of Washington, U.S.A.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

following table lists, as of October 31, 2002, the names of all of the Executive 

Officers of the Registrant.<SPAN style="mso-spacerun: yes">  

</SPAN>Executive Officers are appointed by the Board of Directors and hold 

office indefinitely at the pleasure of the Board of Directors.<SPAN 

style="mso-spacerun: yes">  </SPAN><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt">Executive Officers<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN 

style="mso-spacerun: yes">                                                       

</SPAN>Date First <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Name<SPAN 

style="mso-spacerun: yes">               

</SPAN>Age<SPAN style="mso-spacerun: yes">   </SPAN>Title<SPAN 

style="mso-spacerun: yes">                 

</SPAN>Appointed to Position<o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify; tab-stops: 117.0pt"><SPAN 

style="FONT-SIZE: 10pt">Tom Hendricks<SPAN 

style="mso-tab-count: 1">       </SPAN>53<SPAN 

style="mso-spacerun: yes">   </SPAN>President & CEO<SPAN 

style="mso-spacerun: yes">          

</SPAN><SPAN 

style="mso-spacerun: yes">         </SPAN>June 

2000<SPAN style="mso-spacerun: yes">       

</SPAN><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify; tab-stops: 117.0pt"><SPAN 

style="FONT-SIZE: 10pt">Robert Akright<SPAN 

style="mso-tab-count: 1">      </SPAN>78<SPAN 

style="mso-tab-count: 1">   </SPAN>Vice President<SPAN 

style="mso-tab-count: 3">                

</SPAN><SPAN style="mso-spacerun: yes">     </SPAN>June 

2000<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify; tab-stops: 117.0pt"><SPAN 

style="FONT-SIZE: 10pt">Melvin Martin<SPAN 

style="mso-tab-count: 1">       </SPAN>62<SPAN 

style="mso-tab-count: 1">   </SPAN>Chairman of the Board<SPAN 

style="mso-spacerun: yes">     </SPAN><SPAN 

style="mso-tab-count: 1">    </SPAN><SPAN 

style="mso-spacerun: yes">    </SPAN>March 

1999<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify; tab-stops: 117.0pt"><SPAN 

style="FONT-SIZE: 10pt">Andrew Murray<SPAN 

style="mso-spacerun: yes">      </SPAN>52<SPAN 

style="mso-spacerun: yes">   </SPAN>VP Finance/Administration<SPAN 

style="mso-spacerun: yes">       </SPAN>October 

1992<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">Art 

Daher<SPAN 

style="mso-spacerun: yes">          

</SPAN>70<SPAN style="mso-spacerun: yes">   </SPAN>Secretary<SPAN 

style="mso-spacerun: yes">                   

</SPAN><SPAN style="mso-spacerun: yes">   </SPAN>November 

1995<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">No 

Director and/or Executive Officer has been the subject of any order, 

judgment, or decree of any governmental agency or administrator 

or of any court or competent jurisdiction, revoking or suspending 

for cause any license, permit or other authority of such person or of any 

corporation of which he is a Director and/or Executive Officer, to engage in the 

securities business or in the sale of a particular security or temporarily or 

permanently restraining or enjoining any such person or any corporation of 

which he is an officer or director from engaging 

in or continuing any conduct, practice, or employment 

in connection with the purchase or sale of securities, or 

convicting such person of any felony or misdemeanor involving a security 

 or any aspect of the securities business or of theft or of any 

felony.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">While the Executive Officers/Directors of the Company 

are involved in other business ventures and do not spend full time on the 

affairs of the Company, the Company believes that each devotes as much time to 

the affairs of the Company as are required to satisfactorily carry out their 

duty.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">There are no family relationships between any 

two or more Directors or Executive Officers.<SPAN 

style="mso-spacerun: yes">  </SPAN> There are no arrangements or 

understandings between any two or more Directors or 

Executive Officers, pursuant to which he was selected as a Director or 

Executive Officer.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN style="mso-prop-change: pdowad 20021203T1202"><INS 

cite="mailto:pdowad" datetime="2002-12-03T12:02"><SPAN 

style="mso-prop-change: pdowad 20021203T1202">B.<SPAN 

style="mso-tab-count: 1">    </SPAN></SPAN></INS><SPAN 

style="mso-prop-change: pdowad 20021203T1202"><SPAN 

style="mso-prop-change: pdowad 20021203T1202">Compensation<SPAN 

style="mso-prop-change: pdowad 20021203T1202"><SPAN class=msoDel><DEL 

cite="mailto:pdowad" datetime="2002-12-03T12:02"><SPAN 

style="mso-prop-change: pdowad 20021203T1202"> of Officers and 

Directors</SPAN></DEL></SPAN><SPAN 

style="mso-prop-change: pdowad 20021203T1202"><SPAN 

style="mso-prop-change: pdowad 20021203T1202"><o:p></o:p></SPAN></SPAN></SPAN></SPAN></SPAN></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company has no formal plan for compensating its Directors for their service in 

their capacity as Directors.   Directors are entitled to reimbursement for 

reasonable travel and other out-of-pocket expenses incurred in connection with 

attendance at meetings of the Board of Directors.<SPAN 

style="mso-spacerun: yes">  </SPAN>The Board of Directors may award special 

remuneration to any Director undertaking any special services on behalf of the 

Company other than services ordinarily required of a Director.<SPAN 

style="mso-spacerun: yes">  </SPAN>Other than indicated below no Director 

received any compensation for his services as a Director, including committee 

participation and/or special assignments.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company grants stock options to Directors, Executive Officers and 

employees; refer to "Options to Purchase Securities from Registrant or 

Subsidiaries", below.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Other than described below, no funds were set aside or 

accrued by the Company during Fiscal 2002 to provide pension, retirement or 

similar benefits for Directors or Executive Officers.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company has no plans or arrangements in respect of 

remuneration received or that may be received by Executive Officers 

of the Company in Fiscal 2003 to compensate <SPAN class=msoDel><DEL 

cite="mailto:pdowad" datetime="2002-12-03T11:55"> </DEL></SPAN>such 

officers in the event of termination of employment (as a result of resignation, 

retirement, change of control) or a change of responsibilities following a 

change of control, where the value of such compensation exceeds US $60,000 per 

Executive Officer.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">No 

Executive Officer/Director received other compensation in excess of the lesser 

of US $25,000 or 10% of such officer's cash compensation, and all Executive 

Officers/Directors as a group did not receive other compensation which exceeded 

US $25,000 times the number of persons in the group or 10% of the 

compensation.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Except for the stock option program discussed below, 

<SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:08"> </DEL></SPAN>the Company has no material bonus 

or profit sharing plans <SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:08"> </DEL></SPAN>pursuant to which cash or 

non-cash compensation is or may be paid to the Company's Directors or Executive 

Officers.<INS cite="mailto:pdowad" 

datetime="2002-12-03T12:03"><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-ALIGN: justify; mso-list: none; mso-list-ins: pdowad 20021203T1203"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" 

datetime="2002-12-03T12:03"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:51"><![if !supportEmptyParas]> <![endif]><o:p></o:p></DEL></SPAN></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1203"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" 

datetime="2002-12-03T12:03"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T12:56">[WHERE IS THE INFORMATION REQUIRED BY ITEM 6C AND 

D]</DEL></SPAN></INS><INS cite="mailto:srreid" 

datetime="2002-12-03T13:03"><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1303"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" datetime="2002-12-03T13:03"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="MARGIN-LEFT: 0.5in; TEXT-INDENT: -0.5in; TEXT-ALIGN: justify; tab-stops: list .5in; mso-text-indent-alt: -.5in; mso-list: l3 level1 lfo31; mso-list-ins: srreid 20021203T1303"><![if !supportLists]><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:03">C.<SPAN 

style="FONT: 7pt 'Times New Roman'">                

</SPAN></INS></SPAN><![endif]><SPAN style="FONT-SIZE: 10pt"><INS 

cite="mailto:srreid" datetime="2002-12-03T13:03"><SPAN 

style="mso-spacerun: yes"> </SPAN>Board 

Practices<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="MARGIN-LEFT: 0.25in; TEXT-INDENT: -0.25in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1303"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" datetime="2002-12-03T12:56"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1306"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:06">The Directors generally serve in their respective 

capacities from their election on the day of the Annual General Meeting of the 

Registrant, last held on November 14, 2002 and will serve until the next Annual 

General Meeting or until a successor is duly elected, unless the office is 

vacated in accordance with the Articles of the 

Registrant.<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1306"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" datetime="2002-12-03T13:06"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-ALIGN: justify; mso-list: none; mso-list-ins: srreid 20021203T1303"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:06">Casual vacancies on the Board of Directors are 

filled by the remaining Directors and the persons filling those vacancies hold 

office until the next Annual General Meeting at which time they may be 

re-elected or replaced.<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1306"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" datetime="2002-12-03T13:06"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1306"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:06">The Company does not have any formal service 

contracts with Directors.<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1307"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" datetime="2002-12-03T13:07"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1307"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:07">The members of the audit committee are listed under 

Item 6A. </INS><INS cite="mailto:srreid" datetime="2002-12-03T13:12"><SPAN 

style="mso-spacerun: yes"> </SPAN>There are no formal terms of reference 

for this committee.<SPAN style="mso-spacerun: yes">  </SPAN></INS><INS 

cite="mailto:srreid" datetime="2002-12-03T13:03"><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-ALIGN: justify; mso-list: none; mso-list-ins: srreid 20021203T1302"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" datetime="2002-12-03T12:56"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="MARGIN-LEFT: 0.5in; TEXT-INDENT: -0.5in; TEXT-ALIGN: justify; tab-stops: list .5in; mso-text-indent-alt: -.5in; mso-list: l31 level1 lfo30; mso-list-ins: srreid 20021203T1302"><![if !supportLists]><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:02">D.<SPAN 

style="FONT: 7pt 'Times New Roman'">                

</SPAN></INS></SPAN><![endif]><SPAN style="FONT-SIZE: 10pt"><INS 

cite="mailto:srreid" datetime="2002-12-03T13:02"><SPAN 

style="mso-spacerun: yes"> </SPAN></INS><INS cite="mailto:srreid" 

datetime="2002-12-03T12:56">Employees<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1257"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" datetime="2002-12-03T12:57"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1257"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" datetime="2002-12-03T12:58">As 

of May 31, 2002, the company had no employees.<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1301"><SPAN 

style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Options to purchase securities from registrant or 

subsidiaries</SPAN></U><SPAN style="FONT-SIZE: 10pt"><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 6.5pt; mso-bidi-font-size: 10.0pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Stock Options to purchase securities from Registrant can 

be granted to Directors and Employees of the Company on terms and conditions 

acceptable to the regulatory authorities in Canada, notably the Canadian Venture 

Exchange and the British Columbia Securities Commission.<SPAN 

style="mso-spacerun: yes">  </SPAN>The Registrant has no formal written 

stock option plan.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Under the stock option program, stock options for up to 

10%  of the number of issued and outstanding common shares may be granted 

from time to time, provided that stock options in favor of any one individual 

may not exceed 5% of the issued and outstanding common shares.<SPAN 

style="mso-spacerun: yes">  </SPAN>No stock option granted under the stock 

option program is transferable by the optionee other than by will or the laws of 

descent/distribution and each stock option is exercisable during the lifetime of 

the optionee only by such optionee.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

exercise price of all stock options granted under the stock option program must 

be at least equal to the fair market value (subject to regulated discounts) of 

such common shares on the date of grant, and the maximum term of each stock 

option may not exceed five years.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

exercise prices for stock options are determined in accordance 

with OTC Bulletin Board ("OTCBB") guidelines and reflect the average closing 

price of the Registrant's common shares for the ten trading days on the OTCBB 

immediately preceding the day on which the Directors grant and publicly announce 

the stock options (subject to a regulatory-acceptable discount<SPAN 

style="mso-bidi-font-weight: bold">)</SPAN><B 

style="mso-bidi-font-weight: normal">,<SPAN style="COLOR: red"> </SPAN></B><SPAN 

style="mso-bidi-font-weight: bold">and/or at a price no lower than $0.45 

exercise price per share. <o:p></o:p></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><SPAN style="COLOR: red"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><SPAN style="COLOR: red"><SPAN 

style="mso-spacerun: yes">  </SPAN></SPAN></B><B 

style="mso-bidi-font-weight: normal"><U><SPAN 

style="FONT-SIZE: 10pt"><o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

names and titles of Directors and Executive Officers of the Registrant to whom 

outstanding stock options have been granted and the number of common shares 

subject to such options are set forth below as of 10/31/02, as well as the 

number of options granted to Directors and all employees as a 

group.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt">Stock Options Outstanding<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 6.5pt; mso-bidi-font-size: 10.0pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN 

style="mso-spacerun: yes">                         

</SPAN><SPAN style="mso-tab-count: 1">     </SPAN>Number of 

Shares of<SPAN style="mso-spacerun: yes">     

</SPAN>CDN$<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><SPAN 

style="mso-spacerun: yes">                                      

</SPAN><SPAN style="mso-tab-count: 1">    </SPAN>Common<SPAN 

style="mso-spacerun: yes">    </SPAN>Exercise<SPAN 

style="mso-spacerun: yes">   </SPAN>Expiration<o:p></o:p></SPAN></P>

<P class=MsoNormal><U><SPAN style="FONT-SIZE: 10pt">Name<SPAN 

style="mso-spacerun: yes">      </SPAN><SPAN 

style="mso-tab-count: 3">              

</SPAN><SPAN 

style="mso-spacerun: yes">                  </SPAN>Stock<SPAN 

style="mso-spacerun: yes">      </SPAN>Price<SPAN 

style="mso-spacerun: yes">         

</SPAN>Date<o:p></o:p></SPAN></U></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt">Andrew Murray<SPAN 

style="mso-tab-count: 5">                             

</SPAN>89,000<SPAN style="mso-tab-count: 1">      

</SPAN>0.45<SPAN style="mso-tab-count: 1">  </SPAN><SPAN 

style="mso-spacerun: yes">   </SPAN>10/26/2003<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt">Art Daher<SPAN 

style="mso-tab-count: 6">                                 

</SPAN>50,000<SPAN style="mso-tab-count: 1">      

</SPAN>0.45<SPAN style="mso-tab-count: 1">  </SPAN><SPAN 

style="mso-spacerun: yes">   </SPAN>10/26/2003<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt">Art Daher<SPAN 

style="mso-tab-count: 4">                     

</SPAN><SPAN style="mso-spacerun: yes">     </SPAN><SPAN 

style="mso-tab-count: 2">       </SPAN>50,000<SPAN 

style="mso-tab-count: 1">      </SPAN>0.45<SPAN 

style="mso-tab-count: 1">  </SPAN><SPAN 

style="mso-spacerun: yes">   </SPAN>08/11/2005<o:p></o:p></SPAN></P>

<P class=MsoFootnoteText>Robert Akright<SPAN 

style="mso-tab-count: 5">                            

</SPAN>100,000<SPAN style="mso-tab-count: 1">     

</SPAN>0.45<SPAN style="mso-tab-count: 1">  </SPAN><SPAN 

style="mso-spacerun: yes">   </SPAN>10/26/2003</P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">Tom 

Hendricks<SPAN 

style="mso-tab-count: 5">                             

</SPAN>100,000<SPAN style="mso-tab-count: 1">     

</SPAN>0.45<SPAN style="mso-tab-count: 1">  </SPAN><SPAN 

style="mso-spacerun: yes">   </SPAN>10/26/2003<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Melvin Martin<SPAN 

style="mso-tab-count: 5">                             

</SPAN>75,000<SPAN style="mso-tab-count: 1">      

</SPAN>0.45<SPAN style="mso-tab-count: 1">  </SPAN><SPAN 

style="mso-spacerun: yes">   </SPAN>10/26/2003<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">Tom 

Patton<SPAN 

style="mso-tab-count: 4">                    

</SPAN><SPAN 

style="mso-spacerun: yes">        

</SPAN><SPAN style="mso-tab-count: 1">    </SPAN>100,000<SPAN 

style="mso-tab-count: 1">     </SPAN>0.45<SPAN 

style="mso-tab-count: 1">  </SPAN><SPAN 

style="mso-spacerun: yes">   </SPAN>08/11/2005<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Total Officers/Directors (6 persons) <SPAN 

style="mso-tab-count: 1">     

</SPAN>650,250<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Total Employees (9 persons)<SPAN 

style="mso-spacerun: yes">          

</SPAN><SPAN style="mso-tab-count: 1">     

</SPAN><U>375,000</U><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 10pt">Total 

Officers/Directors/Employees<SPAN 

style="mso-spacerun: yes">      

</SPAN>1,025,250<o:p></o:p></SPAN></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Warrants<o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt">Warrants Outstanding <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal 

style="MARGIN-LEFT: 1in; TEXT-INDENT: 0.5in; TEXT-ALIGN: center" 

align=center><SPAN style="FONT-SIZE: 10pt"><SPAN 

style="mso-spacerun: yes"> </SPAN><SPAN 

style="mso-tab-count: 2">           

</SPAN>US $<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><SPAN 

style="mso-spacerun: yes">                             

</SPAN>Number of shares<SPAN style="mso-spacerun: yes">    

</SPAN><SPAN style="mso-tab-count: 1">     

</SPAN>Exercise<SPAN style="mso-spacerun: yes">   

</SPAN>Expiration<o:p></o:p></SPAN></P>

<P class=MsoNormal><U><SPAN style="FONT-SIZE: 10pt">Name<SPAN 

style="mso-spacerun: yes">      </SPAN><SPAN 

style="mso-tab-count: 3">              

</SPAN><SPAN 

style="mso-spacerun: yes">       </SPAN>of 

common stock<SPAN 

style="mso-spacerun: yes">        

</SPAN>Price<SPAN 

style="mso-spacerun: yes">         

</SPAN>Date<o:p></o:p></SPAN></U></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt">Joyce & Ron Guiel<SPAN 

style="mso-tab-count: 4">                   

</SPAN><SPAN style="mso-spacerun: yes">  </SPAN>62,500<SPAN 

style="mso-tab-count: 2">          

</SPAN>0.80<SPAN style="mso-tab-count: 1">  </SPAN><SPAN 

style="mso-spacerun: yes">   </SPAN>09/12/2003<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt">National Capital<SPAN 

style="mso-tab-count: 4">                    

</SPAN>486,303 <SPAN 

style="mso-tab-count: 2">         

</SPAN>0.81<SPAN style="mso-tab-count: 1">  </SPAN><SPAN 

style="mso-spacerun: yes">   </SPAN>10/23/2004<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt; mso-bidi-font-weight: bold">All warrants were issued 

subsequent to the Company’s May 31, 2002 fiscal year end.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt">ITEM 

7.<SPAN style="mso-spacerun: yes">  </SPAN>MAJOR SHAREHOLDERS AND RELATED 

PARTY TRANSACTIONS </SPAN></U></B><SPAN 

style="FONT-SIZE: 10pt"><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Registrant is a publicly owned corporation, the shares of which are owned by 

Canadian and US residents, and residents of other countries. The 

Registrant is not owned or controlled directly or indirectly by another 

corporation or any foreign government, other than disclosed 

below.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal 

style="MARGIN-LEFT: 0.75in; TEXT-INDENT: -0.75in; TEXT-ALIGN: justify; tab-stops: list .75in; mso-text-indent-alt: -.75in; mso-list: l18 level1 lfo27; mso-list-ins: pdowad 20021203T1204"><![if !supportLists]><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" 

datetime="2002-12-03T12:04">A.<SPAN 

style="FONT: 7pt 'Times New Roman'">                            

</SPAN></INS></SPAN><![endif]><SPAN style="FONT-SIZE: 10pt"><INS 

cite="mailto:pdowad" datetime="2002-12-03T12:04">Major 

shareholders<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1204"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" datetime="2002-12-03T12:04"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1204"><SPAN 

style="FONT-SIZE: 10pt">The only persons known to the Registrant to be holding, 

as of 10/31/02, 10% or more beneficial interest in the Registrant’s outstanding 

stock was Marlowe Harvey, as described below.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

following table lists, as of 10/31/02, all Directors and Executive Officers who 

beneficially own the Registrant's voting securities and the amount of the 

Registrant's voting securities owned by the Directors and Executive Officers as 

a group.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN 

style="mso-spacerun: yes">                          

</SPAN><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN 

style="mso-spacerun: yes">       

</SPAN>Shareholdings of Directors and Executive Officers<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 6.5pt; mso-bidi-font-size: 10.0pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt">Title<SPAN 

style="mso-spacerun: yes">                                 

</SPAN>Amount and Nature<SPAN style="mso-spacerun: yes">   

</SPAN>Percent<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><SPAN 

style="mso-spacerun: yes">  </SPAN>of<SPAN 

style="mso-spacerun: yes">                                      

</SPAN>of Beneficial<SPAN 

style="mso-spacerun: yes">        

</SPAN>of<o:p></o:p></SPAN></P>

<P class=MsoNormal><U><SPAN style="FONT-SIZE: 10pt">Class<SPAN 

style="mso-spacerun: yes">    </SPAN>Name of Beneficial 

Owner<SPAN 

style="mso-spacerun: yes">             

</SPAN>Ownership<SPAN style="mso-spacerun: yes">   </SPAN>Class 

#<o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="tab-stops: 364.5pt"><SPAN 

style="FONT-SIZE: 10pt">Common<SPAN style="mso-spacerun: yes">   

</SPAN>Marlowe Harvey (1)<SPAN 

style="mso-spacerun: yes">                   

</SPAN>1,881,500<SPAN style="mso-spacerun: yes">     

</SPAN>17.5%<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt">Common<SPAN 

style="mso-spacerun: yes">   </SPAN>Tom Hendricks (3)<SPAN 

style="mso-tab-count: 4">                      

</SPAN>804,364<SPAN style="mso-spacerun: yes">      

</SPAN>7.5%<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt">Common<SPAN 

style="mso-spacerun: yes">   </SPAN>Melvin Martin (2)<SPAN 

style="mso-spacerun: yes">                      

</SPAN>524,500<SPAN style="mso-spacerun: yes">      

</SPAN>4.9%<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt">Common<SPAN 

style="mso-spacerun: yes">   </SPAN>Andrew Murray (4)<SPAN 

style="mso-spacerun: yes">                      

</SPAN>140,900<SPAN style="mso-spacerun: yes">      

</SPAN>1.3%<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt">Common<SPAN 

style="mso-spacerun: yes">   </SPAN>Art Daher (5)<SPAN 

style="mso-spacerun: yes">                          

</SPAN>256,160<SPAN style="mso-spacerun: yes">      

</SPAN>2.4%<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt">Common<SPAN 

style="mso-spacerun: yes">   </SPAN>Robert Akright (6)<SPAN 

style="mso-tab-count: 4">                     

</SPAN>100,000<SPAN style="mso-tab-count: 1">     

</SPAN>0.9%<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt">Common<SPAN 

style="mso-spacerun: yes">   </SPAN>Tom Patton<SPAN 

style="mso-tab-count: 1">     </SPAN>(7)<SPAN 

style="mso-tab-count: 4">                     

</SPAN>100,000<SPAN style="mso-tab-count: 1">     

</SPAN>0.9%<o:p></o:p></SPAN></P>

<P class=MsoNormal><B style="mso-bidi-font-weight: normal"><SPAN 

style="FONT-SIZE: 10pt"><SPAN 

style="mso-spacerun: yes">         

</SPAN>Total Directors/Officers<SPAN 

style="mso-spacerun: yes">             

</SPAN>3,807,424<SPAN style="mso-spacerun: yes">     

</SPAN>35.4%<o:p></o:p></SPAN></B></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 6.5pt; mso-bidi-font-size: 10.0pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="tab-stops: 27.0pt"><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">(1)<SPAN 

style="mso-spacerun: yes">  </SPAN>150,000 shares are escrowed where resale 

is controlled by<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><SPAN 

style="mso-spacerun: yes">     </SPAN>Canadian regulatory 

authorities.<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><SPAN 

style="mso-spacerun: yes">     </SPAN>Excludes 132,000 stock 

options held by members of Mr. Harvey’s<o:p></o:p></SPAN></P>

<P class=MsoNormal style="tab-stops: 4.5in 6.0in"><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><SPAN 

style="mso-spacerun: yes">     </SPAN>family, where he 

disclaims beneficial ownership and does not<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><SPAN 

style="mso-spacerun: yes">     </SPAN>exercise voting 

control.<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">(2)<SPAN 

style="mso-spacerun: yes">  </SPAN>75,000 represent currently exercisable 

stock options.<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">(3)<SPAN 

style="mso-spacerun: yes">  </SPAN>100,000 represent currently exercisable 

stock options.<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">(4)<SPAN 

style="mso-spacerun: yes">  </SPAN>89,000 represent currently exercisable 

stock options.<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">(5)<SPAN 

style="mso-spacerun: yes">  </SPAN>100,000 represent currently exercisable 

stock options.<o:p></o:p></SPAN></P>

<P class=MsoNormal 

style="MARGIN-LEFT: 0.25in; TEXT-INDENT: -0.25in; tab-stops: list .25in; mso-text-indent-alt: -.25in; mso-list: l7 level1 lfo9; mso-list-change: '\(%1\:6\:0\:\)' pdowad 20021203T1127"><![if !supportLists]><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">(6)<SPAN 

style="FONT: 7pt 'Times New Roman'">  </SPAN></SPAN><![endif]><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><SPAN 

style="mso-spacerun: yes">  </SPAN>100,000 represent currently 

exercisable stock options.<o:p></o:p></SPAN></P>

<P class=MsoNormal 

style="MARGIN-LEFT: 0.25in; TEXT-INDENT: -0.25in; tab-stops: list .25in; mso-text-indent-alt: -.25in; mso-list: l7 level1 lfo9; mso-list-change: '\(%1\:7\:0\:\)' pdowad 20021203T1127"><![if !supportLists]><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt">(7)<SPAN 

style="FONT: 7pt 'Times New Roman'">  </SPAN></SPAN><![endif]><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><SPAN 

style="mso-spacerun: yes">  </SPAN>100,000 represent currently 

exercisable stock options.<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"># 

 Based on 10,744,218 shares outstanding as of 10/31/02 and 

share<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><SPAN 

style="mso-spacerun: yes">   </SPAN>purchase warrants and stock 

options held by each beneficial holder<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><SPAN 

style="mso-spacerun: yes">   </SPAN>exercisable within sixty 

days.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Interest of Management in certain transactions 

<o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

following are the only transactions since June 01, 2001, or proposed 

transactions, which have materially affected or will materially affect the 

Company in which any director, executive officer, or beneficial holder of more 

that 10% of the outstanding common shares, or any of their respective relatives, 

spouses, associates or affiliates has had or  will  have  any 

direct or material indirect interest.<SPAN style="mso-spacerun: yes">  

</SPAN>Management believes the transactions referenced below were on terms at 

least as favorable to the Company as the Company could have obtained from 

unaffiliated parties.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Purchases of Common Shares by 

Officers/Directors<o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">During Fiscal 2002, the Company issued 721,000 common 

shares for services provided valued at $216,300 to directors or to companies 

controlled by directors of the Company.<INS cite="mailto:pdowad" 

datetime="2002-12-03T12:04"><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1204"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" datetime="2002-12-03T12:04"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1204"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" 

datetime="2002-12-03T12:04"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:20">[WHERE ARE ITEMS 7B AND C </DEL></SPAN><INS 

datetime="2002-12-03T12:05"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:20">–</DEL></SPAN><INS datetime="2002-12-03T12:04"><SPAN 

class=msoDel><DEL cite="mailto:srreid" datetime="2002-12-03T13:20"> C 

</DEL></SPAN><INS datetime="2002-12-03T12:05"><SPAN class=msoDel><DEL 

cite="mailto:srreid" datetime="2002-12-03T13:20">IS 

N/A]</DEL></SPAN></INS></INS></INS></INS><INS cite="mailto:srreid" 

datetime="2002-12-03T13:20"><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="MARGIN-LEFT: 0.75in; TEXT-INDENT: -0.75in; TEXT-ALIGN: justify; tab-stops: list .75in; mso-text-indent-alt: -.75in; mso-list: l18 level1 lfo27; mso-list-ins: srreid 20021203T1321"><![if !supportLists]><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:21">B.<SPAN 

style="FONT: 7pt 'Times New Roman'">                            

</SPAN></INS></SPAN><![endif]><SPAN style="FONT-SIZE: 10pt"><INS 

cite="mailto:srreid" datetime="2002-12-03T13:20">Related Party 

Transactions</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T13:21"><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1321"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" datetime="2002-12-03T13:20"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-ALIGN: justify; mso-list: none; mso-list-ins: srreid 20021203T1320"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:26">Directors</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T13:27">, their</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T13:26"> family members</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T13:27">, or companies controlled by the directors</INS><INS 

cite="mailto:srreid" datetime="2002-12-03T13:26"> of the Company, have lent the 

company funds on various terms and conditions over the last three years as 

follows:<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1328"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" datetime="2002-12-03T13:28"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1330"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:30"><SPAN 

style="mso-spacerun: yes"> </SPAN><o:p></o:p></INS></SPAN></P>

<TABLE 

style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; WIDTH: 504.9pt; BORDER-BOTTOM: medium none; BORDER-COLLAPSE: collapse; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-border-alt: solid windowtext .5pt" 

cellSpacing=0 cellPadding=0 width=673 border=1>

<TBODY>

<TR style="mso-table-inserted: srreid 20021203T1330">

<TD 

style="BORDER-RIGHT: windowtext 0.5pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 0.5pt solid; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: windowtext 0.5pt solid; WIDTH: 3.45in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 0.5pt solid" 

vAlign=top width=331>

<P class=MsoNormal style="TEXT-ALIGN: justify"><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:30"><o:p></o:p></INS></SPAN></P></TD>

<TD 

style="BORDER-RIGHT: windowtext 0.5pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 0.5pt solid; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 85.5pt; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 0.5pt solid; mso-border-left-alt: solid windowtext .5pt" 

vAlign=top width=114>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:31">May 31, 2002</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T13:30"><o:p></o:p></INS></SPAN></P></TD>

<TD 

style="BORDER-RIGHT: windowtext 0.5pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 0.5pt solid; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 85.5pt; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 0.5pt solid; mso-border-left-alt: solid windowtext .5pt" 

vAlign=top width=114>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:31">May 31, 2001</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T13:30"><o:p></o:p></INS></SPAN></P></TD>

<TD 

style="BORDER-RIGHT: windowtext 0.5pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 0.5pt solid; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 85.5pt; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 0.5pt solid; mso-border-left-alt: solid windowtext .5pt" 

vAlign=top width=114>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:31">May 31, 2000</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T13:30"><o:p></o:p></INS></SPAN></P></TD></TR>

<TR style="mso-table-inserted: srreid 20021203T1330">

<TD 

style="BORDER-RIGHT: windowtext 0.5pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: windowtext 0.5pt solid; WIDTH: 3.45in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 0.5pt solid; mso-border-top-alt: solid windowtext .5pt" 

vAlign=top width=331>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:31">Debentures payable, without interest, due 

May</INS><INS cite="mailto:srreid" datetime="2002-12-03T13:33"> </INS><INS 

cite="mailto:srreid" datetime="2002-12-03T13:31">11, 2011, convertible to 

common shares at an exercise price</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T13:33"> of $1.23 at holders discretion; 

unsecured</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T13:30"><o:p></o:p></INS></SPAN></P></TD>

<TD 

style="BORDER-RIGHT: windowtext 0.5pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 85.5pt; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 0.5pt solid; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt" 

vAlign=top width=114>

<P class=MsoNormal 

style="TEXT-ALIGN: justify; mso-list: none; mso-list-ins: srreid 20021203T1333"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:33"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1333"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:33"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1333"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:33"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:33">$5,097,105</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T13:30"><o:p></o:p></INS></SPAN></P></TD>

<TD 

style="BORDER-RIGHT: windowtext 0.5pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 85.5pt; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 0.5pt solid; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt" 

vAlign=top width=114>

<P class=MsoNormal 

style="TEXT-ALIGN: justify; mso-list: none; mso-list-ins: srreid 20021203T1334"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:34"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1334"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:34"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1334"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:34"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:34">$5,442,018</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T13:30"><o:p></o:p></INS></SPAN></P></TD>

<TD 

style="BORDER-RIGHT: windowtext 0.5pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 85.5pt; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 0.5pt solid; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt" 

vAlign=top width=114>

<P class=MsoNormal 

style="TEXT-ALIGN: justify; mso-list: none; mso-list-ins: srreid 20021203T1334"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:34"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1334"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:34"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1334"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:34"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:34">$<SPAN 

style="mso-spacerun: yes">      </SPAN></INS><INS 

cite="mailto:srreid" datetime="2002-12-03T13:37"><SPAN 

style="mso-spacerun: yes">  </SPAN></INS><INS 

cite="mailto:srreid" datetime="2002-12-03T13:34">-<SPAN 

style="mso-spacerun: yes">    </SPAN></INS><INS 

cite="mailto:srreid" 

datetime="2002-12-03T13:30"><o:p></o:p></INS></SPAN></P></TD></TR>

<TR style="mso-table-inserted: srreid 20021203T1334">

<TD 

style="BORDER-RIGHT: windowtext 0.5pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: windowtext 0.5pt solid; WIDTH: 3.45in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 0.5pt solid; mso-border-top-alt: solid windowtext .5pt" 

vAlign=top width=331>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:34">Shareholder loans, </INS><INS 

cite="mailto:srreid" datetime="2002-12-03T13:35">without interest or 

</INS><INS cite="mailto:srreid" datetime="2002-12-03T13:34">fixed terms 

</INS><INS cite="mailto:srreid" datetime="2002-12-03T13:35">of repayment; 

unsecured</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T13:34"><o:p></o:p></INS></SPAN></P></TD>

<TD 

style="BORDER-RIGHT: windowtext 0.5pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 85.5pt; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 0.5pt solid; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt" 

vAlign=top width=114>

<P class=MsoNormal 

style="TEXT-ALIGN: justify; mso-list: none; mso-list-ins: srreid 20021203T1335"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:35"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1333"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:35">$<SPAN style="mso-spacerun: yes">  

</SPAN>546,138</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T13:34"><o:p></o:p></INS></SPAN></P></TD>

<TD 

style="BORDER-RIGHT: windowtext 0.5pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 85.5pt; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 0.5pt solid; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt" 

vAlign=top width=114>

<P class=MsoNormal 

style="TEXT-ALIGN: justify; mso-list: none; mso-list-ins: srreid 20021203T1336"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:36"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1334"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:36">$<SPAN style="mso-spacerun: yes">  

</SPAN>895,893</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T13:34"><o:p></o:p></INS></SPAN></P></TD>

<TD 

style="BORDER-RIGHT: windowtext 0.5pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 85.5pt; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 0.5pt solid; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt" 

vAlign=top width=114>

<P class=MsoNormal 

style="TEXT-ALIGN: justify; mso-list: none; mso-list-ins: srreid 20021203T1336"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:36"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1334"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:36">$6,007,629</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T13:34"><o:p></o:p></INS></SPAN></P></TD></TR></TBODY></TABLE>

<P class=MsoNormal 

style="TEXT-ALIGN: justify; mso-list: none; mso-list-ins: srreid 20021203T1338"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" datetime="2002-12-03T13:38"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1338"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" datetime="2002-12-03T13:38"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="MARGIN-LEFT: 0.75in; TEXT-INDENT: -0.75in; TEXT-ALIGN: justify; tab-stops: list .75in; mso-text-indent-alt: -.75in; mso-list: l18 level1 lfo27; mso-list-ins: srreid 20021203T1338"><![if !supportLists]><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:38">C.<SPAN 

style="FONT: 7pt 'Times New Roman'">                            

</SPAN></INS></SPAN><![endif]><SPAN style="FONT-SIZE: 10pt"><INS 

cite="mailto:srreid" datetime="2002-12-03T13:38">Interests of experts and 

counsel<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="MARGIN-LEFT: 0.25in; TEXT-INDENT: -0.25in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1338"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" datetime="2002-12-03T13:38"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="MARGIN-LEFT: 0.25in; TEXT-INDENT: -0.25in; TEXT-ALIGN: justify; mso-text-indent-alt: -.25in; mso-list: none; mso-list-ins: srreid 20021203T1338"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:38">Not applicable</INS><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B><U><SPAN 

style="FONT-SIZE: 10pt">ITEM 8. FINANCIAL INFORMATION</SPAN></U></B><SPAN 

style="FONT-SIZE: 10pt"><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company's financial statements are stated in Canadian Dollars (CDN$) 

and are prepared in accordance with Canadian Generally Accepted Accounting 

Principles (GAAP), the application of which, in the case of the Company, 

conforms in all material respects for the periods presented with US GAAP, except 

as disclosed in footnotes to the financial statements.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

audited financial statements for the year ended May 31, 2002 as required under 

ITEM #17 are included hereto immediately following the text of this annual 

report. The audit report of KPMG LLP, Independent Auditors, are included herein 

immediately preceding the financial statements.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt">ITEM 9. 

THE OFFER AND LISTING<o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company's common shares were approved for trading on the NASD OTC Bulletin Board 

in the United States, under the symbol "CAAUF" on February 1, 1999.<SPAN 

style="mso-spacerun: yes">  </SPAN>The Company voluntarily de-listed from 

trading on the Vancouver Stock Exchange, now known as the Canadian Venture 

Exchange, effective March 15, 1999.<SPAN style="mso-spacerun: yes">  

</SPAN>The initial public offering was effective, only in Canada, on the 

Vancouver Stock Exchange under the auspices of the British Columbia Securities 

Commission in February 1988 under a former name, “Millennium Resources 

Inc.".<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

high and low sales prices on the OTC Bulletin Board for actual trades of the 

Company's common shares from date of listing is as follows:<SPAN 

style="mso-spacerun: yes">  </SPAN><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt">OTC Bulletin Board - Common Shares Trading 

Activity<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><SPAN 

style="mso-spacerun: yes"> </SPAN><SPAN 

style="mso-tab-count: 8">                                               

</SPAN><SPAN style="mso-spacerun: yes"> </SPAN><o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><SPAN 

style="mso-tab-count: 1">      </SPAN><SPAN 

style="mso-spacerun: yes"> </SPAN><SPAN 

style="mso-tab-count: 6">                                   

</SPAN><SPAN style="mso-spacerun: yes">     </SPAN><SPAN 

style="mso-spacerun: yes">   </SPAN>U.S. 

Dollars<o:p></o:p></SPAN></P>

<P class=MsoNormal><U><SPAN style="FONT-SIZE: 10pt"><SPAN 

style="mso-spacerun: yes"> </SPAN>Period<SPAN 

style="mso-spacerun: yes">                        

</SPAN><SPAN style="mso-tab-count: 1">     </SPAN><SPAN 

style="mso-spacerun: yes">             </SPAN>High<SPAN 

style="mso-spacerun: yes">         

</SPAN>Low<o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="MARGIN-LEFT: 9pt; TEXT-INDENT: -4.5pt"><SPAN 

style="FONT-SIZE: 10pt">Month ended 10/31/02<SPAN 

style="mso-spacerun: yes">                            

</SPAN>$0.60<SPAN style="mso-spacerun: yes">      

</SPAN>$0.28<o:p></o:p></SPAN></P>

<P class=MsoNormal style="MARGIN-LEFT: 9pt; TEXT-INDENT: -4.5pt"><SPAN 

style="FONT-SIZE: 10pt">Month ended 09/30/02<SPAN 

style="mso-spacerun: yes">                            

</SPAN>$0.80<SPAN style="mso-spacerun: yes">      

</SPAN>$0.26<o:p></o:p></SPAN></P>

<P class=MsoNormal style="MARGIN-LEFT: 9pt; TEXT-INDENT: -4.5pt"><SPAN 

style="FONT-SIZE: 10pt">Month ended 08/31/02<SPAN 

style="mso-spacerun: yes">                            

</SPAN>$0.75<SPAN style="mso-spacerun: yes">      

</SPAN>$0.26<o:p></o:p></SPAN></P>

<P class=MsoNormal style="MARGIN-LEFT: 9pt; TEXT-INDENT: -4.5pt"><SPAN 

style="FONT-SIZE: 10pt">Month ended 07/31/02<SPAN 

style="mso-spacerun: yes">                            

</SPAN>$0.50<SPAN style="mso-spacerun: yes">      

</SPAN>$0.20<o:p></o:p></SPAN></P>

<P class=MsoNormal style="MARGIN-LEFT: 9pt; TEXT-INDENT: -4.5pt"><SPAN 

style="FONT-SIZE: 10pt">Month ended 06/30/02<SPAN 

style="mso-spacerun: yes">                            

</SPAN>$0.51<SPAN style="mso-spacerun: yes">      

</SPAN>$0.20<o:p></o:p></SPAN></P>

<P class=MsoNormal style="MARGIN-LEFT: 9pt; TEXT-INDENT: -4.5pt"><SPAN 

style="FONT-SIZE: 10pt">Month ended 05/31/02<SPAN 

style="mso-spacerun: yes">                            

</SPAN>$0.34<SPAN style="mso-spacerun: yes">      

</SPAN>$0.32<o:p></o:p></SPAN></P>

<P class=MsoNormal style="MARGIN-LEFT: 9pt; TEXT-INDENT: -4.5pt"><SPAN 

style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="MARGIN-LEFT: 9pt; TEXT-INDENT: -4.5pt"><SPAN 

style="FONT-SIZE: 10pt">Three months ended 08/31/02<SPAN 

style="mso-tab-count: 4">                    

</SPAN>$0.75<SPAN style="mso-tab-count: 1">      

</SPAN>$0.20<o:p></o:p></SPAN></P>

<P class=MsoNormal style="MARGIN-LEFT: 9pt; TEXT-INDENT: -4.5pt"><SPAN 

style="FONT-SIZE: 10pt">Three months ended 05/31/02<SPAN 

style="mso-tab-count: 4">                    

</SPAN>$0.34<SPAN style="mso-tab-count: 1">      

</SPAN>$0.07<o:p></o:p></SPAN></P>

<P class=MsoNormal style="MARGIN-LEFT: 9pt; TEXT-INDENT: -4.5pt"><SPAN 

style="FONT-SIZE: 10pt">Three months ended 02/28/02<SPAN 

style="mso-tab-count: 4">                    

</SPAN>$0.13<SPAN style="mso-tab-count: 1">      

</SPAN>$0.05<o:p></o:p></SPAN></P>

<P class=MsoNormal style="MARGIN-LEFT: 9pt; TEXT-INDENT: -4.5pt"><SPAN 

style="FONT-SIZE: 10pt">Three months ended 11/30/01<SPAN 

style="mso-tab-count: 4">                    

</SPAN>$0.22<SPAN style="mso-tab-count: 1">      

</SPAN>$0.12<o:p></o:p></SPAN></P>

<P class=MsoNormal style="MARGIN-LEFT: 9pt; TEXT-INDENT: -4.5pt"><SPAN 

style="FONT-SIZE: 10pt">Three months ended 08/31/01<SPAN 

style="mso-tab-count: 4">                    

</SPAN>$0.38<SPAN style="mso-tab-count: 1">      

</SPAN>$0.28<o:p></o:p></SPAN></P>

<P class=MsoNormal style="MARGIN-LEFT: 9pt; TEXT-INDENT: -4.5pt"><SPAN 

style="FONT-SIZE: 10pt">Three months ended 05/31/01<SPAN 

style="mso-tab-count: 4">                    

</SPAN>$0.33<SPAN style="mso-tab-count: 1">      

</SPAN>$0.20<o:p></o:p></SPAN></P>

<P class=MsoNormal style="MARGIN-LEFT: 9pt; TEXT-INDENT: -4.5pt"><SPAN 

style="FONT-SIZE: 10pt">Three months ended 02/28/01<SPAN 

style="mso-tab-count: 4">                    

</SPAN>$0.16<SPAN style="mso-tab-count: 1">      

</SPAN>$0.06<o:p></o:p></SPAN></P>

<P class=MsoNormal style="MARGIN-LEFT: 9pt; TEXT-INDENT: -4.5pt"><SPAN 

style="FONT-SIZE: 10pt">Three months ended 11/30/00<SPAN 

style="mso-tab-count: 4">                    

</SPAN>$0.44<SPAN style="mso-tab-count: 1">      

</SPAN>$0.09<o:p></o:p></SPAN></P>

<P class=MsoNormal style="MARGIN-LEFT: 9pt; TEXT-INDENT: -4.5pt"><SPAN 

style="FONT-SIZE: 10pt">Three months ended 08/31/00<SPAN 

style="mso-tab-count: 4">                    

</SPAN>$0.25<SPAN style="mso-tab-count: 1">      

</SPAN>$0.09<o:p></o:p></SPAN></P>

<P class=MsoNormal style="MARGIN-LEFT: 9pt; TEXT-INDENT: -4.5pt"><SPAN 

style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-INDENT: 4.5pt"><SPAN style="FONT-SIZE: 10pt">Year 

ended 05/31/02<SPAN 

style="mso-spacerun: yes">                             

</SPAN>$0.38<SPAN style="mso-spacerun: yes">      

</SPAN>$0.05 <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-INDENT: 4.5pt"><SPAN style="FONT-SIZE: 10pt">Year 

ended 05/31/01<SPAN 

style="mso-spacerun: yes">                             

</SPAN>$0.44<SPAN style="mso-spacerun: yes">      

</SPAN>$0.06 <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-INDENT: 4.5pt"><SPAN style="FONT-SIZE: 10pt">Year 

ended 05/31/00<SPAN 

style="mso-spacerun: yes">       </SPAN><SPAN 

style="mso-spacerun: yes">                      </SPAN>$0.44<SPAN 

style="mso-spacerun: yes">      

</SPAN>$0.05<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-INDENT: 4.5pt"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt">Canadian Venture Exchange - Common Shares Trading 

Activity<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><SPAN 

style="mso-spacerun: yes"> </SPAN><SPAN 

style="mso-tab-count: 8">                                               

</SPAN><SPAN style="mso-spacerun: yes"> </SPAN><o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><SPAN 

style="mso-tab-count: 1">      </SPAN><SPAN 

style="mso-spacerun: yes"> </SPAN><SPAN 

style="mso-tab-count: 6">                                   

</SPAN><SPAN style="mso-spacerun: yes">      

</SPAN>Canadian Dollars<o:p></o:p></SPAN></P>

<P class=MsoNormal><U><SPAN style="FONT-SIZE: 10pt"><SPAN 

style="mso-spacerun: yes"> </SPAN>Period<SPAN 

style="mso-spacerun: yes">                        

</SPAN><SPAN style="mso-tab-count: 1">     </SPAN><SPAN 

style="mso-spacerun: yes">             </SPAN>High<SPAN 

style="mso-spacerun: yes">         

</SPAN>Low<o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-INDENT: 4.5pt"><SPAN style="FONT-SIZE: 10pt">Year 

ended 05/31/99<SPAN 

style="mso-spacerun: yes">                             

</SPAN>$2.50<SPAN style="mso-spacerun: yes">      

</SPAN>$0.71 <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-INDENT: 4.5pt"><SPAN style="FONT-SIZE: 10pt">Year 

ended 05/31/98<SPAN 

style="mso-spacerun: yes">                             

</SPAN>$9.00<SPAN style="mso-spacerun: yes">      

</SPAN>$2.00<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-INDENT: 4.5pt"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company's common shares are issued in registered form and the following 

information is taken from the records of CIBC Mellon Trust Company, located in 

Vancouver, British Columbia, Canada, the registrar and transfer agent for the 

common shares.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">On 

10/31/02, the shareholders' list for the Company's common shares showed 341 

registered shareholders and 10,744,218 common shares outstanding. 38 of these 

shareholders were U.S. residents, holding 1,958,967 shares representing 

18.2% of the issued and outstanding common shares.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company has researched the indirect holding by depository institutions and 

estimates that there are 38 "holders of record" resident in the United States, 

holding the aforementioned 1,958,967 common shares.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Based on this research and other research into the 

indirect holdings of other financial institutions, the Company believes that it 

has in excess of 750 beneficial owners of its common 

shares.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company's common shares are not registered to trade in the United States in the 

form of American Depository Receipts (ADR's) or similar 

certificates.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company is unaware of any active market in the United States for its common 

shares.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company has not declared any dividends for the last five fiscal years 

and does not plan to declare dividends in the foreseeable 

future.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt">ITEM 10. 

ADDITIONAL INFORMATION<INS cite="mailto:srreid" 

datetime="2002-12-03T13:40"><U><o:p></o:p></U></INS></SPAN></U></B></P>

<P class=MsoNormal 

style="TEXT-ALIGN: justify; mso-list: none; mso-list-ins: srreid 20021203T1340"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><INS 

cite="mailto:srreid" 

datetime="2002-12-03T13:40"><U><![if !supportEmptyParas]> <![endif]><o:p></o:p></U></INS></SPAN></U></B></P>

<P class=MsoNormal 

style="MARGIN-LEFT: 0.5in; TEXT-INDENT: -0.5in; TEXT-ALIGN: justify; tab-stops: list .5in; mso-text-indent-alt: -.5in; mso-list: l9 level1 lfo32; mso-list-ins: srreid 20021203T1340"><![if !supportLists]><B 

style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 10pt"><INS 

cite="mailto:srreid" datetime="2002-12-03T13:40">A.<SPAN 

style="FONT: 7pt 'Times New Roman'">                

</SPAN></INS></SPAN></B><![endif]><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><INS 

cite="mailto:srreid" datetime="2002-12-03T13:40"><U>Share 

Capital<o:p></o:p></U></INS></SPAN></U></B></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1340"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><INS 

cite="mailto:srreid" 

datetime="2002-12-03T13:40"><U><![if !supportEmptyParas]> <![endif]><o:p></o:p></U></INS></SPAN></U></B></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1340"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:40">The authorized capital of the Registrant is 

100,000,000 common shares without par value of which 10,744,218 were issued and 

outstanding at 10/31/02.<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1340"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" datetime="2002-12-03T13:40"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1340"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:40">All of the authorized common shares of the 

Registrant are of the same class and, once issued, rank equally as to dividends, 

voting powers, and participation in assets.<SPAN 

style="mso-spacerun: yes">  </SPAN>Holders of common shares are entitled to 

one vote for each share held of record in all matters to be acted upon by the 

shareholders.<SPAN style="mso-spacerun: yes">  </SPAN> Holders of 

common shares are entitled to receive such dividends as may be declared from 

time to time by the Board of Directors, in its discretion, out of funds legally 

available therefore.<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1340"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" datetime="2002-12-03T13:40"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1340"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:40">Upon liquidation, dissolution or winding up of the 

Registrant, holders of common shares are entitled to receive pro rata the assets 

of the Registrant, if any, remaining after payments of all debts and 

liabilities.<SPAN style="mso-spacerun: yes">  </SPAN>No shares have been 

issued subject to call or assessment.<SPAN style="mso-spacerun: yes">  

</SPAN>There are no pre-emptive or conversion rights and no provisions for 

redemption or purchase for cancellation, surrender, or sinking or purchase 

funds.<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1340"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" datetime="2002-12-03T13:40"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1340"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:40">The Company is not aware of any Restrictions or 

limitations on the rights of non-resident or foreign owners to hold, vote, or 

receive remittance on the Registrant's securities, other than those discussed in 

"Exchange Controls and Other Limitations Affecting Security 

Holders".<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1340"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" datetime="2002-12-03T13:40"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1340"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:40">There are no restrictions on the repurchase or 

redemption of common shares of the Registrant while there is any arrearage in 

the payment of dividends or sinking fund 

installments.<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1340"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" datetime="2002-12-03T13:40"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1340"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:40">Provisions as to the modification, amendment or 

variation of such shareholder rights or provisions are contained in the <I 

style="mso-bidi-font-style: normal">Company Act</I> of British Columbia.<SPAN 

style="mso-spacerun: yes">  </SPAN>Unless the <I 

style="mso-bidi-font-style: normal">Company Act</I> or the Registrant's Articles 

or memorandum otherwise provide, any action to be taken by a resolution of the 

members may be taken by an ordinary resolution or by a vote of a majority or 

more of the shares represented at the shareholders' 

meeting.<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-ALIGN: justify; mso-list: none; mso-list-ins: srreid 20021203T1340"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" datetime="2002-12-03T13:40"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1340"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:40">The Registrant's Articles and the <I 

style="mso-bidi-font-style: normal">B.C. Company Act </I>contain provisions, 

which require a "special resolution" for effecting certain corporate 

actions.<SPAN style="mso-spacerun: yes">  </SPAN>Such a "special 

resolution" requires a three-quarters vote of shareholders rather than a simple 

majority for passage.<SPAN style="mso-spacerun: yes">  </SPAN>The principle 

corporate actions that require a "special resolution" 

include:<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1340"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" datetime="2002-12-03T13:40"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1340"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:40">a.<SPAN style="mso-spacerun: yes">  

</SPAN>Transferring Company's jurisdiction from British 

Columbia<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1340"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:40">    to another 

jurisdiction;<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-ALIGN: justify; mso-list: none; mso-list-ins: srreid 20021203T1340"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:40">b.<SPAN style="mso-spacerun: yes">  

</SPAN>Giving material financial assistance to executive 

officers<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1340"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:40"><SPAN style="mso-spacerun: yes">    

</SPAN>and/or directors;<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1340"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:40">c.<SPAN style="mso-spacerun: yes">  

</SPAN>Material conflicts of interest by Directors;<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1340"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:40">d.<SPAN style="mso-spacerun: yes">  

</SPAN>Disposing of all or substantially all of the 

Company's<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1340"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:40"><SPAN style="mso-spacerun: yes">    

</SPAN>undertakings;<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-ALIGN: justify; mso-list: none; mso-list-ins: srreid 20021203T1340"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:40">e.<SPAN style="mso-spacerun: yes">  

</SPAN>Removing a Director before the expiration of his term 

of<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1340"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:40"><SPAN style="mso-spacerun: yes">    

</SPAN>office;<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1340"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:40">f.<SPAN style="mso-spacerun: yes">  

</SPAN>Certain alterations of share capital;<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1340"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:40"><SPAN style="mso-spacerun: yes">    

</SPAN>(1) increasing the number of authorized 

shares;<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1340"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:40"><SPAN style="mso-spacerun: yes">    

</SPAN>(2) subdivision, consolidation and/or changes in 

shares;<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-ALIGN: justify; mso-list: none; mso-list-ins: srreid 20021203T1340"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:40"><SPAN style="mso-spacerun: yes">    

</SPAN>(3) reduction in capital<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1340"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:40">g.<SPAN style="mso-spacerun: yes">  

</SPAN>Changing the Company name;<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1340"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:40">h.<SPAN style="mso-spacerun: yes">  

</SPAN>Altering any restrictions on the Company's business; 

and<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1340"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:40">i.<SPAN style="mso-spacerun: yes">  

</SPAN>Amalgamations with another company.<o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1340"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal 

style="MARGIN-LEFT: 0.5in; TEXT-INDENT: -0.5in; TEXT-ALIGN: justify; tab-stops: list .5in; mso-text-indent-alt: -.5in; mso-list: l9 level1 lfo32; mso-list-ins: srreid 20021203T1342"><![if !supportLists]><B 

style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 10pt"><INS 

cite="mailto:srreid" datetime="2002-12-03T13:42">B.<SPAN 

style="FONT: 7pt 'Times New Roman'">                

</SPAN></INS></SPAN></B><![endif]><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><INS 

cite="mailto:srreid" datetime="2002-12-03T13:41"><U>Memorandum and 

</U></INS><INS cite="mailto:srreid" datetime="2002-12-03T13:42"><U>articles of 

association.<o:p></o:p></U></INS></SPAN></U></B></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1342"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><INS 

cite="mailto:srreid" 

datetime="2002-12-03T13:42"><U><![if !supportEmptyParas]> <![endif]><o:p></o:p></U></INS></SPAN></U></B></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1342"><SPAN 

style="FONT-SIZE: 10pt; mso-bidi-font-weight: bold"><SPAN 

style="mso-prop-change: srreid 20021203T1353"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:42"><SPAN 

style="mso-prop-change: srreid 20021203T1353">Incorporate</SPAN></INS><SPAN 

style="mso-prop-change: srreid 20021203T1353"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:53"><SPAN 

style="mso-prop-change: srreid 20021203T1353">d</SPAN></INS><SPAN 

style="mso-prop-change: srreid 20021203T1353"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:42"><SPAN style="mso-prop-change: srreid 20021203T1353"> 

by reference</SPAN></INS><INS cite="mailto:srreid" datetime="2002-12-03T13:53"> 

– see Item 19. </INS><INS cite="mailto:srreid" 

datetime="2002-12-03T13:54">“</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T13:53">Exhibits</INS><INS cite="mailto:srreid" 

datetime="2002-12-03T13:54">”</INS><SPAN 

style="mso-prop-change: srreid 20021203T1353"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:42"><SPAN 

style="mso-prop-change: srreid 20021203T1353">.<SPAN 

style="mso-prop-change: srreid 20021203T1353"><o:p></o:p></SPAN></SPAN></INS></SPAN></SPAN></SPAN></SPAN></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1342"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><INS 

cite="mailto:srreid" 

datetime="2002-12-03T13:42"><U><![if !supportEmptyParas]> <![endif]><o:p></o:p></U></INS></SPAN></U></B></P>

<P class=MsoNormal 

style="MARGIN-LEFT: 0.5in; TEXT-INDENT: -0.5in; TEXT-ALIGN: justify; tab-stops: list .5in; mso-text-indent-alt: -.5in; mso-list: l9 level1 lfo32; mso-list-ins: srreid 20021203T1343"><![if !supportLists]><B 

style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 10pt"><INS 

cite="mailto:srreid" datetime="2002-12-03T13:43">C.<SPAN 

style="FONT: 7pt 'Times New Roman'">                

</SPAN></INS></SPAN></B><![endif]><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><INS 

cite="mailto:srreid" datetime="2002-12-03T13:42"><U>Material 

contracts.</U></INS><INS cite="mailto:srreid" 

datetime="2002-12-03T13:43"><U><o:p></o:p></U></INS></SPAN></U></B></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1343"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><INS 

cite="mailto:srreid" 

datetime="2002-12-03T13:43"><U><![if !supportEmptyParas]> <![endif]><o:p></o:p></U></INS></SPAN></U></B></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1343"><SPAN 

style="FONT-SIZE: 10pt; mso-bidi-font-weight: bold"><SPAN 

style="mso-prop-change: srreid 20021203T1354"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:43"><SPAN 

style="mso-prop-change: srreid 20021203T1354">Not applicable.</SPAN></INS><SPAN 

style="mso-prop-change: srreid 20021203T1354"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:42"><SPAN 

style="mso-prop-change: srreid 20021203T1354"><o:p></o:p></SPAN></INS></SPAN></SPAN></SPAN></P>

<P class=MsoNormal 

style="MARGIN-LEFT: 0.25in; TEXT-ALIGN: justify; mso-list: none; mso-list-ins: srreid 20021203T1343"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><INS 

cite="mailto:srreid" 

datetime="2002-12-03T13:42"><U><![if !supportEmptyParas]> <![endif]><o:p></o:p></U></INS></SPAN></U></B></P>

<P class=MsoNormal 

style="MARGIN-LEFT: 0.25in; TEXT-INDENT: -0.25in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1342"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><INS 

cite="mailto:srreid" datetime="2002-12-03T13:41"><U>D.<SPAN 

style="mso-spacerun: yes">    </SPAN></U></INS>Exchange Controls 

and Other Limitations Affecting Security Holders<o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Investment Canada Act (the “ICA”), which became effective on 6/30/85, regulates 

the acquisition by non-Canadians of control of a Canadian business 

enterprise.<SPAN style="mso-spacerun: yes">  </SPAN>In effect, the ICA 

required review by Investment Canada, the agency which administers the ICA, and 

approval by the Canadian government in the case of an acquisition of control of 

a Canadian business by a non-Canadian (other than a “NAFTA investor” as defined 

in the ICA) where:<SPAN style="mso-spacerun: yes">  </SPAN>(i) in the case 

of a direct acquisition<SPAN style="mso-spacerun: yes">  </SPAN>(for 

example, through a share purchase or asset purchase), the assets of the business 

are $5 million or more in value; or (ii) in<SPAN 

style="mso-spacerun: yes">  </SPAN>the<SPAN 

style="mso-spacerun: yes">  </SPAN>case<SPAN 

style="mso-spacerun: yes">  </SPAN>of an indirect<SPAN 

style="mso-spacerun: yes">  </SPAN>acquisition<SPAN 

style="mso-spacerun: yes">  </SPAN>(for<SPAN 

style="mso-spacerun: yes">  </SPAN>example,<SPAN 

style="mso-spacerun: yes">  </SPAN>the acquisition<SPAN 

style="mso-spacerun: yes">  </SPAN>of<SPAN style="mso-spacerun: yes">  

</SPAN>the foreign parent of the<SPAN style="mso-spacerun: yes">  

</SPAN>Canadian <SPAN style="mso-spacerun: yes"> </SPAN>business) 

where<SPAN style="mso-spacerun: yes">  </SPAN>the Canadian business has 

assets of $50 million or<SPAN style="mso-spacerun: yes">  </SPAN>more 

in<SPAN style="mso-spacerun: yes">  </SPAN>value or if the Canadian 

business represents more than<SPAN style="mso-spacerun: yes">  </SPAN>50% 

of<SPAN style="mso-spacerun: yes">  </SPAN>the assets of the original group 

and the Canadian<SPAN style="mso-spacerun: yes">  </SPAN>business has 

assets of $5 million or more in value.<SPAN style="mso-spacerun: yes">  

</SPAN><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Review and approval are also required for acquisition or 

establishment of a new business in areas concerning “Canada’s cultural heritage 

or national identity” such as book publishing, film production and distribution, 

television and radio, production and distribution of<SPAN 

style="mso-spacerun: yes">  </SPAN>music, and the oil and natural gas 

industry, regardless<SPAN style="mso-spacerun: yes">  </SPAN>of the size of 

the investment.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">In 

the context of the Company, in essence, three methods of acquiring control of a 

Canadian business are regulated by the ICA:<SPAN 

style="mso-spacerun: yes">  </SPAN>(i) the acquisition of all or 

substantially all of the assets used in carrying on the Canadian business;<SPAN 

style="mso-spacerun: yes">  </SPAN>(ii) the acquisition, directly or 

indirectly, of voting shares of a Canadian corporation carrying on the Canadian 

business;<SPAN style="mso-spacerun: yes">  </SPAN>(iii) the acquisition of 

voting shares of an entity which controls, directly or indirectly, another 

entity carrying on a Canadian business.<SPAN style="mso-spacerun: yes">  

</SPAN>An acquisition of a majority of the voting interests of an<SPAN 

style="mso-spacerun: yes">  </SPAN>entity,<SPAN 

style="mso-spacerun: yes">  </SPAN>including a corporation, is deemed<SPAN 

style="mso-spacerun: yes">  </SPAN>to<SPAN style="mso-spacerun: yes">  

</SPAN>be<SPAN style="mso-spacerun: yes">  </SPAN>an acquisition<SPAN 

style="mso-spacerun: yes">  </SPAN>of control under the ICA.<SPAN 

style="mso-spacerun: yes">  </SPAN>An acquisition of less than one-third of 

the voting shares of a corporation is deemed not to be an acquisition of 

control.<SPAN style="mso-spacerun: yes">  </SPAN>An acquisition of less 

than a majority, but one-third or more, of the voting shares of a corporation is 

presumed to be an acquisition of control unless<SPAN 

style="mso-spacerun: yes">  </SPAN>it<SPAN style="mso-spacerun: yes">  

</SPAN>can<SPAN style="mso-spacerun: yes">  </SPAN>be established that<SPAN 

style="mso-spacerun: yes">  </SPAN>on<SPAN style="mso-spacerun: yes">  

</SPAN>the<SPAN style="mso-spacerun: yes">  </SPAN>acquisition<SPAN 

style="mso-spacerun: yes">  </SPAN>the corporation is not, in fact, 

controlled by the acquirer through the<SPAN style="mso-spacerun: yes">  

</SPAN>ownership<SPAN style="mso-spacerun: yes">  </SPAN>of voting 

shares.<SPAN style="mso-spacerun: yes">   </SPAN>For partnerships, 

trusts, joint ventures or other unincorporated entities, an acquisition of less 

than a majority of the voting interests is deemed not to be an acquisition of 

control.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">In<SPAN style="mso-spacerun: yes">  </SPAN>1988, 

the ICA was amended pursuant to the Free Trade Agreement dated 1/2/88 between 

Canada and the United States to relax the restriction of the ICA.<SPAN 

style="mso-spacerun: yes">  </SPAN>As a result of these amendments, except 

where the Canadian business is in the cultural, oil and gas, uranium, financial 

services or transportation sectors, the threshold for direct acquisition of 

control by U.S. investors and other foreign investors acquiring control of a 

Canadian business from U.S. investors has been raised from<SPAN 

style="mso-spacerun: yes">  </SPAN>$5 million to $150 million of gross 

assets, and indirect acquisitions are not reviewable.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">In 

addition to the foregoing, the ICA requires that all other acquisitions of 

control of Canadian businesses by non-Canadians are subject to formal 

notification to the Canadian government.<SPAN style="mso-spacerun: yes">  

</SPAN>These provisions require a foreign investor to give notice in the 

required form, which notices are for information, as opposed to review, 

purposes.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN 

style="FONT-SIZE: 10pt">Taxation<o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

following summary of the material Canadian federal income tax considerations 

generally applicable in respect of the common shares reflects the Company’s 

opinion, based on tax advice provided by BDO Dunwoody, Chartered Accountants, 

Calgary, Alberta, Canada and BDO Seidman, Denver, Colorado, USA.<SPAN 

style="mso-spacerun: yes">  </SPAN>The tax consequences to any particular 

holder of common shares will vary according to the status of that holder as an 

individual, trust, corporation or member of a partnership, the jurisdiction in 

which that holder is subject to taxation, the place where that holder is 

resident and, generally, according to that holder’s particular 

circumstances.<SPAN style="mso-spacerun: yes">  </SPAN>This summary is 

applicable only to holders who are resident in the United States, have never 

been resident in Canada, deal at arm’s length with the Company, hold their 

common shares as capital property and who will not use or hold the common shares 

in carrying on business in Canada.<SPAN style="mso-spacerun: yes">  

</SPAN>Special rules, which are not discussed in this summary, may apply to a 

United States holder that is an issuer that carries on business in Canada and 

elsewhere.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">This summary is based upon the provisions of the Income 

Tax Act of Canada and the regulations thereunder (collectively, the “Tax Act, or 

ITA”) and the Canada-United States Tax Convention as amended by the Protocols 

thereto (the “Tax Convention”) as at the date of the Registration Statement and 

the current administrative practices of Revenue Canada, Customs, Excise and 

Taxation.<SPAN style="mso-spacerun: yes">  </SPAN>This summary does not 

take into account Canadian provincial income tax 

consequences.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">This summary is not exhaustive of all possible income 

tax consequences.<SPAN style="mso-spacerun: yes">  </SPAN>It is not 

intended as legal or tax advice to any particular holder of common stock and 

should not be so construed.<SPAN style="mso-spacerun: yes">  </SPAN>Each 

holder should consult his own tax advisor with respect to the income tax 

consequences applicable to him in his own particular 

circumstances.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">North American Free Trade Agreement 

(Canada)<o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Investment Act was amended with the North American Free Trade Agreement<SPAN 

style="mso-spacerun: yes">  </SPAN>(NAFTA) to provide for special review 

thresholds for Americans (including<SPAN style="mso-spacerun: yes">   

</SPAN>“American-controlled “entities” as defined in the Investment Act). Under 

the Investment Act, as amended, an investment in the Registrant’s common shares 

by an American would be reviewable only if it was an investment to acquire 

control of the Registrant and the value of the assets of the Registrant was 

equal to or greater than a specified amount<SPAN 

style="mso-spacerun: yes">  </SPAN>(the<SPAN 

style="mso-spacerun: yes">  </SPAN>“Review Threshold”), which increases in 

stages.<SPAN style="mso-spacerun: yes">  </SPAN>The Review Threshold is 

currently<SPAN style="mso-spacerun: yes">  </SPAN>$150 million and remains 

at $150 million in constant 1992 dollars (calculated as prescribed in the 

Investment Act) after 1992.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Disposition of Common Shares</SPAN></U><SPAN 

style="FONT-SIZE: 10pt"><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">If 

a non-resident were to dispose of common shares of the Company to another 

Canadian corporation which deals or is deemed to deal on a non-arm’s length 

basis with the non-resident and which, immediately after the disposition, is 

connected with the Company<SPAN style="mso-spacerun: yes">  </SPAN>(i.e., 

which holds shares representing more than 10% of the voting power and more than 

10% of the market value of all issued and outstanding shares of the Company), 

the amount by which the fair market value of any consideration<SPAN 

style="mso-spacerun: yes">   </SPAN>(other than any<SPAN 

style="mso-spacerun: yes">  </SPAN>shares<SPAN 

style="mso-spacerun: yes">  </SPAN>of the purchaser corporation)<SPAN 

style="mso-spacerun: yes">  </SPAN>exceeds the paid-up capital of the<SPAN 

style="mso-spacerun: yes">  </SPAN>common shares sold will be deemed to be 

taxable as a dividend paid<SPAN style="mso-spacerun: yes">  </SPAN>by<SPAN 

style="mso-spacerun: yes">  </SPAN>the purchasing corporation, either 

immediately or<SPAN style="mso-spacerun: yes">  </SPAN>eventually<SPAN 

style="mso-spacerun: yes">  </SPAN>by means<SPAN 

style="mso-spacerun: yes">  </SPAN>of a deduction in computing the paid-up 

capital<SPAN style="mso-spacerun: yes">  </SPAN>of<SPAN 

style="mso-spacerun: yes">  </SPAN>the purchasing<SPAN 

style="mso-spacerun: yes">  </SPAN>corporation,<SPAN 

style="mso-spacerun: yes">  </SPAN>and subject to withholding<SPAN 

style="mso-spacerun: yes">  </SPAN>taxes<SPAN 

style="mso-spacerun: yes">  </SPAN>as<SPAN style="mso-spacerun: yes">  

</SPAN>described below.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Under the Tax Act, a gain from the sale of common shares 

by a non-resident will not be subject to Canadian tax, provided the shareholder 

(and/or persons who do not deal at arm’s length with the shareholder) have not 

held a “substantial interest” in the Company<SPAN 

style="mso-spacerun: yes">  </SPAN>(25% or more of the shares of any class 

of the Company’s stock) at any time in the five years preceding the 

disposition.<SPAN style="mso-spacerun: yes">  </SPAN>Generally, the Tax 

Convention will exempt from Canadian taxation any capital gain realized by a 

resident of the United States, provided that the value of the common shares is 

not derived principally from real property situated in 

Canada.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Dividend</SPAN></U><SPAN 

style="FONT-SIZE: 10pt"><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">In 

the case of any dividends paid to non-residents, the Canadian tax is withheld by 

the Company, which remits only the net amount to the shareholder.<SPAN 

style="mso-spacerun: yes">  </SPAN>By virtue of Article X of the Tax 

Convention, the rate of tax on dividends paid to residents of the United States 

is generally limited to 15% of the gross dividend (or 5% in the case of certain 

corporate shareholders owning at least 10% of the Company’s voting shares).<SPAN 

style="mso-spacerun: yes">   </SPAN>In the absence of the Tax 

Convention provisions, the rate of Canadian withholding tax imposed on 

non-residents is 25% of the gross dividend.<SPAN 

style="mso-spacerun: yes">   </SPAN><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Stock dividends received by non-residents from the 

Company are taxable by Canada as ordinary dividends and therefore the 

withholding tax rates will be applicable.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Where a holder disposes of common shares to the 

Company<SPAN style="mso-spacerun: yes">  </SPAN>(unless the Company 

acquired the common shares in the open market in the manner in which shares 

would normally be purchased by any member of the public), this will result in a 

deemed dividend to the U.S. holder equal to the amount by which the 

consideration paid by the Company exceeds the paid-up capital of such 

stock.<SPAN style="mso-spacerun: yes">  </SPAN>The amount of such dividend 

will be subject to withholding tax as described above.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Capital Gains</SPAN></U><SPAN 

style="FONT-SIZE: 10pt"><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">A 

non-resident of Canada is not subject to tax under the ITA in respect of a 

capital gain realized upon the disposition of a share of a class that is listed 

on a prescribed stock exchange unless the share represents “taxable Canadian 

property” to the holder thereof.<SPAN style="mso-spacerun: yes">  </SPAN>A 

common share of the Company will be taxable Canadian property to a non-resident 

holder if, at any time during the period of five years immediately preceding the 

disposition, the non-resident holder, persons with whom the non-resident holder 

did not deal at arm’s length, or the non-resident holder and persons with whom 

he/she did not deal at arm’s length owned 25% or more of the issued shares of 

any class or series of the Company.<SPAN style="mso-spacerun: yes">  

</SPAN>In the case of a non-resident holder to whom shares of the Company 

represent taxable Canadian property and who is resident in the United States, no 

Canadian tax will be payable on a capital gain realized on such shares by reason 

of the Tax <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Convention unless the value of such shares is derived 

principally from real property situated in Canada or the non-resident holder 

previously held the shares while resident in Canada.<SPAN 

style="mso-spacerun: yes">  </SPAN>The Company believes that the value of 

its common shares is derived from real property situated outside 

Canada.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Certain United States Federal Income Tax 

Consequences<o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

following is a discussion of certain possible United States Federal income tax 

consequences, under the law, generally applicable to a U.S. Holder (as defined 

below) of common shares of the Company.<SPAN style="mso-spacerun: yes">  

</SPAN>This discussion does not address all potentially relevant Federal income 

tax matters and it does not address consequences peculiar to persons subject to 

special provisions of Federal income tax law, such as those described below as 

excluded from the definition of a U.S. Holder. In addition, this discussion does 

not cover any state, local or foreign tax consequences.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

following discussion is based upon the sections of the Internal Revenue Code of 

1986, as amended (“the Code”), Treasury Regulations,<SPAN 

style="mso-spacerun: yes">  </SPAN>published<SPAN 

style="mso-spacerun: yes">  </SPAN>Internal<SPAN 

style="mso-spacerun: yes">  </SPAN>Revenue<SPAN 

style="mso-spacerun: yes">   </SPAN>Service (“IRS”) rulings, published 

administrative positions of the<SPAN style="mso-spacerun: yes">  </SPAN>IRS 

and<SPAN style="mso-spacerun: yes">  </SPAN>court decisions that are 

currently applicable, any or<SPAN style="mso-spacerun: yes">  </SPAN>all of 

which could be materially and adversely changed, possibly on a retroactive 

basis, at any time.<SPAN style="mso-spacerun: yes">  </SPAN>In addition, 

the discussion does not consider the potential effects, both adverse and 

beneficial, of recently proposed legislation which, if enacted, could be 

applied, possibly on a retroactive basis, at any time.<SPAN 

style="mso-spacerun: yes">  </SPAN>The following discussion is for general 

information only and is not intended to be, nor should it be construed to be, 

legal or tax advice to any holder or prospective holder of common shares of the 

Company and no opinion or representation with respect to the United States 

Federal income tax consequences to any such holder or prospective holder is 

made.<SPAN style="mso-spacerun: yes">  </SPAN>Accordingly, holders and 

prospective holders<SPAN style="mso-spacerun: yes">  </SPAN>of common 

shares of<SPAN style="mso-spacerun: yes">  </SPAN>the<SPAN 

style="mso-spacerun: yes">  </SPAN>Company<SPAN 

style="mso-spacerun: yes">  </SPAN>should consult their own tax advisors 

about the federal, state, local, and<SPAN style="mso-spacerun: yes">   

</SPAN>foreign<SPAN style="mso-spacerun: yes">  </SPAN>tax<SPAN 

style="mso-spacerun: yes">  </SPAN>consequences<SPAN 

style="mso-spacerun: yes">  </SPAN>of<SPAN style="mso-spacerun: yes">  

</SPAN>purchasing,<SPAN style="mso-spacerun: yes">  </SPAN>owning<SPAN 

style="mso-spacerun: yes">   </SPAN>and disposing of common shares of 

the Company.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">U.S. Holders<o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">As 

used herein, a (“U.S. Holder”) includes a holder of common shares of the Company 

who is a citizen or resident of the United States, a corporation created or 

organized in or under the laws of the United States or of any political 

subdivision thereof and any other person or entity whose ownership of common 

shares of the Company is effectively connected with the conduct of a trade or 

business in the United States.<SPAN style="mso-spacerun: yes">   

</SPAN>A<SPAN style="mso-spacerun: yes">  </SPAN>U.S. Holder<SPAN 

style="mso-spacerun: yes">  </SPAN>does not include persons subject to 

special<SPAN style="mso-spacerun: yes">  </SPAN>provisions of<SPAN 

style="mso-spacerun: yes">  </SPAN>Federal income tax law, such as<SPAN 

style="mso-spacerun: yes">  </SPAN>tax-exempt<SPAN 

style="mso-spacerun: yes">  </SPAN>organizations, qualified<SPAN 

style="mso-spacerun: yes">  </SPAN>retirement plans, financial 

institutions,<SPAN style="mso-spacerun: yes">  </SPAN>insurance companies, 

real estate investment trusts, regulated<SPAN style="mso-spacerun: yes">  

</SPAN>investment companies,<SPAN style="mso-spacerun: yes">  

</SPAN>broker-dealers, non-resident alien<SPAN style="mso-spacerun: yes">  

</SPAN>individuals<SPAN style="mso-spacerun: yes">  </SPAN>or foreign<SPAN 

style="mso-spacerun: yes">  </SPAN>corporations<SPAN 

style="mso-spacerun: yes">  </SPAN>whose ownership of common shares<SPAN 

style="mso-spacerun: yes">  </SPAN>of<SPAN style="mso-spacerun: yes">  

</SPAN>the Company<SPAN style="mso-spacerun: yes">  </SPAN>is<SPAN 

style="mso-spacerun: yes">  </SPAN>not effectively connected with the<SPAN 

style="mso-spacerun: yes">  </SPAN>conduct<SPAN 

style="mso-spacerun: yes">  </SPAN>of<SPAN style="mso-spacerun: yes">  

</SPAN>a trade<SPAN style="mso-spacerun: yes">  </SPAN>or<SPAN 

style="mso-spacerun: yes">  </SPAN>business in the United States and<SPAN 

style="mso-spacerun: yes">  </SPAN>shareholders<SPAN 

style="mso-spacerun: yes">  </SPAN>who acquired <SPAN 

style="mso-spacerun: yes"> </SPAN>their<SPAN 

style="mso-spacerun: yes">  </SPAN>stock through the exercise of<SPAN 

style="mso-spacerun: yes">  </SPAN>employee<SPAN 

style="mso-spacerun: yes">  </SPAN>stock options or otherwise as 

compensation.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Distributions on Common Shares of the 

Company</SPAN></U><SPAN style="FONT-SIZE: 10pt"><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">U.S. Holders receiving dividend distributions (including 

constructive dividends) with respect to common shares of 

the<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Company are required to include in gross income for 

United States Federal income tax purposes the gross amount of such distributions 

to the extent that the Company has current or accumulated earnings and profits, 

without reduction for any Canadian income tax withheld from such 

distributions.<SPAN style="mso-spacerun: yes">  </SPAN>Such Canadian tax 

withheld may be credited, subject to certain limitations, against the U.S. 

Holder’s United States Federal Income tax liability or, alternatively, may be 

deducted in computing the U.S. Holder’s United States Federal taxable income by 

those who itemize deductions.<SPAN style="mso-spacerun: yes">  </SPAN>(See 

more detailed discussion at “Foreign Tax Credit” below).<SPAN 

style="mso-spacerun: yes">  </SPAN>To the extent that distributions exceed 

current or accumulated earnings and profits of the Company, they will be treated 

first as a return of capital up to the U.S. Holder’s adjusted basis in the 

common shares and thereafter as gain from the sale or exchange of the common 

shares.<SPAN style="mso-spacerun: yes">  </SPAN>Preferential tax rates for 

long-term capital gains are applicable to a U.S. Holder which is an individual, 

estate or trust.<SPAN style="mso-spacerun: yes">  </SPAN>There are 

currently no preferential tax rates for long-term capital gains for a U.S. 

Holder which is a corporation.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Dividends paid on the common shares of the Company will 

not generally be eligible for the dividends received deduction provided to 

corporations receiving dividends from certain United States corporations.<SPAN 

style="mso-spacerun: yes">   </SPAN>A U.S. Holder which is a 

corporation may, under certain circumstances, be entitled to a 70% deduction of 

the United States source portion of dividends received from the Company (unless 

the Company qualifies as a “foreign personal holding company” or a<SPAN 

style="mso-spacerun: yes">  </SPAN>“passive foreign investment company”, as 

defined below) if such U.S. Holder owns shares representing at least 10% of the 

voting power and value of the Company.<SPAN style="mso-spacerun: yes">  

</SPAN>The availability of this deduction is subject to several complex 

limitations, which are beyond the scope of this 

discussion.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Foreign Tax Credit</SPAN></U><SPAN 

style="FONT-SIZE: 10pt"><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">A 

U.S. Holder who pays (or has withheld from distributions) Canadian income tax 

with respect to the ownership of common shares of the Company may be entitled, 

at the option of the U.S. Holder, to either a deduction or a tax credit for such 

foreign tax paid or withheld.<SPAN style="mso-spacerun: yes">  

</SPAN>Generally, it will be more advantageous to claim a credit because a 

credit reduces United States Federal income taxes on a dollar-for-dollar basis, 

while a deduction merely reduces the taxpayer’s income subject to tax.<SPAN 

style="mso-spacerun: yes">  </SPAN>This election is made on year-by-year 

basis and applies to all foreign income taxes (or taxes in lieu of income tax) 

paid by (or withheld from) the U.S. Holder during the year.<SPAN 

style="mso-spacerun: yes">  </SPAN><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">There are significant and complex limitations which 

apply to the credit, among which is the general limitation that the credit 

cannot exceed the proportionate share of the U.S. Holder’s United States income 

tax liability that the U.S. Holder’s foreign source income bears to his/her or 

its worldwide taxable income.<SPAN style="mso-spacerun: yes">  </SPAN>In 

the determination of the application of this limitation, the various items of 

income and deduction must be classified into foreign and domestic sources.<SPAN 

style="mso-spacerun: yes">  </SPAN>Complex rules govern this classification 

process.<SPAN style="mso-spacerun: yes">  </SPAN>There are further 

limitations on the foreign tax credit for certain types of income such as 

“passive income”, “high withholding tax interest”, “financial services income”, 

“shipping income”, and certain other classifications of income.<SPAN 

style="mso-spacerun: yes">  </SPAN>The availability of the foreign tax 

credit and the application of the limitations on the credit are fact specific 

and holders and prospective holders of common shares of the Company should 

consult their own tax advisors regarding their individual 

circumstances.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Disposition of Common Shares of the 

Company</SPAN></U><SPAN style="FONT-SIZE: 10pt"><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">A 

U.S.<SPAN style="mso-spacerun: yes">  </SPAN>Holder will recognize gain or 

loss upon the sale of common shares of the Company equal to the difference, if 

any, between<SPAN style="mso-spacerun: yes">  </SPAN>(i) the amount of cash 

plus the fair market value of any property received, and (ii) the shareholder’s 

tax basis in the common shares of the Company.<SPAN 

style="mso-spacerun: yes">  </SPAN>This gain or loss will be capital gain 

or loss if the common shares are capital asset in the hands of the U.S. Holder, 

which will be a short-term or long-term capital gain or loss depending upon the 

holding period of the U.S. Holder.<SPAN style="mso-spacerun: yes">  

</SPAN>Gains and losses are netted and combined according to special rules in 

arriving at the overall capital gain or loss for a particular tax year.<SPAN 

style="mso-spacerun: yes">  </SPAN>Deductions for net capital losses are 

subject to significant limitations.<SPAN style="mso-spacerun: yes">  

</SPAN>For U.S. Holders who are individuals, any unused portion of such net 

capital loss may be carried over to be used in later tax years until such net 

capital loss is thereby exhausted.<SPAN style="mso-spacerun: yes">  

</SPAN>For U.S. Holders who are corporations (other than corporations subject to 

Subchapter S of the Code), an unused net capital loss may be carried back three 

years from the loss year and carried forward five years from the loss year to be 

offset against capital gains until such net capital loss is thereby 

exhausted.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Other considerations<o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">In 

the following four circumstances, the above sections of the discussion may not 

describe the United States Federal income tax consequences resulting from the 

holding and disposition of common shares of the Company.<SPAN 

style="mso-spacerun: yes">  </SPAN>However, on the basis of (a) the number 

of shareholders of its common shares, (b) the majority ownership of its shares 

by Canadian residents, and (c) the majority of its assets are actively managed 

(not passively held), the Company believes that its is neither a “Foreign 

Personal Holding Company”, “Foreign Investment Company”, “Passive Foreign 

Investment Company”, nor a “Controlled Foreign 

Corporation”.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Foreign Personal Holding Company</SPAN></U><SPAN 

style="FONT-SIZE: 10pt"><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">If 

at any time during a taxable year more than 50% of the total combined voting 

power or the total value of the Company outstanding shares is owned, actually or 

constructively, by five or fewer individuals who are citizens or residents of 

the United States and 50% or more of the Company’s gross income for such year 

was derived from certain passive sources (e.g. from dividends received from its 

subsidiaries), the Company would be treated as a “foreign personal holding 

company.”<SPAN style="mso-spacerun: yes">  </SPAN>In that event, U.S. 

Holders that hold common shares of the Company would be required to include in 

gross income for such year their allowable portions of such passive income to 

the extent the Company does not actually distribute such 

income.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Foreign Investment Company</SPAN></U><SPAN 

style="FONT-SIZE: 10pt"><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">If 

50% or more of the combined voting power or total value of the Company 

outstanding shares are held, actually or constructively,<SPAN 

style="mso-spacerun: yes">  </SPAN>by citizens or residents of the 

United<SPAN style="mso-spacerun: yes">  </SPAN>States, United States 

domestic partnerships or corporations, or<SPAN style="mso-spacerun: yes">  

</SPAN>estates or<SPAN style="mso-spacerun: yes">  </SPAN>trusts other than 

foreign estates or trusts (as<SPAN style="mso-spacerun: yes">  

</SPAN>defined<SPAN style="mso-spacerun: yes">  </SPAN>by the<SPAN 

style="mso-spacerun: yes">  </SPAN>Code Section 7701(a)(31)), and the 

Company is found<SPAN style="mso-spacerun: yes">  </SPAN>to<SPAN 

style="mso-spacerun: yes">  </SPAN>be engaged primarily in the business of 

investing, reinvesting,<SPAN style="mso-spacerun: yes">  </SPAN>or trading 

in securities, commodities, or any interest therein,<SPAN 

style="mso-spacerun: yes">  </SPAN>it is<SPAN 

style="mso-spacerun: yes">  </SPAN>possible<SPAN 

style="mso-spacerun: yes">  </SPAN>that the Company might be treated<SPAN 

style="mso-spacerun: yes">  </SPAN>as<SPAN style="mso-spacerun: yes">  

</SPAN>a<SPAN style="mso-spacerun: yes">  </SPAN>“foreign investment<SPAN 

style="mso-spacerun: yes">  </SPAN>company”<SPAN 

style="mso-spacerun: yes">  </SPAN>as defined in Section 1246<SPAN 

style="mso-spacerun: yes">  </SPAN>of<SPAN style="mso-spacerun: yes">  

</SPAN>the<SPAN style="mso-spacerun: yes">  </SPAN>Code, causing<SPAN 

style="mso-spacerun: yes">  </SPAN>all<SPAN 

style="mso-spacerun: yes">  </SPAN>or<SPAN style="mso-spacerun: yes">  

</SPAN>part of any gain realized<SPAN style="mso-spacerun: yes">  

</SPAN>by<SPAN style="mso-spacerun: yes">  </SPAN>a<SPAN 

style="mso-spacerun: yes">  </SPAN>U.S.<SPAN 

style="mso-spacerun: yes">  </SPAN>Holder selling or exchanging common 

shares of the Company to be treated as ordinary income rather than capital 

gains.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Passive Foreign Investment Company</SPAN></U><SPAN 

style="FONT-SIZE: 10pt"><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">As 

a foreign corporation with U.S. Holders, the Company could potentially be 

treated as a passive foreign investment company (“PFIC”), as defined in Section 

1297 of the Code, depending upon the percentage of the Company’s income which is 

passive, or the percentage of the Company’s assets which is held for the purpose 

of producing passive income.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Certain United States income tax legislation contains 

rules governing PFICs, which can have significant tax effects on U.S. 

shareholders of foreign corporations.<SPAN style="mso-spacerun: yes">  

</SPAN>These rules do not apply to non-U.S. shareholders.<SPAN 

style="mso-spacerun: yes">  </SPAN>Section 1297(a) of the Code defines PFIC 

as a corporation that is not formed in the United States and, for any taxable 

year, either (i) 75% or more of its gross income is “passive income”, which 

includes interest, dividends and certain rents and royalties or (ii) the average 

percentage, by fair market value (or, if the company is a controlled foreign 

corporation or makes an election, by adjusted tax basis), of its assets that 

produce or are held for the production of<SPAN style="mso-spacerun: yes">  

</SPAN>“passive income” is 50% or more.<SPAN style="mso-spacerun: yes">  

</SPAN>The taxation of a US shareholder who owns stock in a PFIC is extremely 

complex and is therefore beyond the scope of this discussion.<SPAN 

style="mso-spacerun: yes">  </SPAN>US persons should consult with their own 

tax advisors with regards to the impact of these rules.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN 

style="FONT-SIZE: 10pt">Controlled Foreign Corporation<o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">If 

more than 50% of the voting power of all classes of stock or the total value of 

the stock of the Company is owned, directly or indirectly, by citizens or 

residents of the United States, United States domestic partnerships and 

corporations or estates or trusts other than foreign estates or trusts, each of 

whom own 10% or more of the total combined voting power of all classes of stock 

of the Company or the total value of the stock of (“United States shareholder”), 

the Company could be treated as a controlled foreign corporation” under Subpart 

F of the Code.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">This classification would effect many complex results 

including the required inclusion by such United States shareholders in income of 

their pro rata share: of “Subpart F Income” (as specially defined by the Code) 

of the Company; of the Company’s earnings invested in U.S. property; and of 

earnings invested “excess passive assets” (as specifically defined by the Code). 

The Company, In addition, under Section 1248 of the Code, gain from the sale or 

exchange of common shares of the Company by a U.S. person who is or was a United 

States shareholder (as defined in the Code) at any time during the five years 

period ending with the sale or exchange is treated as ordinary dividend income 

to the extent of earnings and profits of the Company attributable to the stock 

sold or exchanged.<SPAN style="mso-spacerun: yes">  </SPAN>Because of the 

complexity of Subpart F, and because it is not clear that the Company is a 

controlled foreign corporation, a more detailed review of these rules is outside 

of the scope of this discussion.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt">Change in 

Accountants<o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt; mso-bidi-font-weight: bold"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company changed accountants effective 11/20/01 from Evancic Perrault Robertson, 

Certified General Accountants to KPMG LLP, Chartered Accountants. There were no 

reportable disagreements between the Company and its former auditor and there 

have been no reservations, adverse or qualified opinions, or denial of opinion 

contained in the former auditor’s reports.<SPAN style="mso-spacerun: yes">  

</SPAN><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

resignation of the former auditors and the recommendation to appoint the new 

auditors were considered and approved by the Board of 

Directors.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt">ITEM 11. 

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK<SPAN 

class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T14:45">S</DEL></SPAN></SPAN></U></B><SPAN 

style="FONT-SIZE: 10pt; mso-bidi-font-weight: bold"><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt; mso-bidi-font-weight: bold"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">We 

have operations in Canada, the United States and a number of countries outside 

of the United States and therefore we are subject to risks typical of an 

international business including, but not limited to, differing economic 

conditions, changes in political climate, differing tax structures, other 

regulations and restrictions and foreign exchange rate volatility.<SPAN 

style="mso-spacerun: yes">  </SPAN>Accordingly, our future results could be 

materially adversely affected by changes in these or other 

factors.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">Our 

capital and mineral exploration expenditures are substantially in U.S. dollars. 

We incur the majority of our administrative expenses in Canadian dollars.<SPAN 

style="mso-spacerun: yes">  </SPAN>We are exposed, in the normal course of 

business, to foreign currency risks on these expenditures. We have evaluated our 

exposure to these risks and have determined that our only significant foreign 

currency exposure at this time is to the U.S. dollar.<SPAN 

style="mso-spacerun: yes">  </SPAN><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: 'Times New Roman'"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company does not engage in hedging transactions and our gains and losses on 

foreign currency transactions are not significant.<o:p></o:p></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1355"><SPAN 

style="FONT-SIZE: 10pt; mso-bidi-font-weight: bold"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:55"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><INS 

cite="mailto:srreid" datetime="2002-12-03T13:56"><U>ITEM 12.<SPAN 

style="mso-spacerun: yes">    </SPAN>DESCRIPTION OF SECURITIES 

OTHER THAN DEBT SECURITIES</U></INS></SPAN></U></B><SPAN 

style="FONT-SIZE: 10pt; mso-bidi-font-weight: bold"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:56"><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1356"><SPAN 

style="FONT-SIZE: 10pt; mso-bidi-font-weight: bold"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:56"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: srreid 20021203T1356"><SPAN 

style="FONT-SIZE: 10pt; mso-bidi-font-weight: bold"><INS cite="mailto:srreid" 

datetime="2002-12-03T13:56">Not applicable</INS><SPAN 

style="mso-prop-change: srreid 20021203T1356"><SPAN 

style="mso-prop-change: srreid 20021203T1356"><o:p></o:p></SPAN></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><B 

style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></B></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><B 

style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 10pt">PART 

II<o:p></o:p></SPAN></B></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1206"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" datetime="2002-12-03T12:06"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B><U><SPAN 

style="FONT-SIZE: 10pt"><SPAN style="mso-prop-change: pdowad 20021203T1207"><INS 

cite="mailto:pdowad" datetime="2002-12-03T12:06"><U><SPAN 

style="mso-prop-change: pdowad 20021203T1207">ITEM 13.<SPAN 

style="mso-tab-count: 1">    </SPAN><SPAN 

style="mso-prop-change: pdowad 20021203T1207">DEFAULTS, DIVIDEND ARREARAGES AND 

DELINQUENCIES<SPAN 

style="mso-prop-change: pdowad 20021203T1207"><o:p></o:p></SPAN></SPAN></SPAN></U></INS></SPAN></SPAN></U></B></P>

<P class=MsoNormal 

style="TEXT-ALIGN: justify; mso-list: none; mso-list-ins: pdowad 20021203T1207"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" datetime="2002-12-03T12:07"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1207"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" 

datetime="2002-12-03T12:07">Not applicable</INS><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt">ITEM 

14.<SPAN style="mso-spacerun: yes">  </SPAN>MATERIAL MODIFICATIONS TO THE 

RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS<o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company has not materially altered the rights of security holders since the last 

annual report.<SPAN style="mso-spacerun: yes">  </SPAN><SPAN 

class=msoDel><DEL cite="mailto:srreid" datetime="2002-12-03T13:44">A summary of 

the rights of security holders follows.</DEL></SPAN><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" 

datetime="2002-12-03T12:07"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:44">[THIS STUFF BELOW SHOULD – IT SEEMS TO ME – BE IN 

ITEM 10.A]</DEL></SPAN><INS 

datetime="2002-12-03T12:07"><o:p></o:p></INS></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1207"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" datetime="2002-12-03T12:07"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1207"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40">The authorized capital of the Registrant is 

100,000,000 common shares without par value of which 10,744,218 were issued and 

outstanding at 10/31/02.</DEL></SPAN><SPAN class=msoDel><DEL 

cite="mailto:srreid" 

datetime="2002-12-03T13:40"><o:p></o:p></DEL></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><![if !supportEmptyParas]> <![endif]></DEL></SPAN><SPAN 

class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><o:p></o:p></DEL></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40">All of the authorized common shares of the 

Registrant are of the same class and, once issued, rank equally as to dividends, 

voting powers, and participation in assets.<SPAN 

style="mso-spacerun: yes">  </SPAN>Holders of common shares are entitled to 

one vote for each share held of record in all matters to be acted upon by the 

shareholders.<SPAN style="mso-spacerun: yes">  </SPAN> Holders of 

common shares are entitled to receive such dividends as may be declared from 

time to time by the Board of Directors, in its discretion, out of funds legally 

available therefore.</DEL></SPAN><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><o:p></o:p></DEL></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><![if !supportEmptyParas]> <![endif]></DEL></SPAN><SPAN 

class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><o:p></o:p></DEL></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40">Upon liquidation, dissolution or winding up of the 

Registrant, holders of common shares are entitled to receive pro rata the assets 

of the Registrant, if any, remaining after payments of all debts and 

liabilities.<SPAN style="mso-spacerun: yes">  </SPAN>No shares have been 

issued subject to call or assessment.<SPAN style="mso-spacerun: yes">  

</SPAN>There are no pre-emptive or conversion rights and no provisions for 

redemption or purchase for cancellation, surrender, or sinking or purchase 

funds.</DEL></SPAN><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><o:p></o:p></DEL></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><![if !supportEmptyParas]> <![endif]></DEL></SPAN><SPAN 

class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><o:p></o:p></DEL></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40">The Company is not aware of any Restrictions or 

limitations on the rights of non-resident or foreign owners to hold, vote, or 

receive remittance on the Registrant's securities, other than those discussed in 

"Exchange Controls and Other Limitations Affecting Security 

Holders".</DEL></SPAN><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><o:p></o:p></DEL></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><![if !supportEmptyParas]> <![endif]></DEL></SPAN><SPAN 

class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><o:p></o:p></DEL></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40">There are no restrictions on the repurchase or 

redemption of common shares of the Registrant while there is any arrearage in 

the payment of dividends or sinking fund installments.</DEL></SPAN><SPAN 

class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><o:p></o:p></DEL></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><![if !supportEmptyParas]> <![endif]></DEL></SPAN><SPAN 

class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><o:p></o:p></DEL></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40">Provisions as to the modification, amendment or 

variation of such shareholder rights or provisions are contained in the 

</DEL></SPAN><I style="mso-bidi-font-style: normal"><SPAN class=msoDel><DEL 

cite="mailto:srreid" datetime="2002-12-03T13:40">Company 

Act</DEL></SPAN></I><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"> of British Columbia.<SPAN 

style="mso-spacerun: yes">  </SPAN>Unless the </DEL></SPAN><I 

style="mso-bidi-font-style: normal"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40">Company Act</DEL></SPAN></I><SPAN class=msoDel><DEL 

cite="mailto:srreid" datetime="2002-12-03T13:40"> or the Registrant's Articles 

or memorandum otherwise provide, any action to be taken by a resolution of the 

members may be taken by an ordinary resolution or by a vote of a majority or 

more of the shares represented at the shareholders' meeting.</DEL></SPAN><SPAN 

class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><o:p></o:p></DEL></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><![if !supportEmptyParas]> <![endif]></DEL></SPAN><SPAN 

class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><o:p></o:p></DEL></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40">The Registrant's Articles and the </DEL></SPAN><I 

style="mso-bidi-font-style: normal"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40">B.C. Company Act </DEL></SPAN></I><SPAN 

class=msoDel><DEL cite="mailto:srreid" datetime="2002-12-03T13:40">contain 

provisions, which require a "special resolution" for effecting certain corporate 

actions.<SPAN style="mso-spacerun: yes">  </SPAN>Such a "special 

resolution" requires a three-quarters vote of shareholders rather than a simple 

majority for passage.<SPAN style="mso-spacerun: yes">  </SPAN>The principle 

corporate actions that require a "special resolution" include:</DEL></SPAN><SPAN 

class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><o:p></o:p></DEL></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><![if !supportEmptyParas]> <![endif]></DEL></SPAN><SPAN 

class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><o:p></o:p></DEL></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40">a.<SPAN style="mso-spacerun: yes">  

</SPAN>Transferring Company's jurisdiction from British 

Columbia</DEL></SPAN><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><o:p></o:p></DEL></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40">    to another 

jurisdiction;</DEL></SPAN><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><o:p></o:p></DEL></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40">b.<SPAN style="mso-spacerun: yes">  

</SPAN>Giving material financial assistance to executive 

officers</DEL></SPAN><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><o:p></o:p></DEL></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><SPAN style="mso-spacerun: yes">    

</SPAN>and/or directors;</DEL></SPAN><SPAN class=msoDel><DEL 

cite="mailto:srreid" 

datetime="2002-12-03T13:40"><o:p></o:p></DEL></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40">c.<SPAN style="mso-spacerun: yes">  

</SPAN>Material conflicts of interest by Directors;</DEL></SPAN><SPAN 

class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><o:p></o:p></DEL></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40">d.<SPAN style="mso-spacerun: yes">  

</SPAN>Disposing of all or substantially all of the Company's</DEL></SPAN><SPAN 

class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><o:p></o:p></DEL></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><SPAN style="mso-spacerun: yes">    

</SPAN>undertakings;</DEL></SPAN><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><o:p></o:p></DEL></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40">e.<SPAN style="mso-spacerun: yes">  

</SPAN>Removing a Director before the expiration of his term 

of</DEL></SPAN><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><o:p></o:p></DEL></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><SPAN style="mso-spacerun: yes">    

</SPAN>office;</DEL></SPAN><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><o:p></o:p></DEL></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40">f.<SPAN style="mso-spacerun: yes">  

</SPAN>Certain alterations of share capital;</DEL></SPAN><SPAN class=msoDel><DEL 

cite="mailto:srreid" 

datetime="2002-12-03T13:40"><o:p></o:p></DEL></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><SPAN style="mso-spacerun: yes">    

</SPAN>(1) increasing the number of authorized shares;</DEL></SPAN><SPAN 

class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><o:p></o:p></DEL></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><SPAN style="mso-spacerun: yes">    

</SPAN>(2) subdivision, consolidation and/or changes in 

shares;</DEL></SPAN><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><o:p></o:p></DEL></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><SPAN style="mso-spacerun: yes">    

</SPAN>(3) reduction in capital</DEL></SPAN><SPAN class=msoDel><DEL 

cite="mailto:srreid" 

datetime="2002-12-03T13:40"><o:p></o:p></DEL></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40">g.<SPAN style="mso-spacerun: yes">  

</SPAN>Changing the Company name;</DEL></SPAN><SPAN class=msoDel><DEL 

cite="mailto:srreid" 

datetime="2002-12-03T13:40"><o:p></o:p></DEL></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40">h.<SPAN style="mso-spacerun: yes">  

</SPAN>Altering any restrictions on the Company's business; 

and</DEL></SPAN><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40"><o:p></o:p></DEL></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN class=msoDel><DEL cite="mailto:srreid" 

datetime="2002-12-03T13:40">i.<SPAN style="mso-spacerun: yes">  

</SPAN>Amalgamations with another company.</DEL></SPAN><SPAN class=msoDel><DEL 

cite="mailto:srreid" 

datetime="2002-12-03T13:40"><o:p></o:p></DEL></SPAN></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><B 

style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 10pt">PART 

III</SPAN></B><SPAN style="FONT-SIZE: 10pt"><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt">ITEM 

17.<SPAN style="mso-spacerun: yes">  </SPAN>FINANCIAL 

STATEMENTS</SPAN></U></B><SPAN style="FONT-SIZE: 10pt"><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

Company's financial statements are stated in Canadian Dollars (CDN$) 

and are prepared in accordance with Canadian Generally Accepted Accounting 

Principles (GAAP), the application of which, in the case of the Company, 

conforms in all material respects for the periods presented with US  GAAP, 

except as disclosed in footnotes to the financial 

statements.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">The 

audited financial statements for the year ended May 31, 2002 as required under 

ITEM #17 are included hereto immediately following the text of this annual 

report. The audit report of KPMG LLP, Independent Auditors, are included herein 

immediately preceding the financial statements.<INS cite="mailto:pdowad" 

datetime="2002-12-03T12:08"><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1208"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" datetime="2002-12-03T12:08"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1208"><B><U><SPAN 

style="FONT-SIZE: 10pt"><SPAN style="mso-prop-change: pdowad 20021203T1208"><INS 

cite="mailto:pdowad" datetime="2002-12-03T12:08"><U><SPAN 

style="mso-prop-change: pdowad 20021203T1208">I<SPAN 

style="mso-prop-change: pdowad 20021203T1208">TEM 18.<SPAN 

style="mso-tab-count: 1">    </SPAN><SPAN 

style="mso-prop-change: pdowad 20021203T1208">FINANCIAL STATEMENTS<SPAN 

style="mso-prop-change: pdowad 20021203T1208"><o:p></o:p></SPAN></SPAN></SPAN></SPAN></U></INS></SPAN></SPAN></U></B></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1208"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" datetime="2002-12-03T12:08"><![if !supportEmptyParas]> <![endif]><o:p></o:p></INS></SPAN></P>

<P class=MsoNormal 

style="TEXT-INDENT: 0in; TEXT-ALIGN: justify; mso-text-indent-alt: 0in; mso-list: none; mso-list-ins: pdowad 20021203T1208"><SPAN 

style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" 

datetime="2002-12-03T12:08">Not applicable.<SPAN 

style="mso-spacerun: yes">  </SPAN>The Company has elected to file under 

Item 17.</INS><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt">ITEM 

19.<SPAN style="mso-spacerun: yes">  

</SPAN>EXHIBITS<o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt">(A) 

Audited Financial Statements<o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal 

style="MARGIN-LEFT: 0.25in; TEXT-INDENT: -0.25in; TEXT-ALIGN: justify; tab-stops: list .25in; mso-text-indent-alt: -.25in; mso-list: l2 level1 lfo11; mso-list-change: \F0D8 pdowad 20021203T1127"><![if !supportLists]><SPAN 

style="FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">Ø<SPAN 

style="FONT: 7pt 'Times New Roman'">       

</SPAN></SPAN><![endif]><SPAN style="FONT-SIZE: 10pt">Auditor's Report, dated 

October 18, 2002<o:p></o:p></SPAN></P>

<P class=MsoNormal 

style="MARGIN-LEFT: 0.25in; TEXT-INDENT: -0.25in; TEXT-ALIGN: justify; tab-stops: list .25in; mso-text-indent-alt: -.25in; mso-list: l22 level1 lfo12; mso-list-change: \F0D8 pdowad 20021203T1127"><![if !supportLists]><SPAN 

style="FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">Ø<SPAN 

style="FONT: 7pt 'Times New Roman'">       

</SPAN></SPAN><![endif]><SPAN style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" 

datetime="2002-12-03T12:09">C</INS><SPAN class=msoDel><DEL cite="mailto:pdowad" 

datetime="2002-12-03T12:09">B</DEL></SPAN><INS cite="mailto:pdowad" 

datetime="2002-12-03T12:09">onsolidated B</INS>alance Sheets at May 31, 2002 and 

2001 <o:p></o:p></SPAN></P>

<P class=MsoNormal 

style="MARGIN-LEFT: 0.25in; TEXT-INDENT: -0.25in; TEXT-ALIGN: justify; tab-stops: list .25in; mso-text-indent-alt: -.25in; mso-list: l8 level1 lfo13; mso-list-change: \F0D8 pdowad 20021203T1127"><![if !supportLists]><SPAN 

style="FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">Ø<SPAN 

style="FONT: 7pt 'Times New Roman'">       

</SPAN></SPAN><![endif]><SPAN style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" 

datetime="2002-12-03T12:09">Consolidated </INS>Statements of Operations and 

Deficit<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN style="mso-spacerun: yes">   </SPAN>for 

the Year<INS cite="mailto:pdowad" datetime="2002-12-03T12:09">s</INS> ended May 

31, 2002, 2001 and 2000<o:p></o:p></SPAN></P>

<P class=MsoNormal 

style="MARGIN-LEFT: 0.25in; TEXT-INDENT: -0.25in; TEXT-ALIGN: justify; tab-stops: list .25in; mso-text-indent-alt: -.25in; mso-list: l12 level1 lfo14; mso-list-change: \F0D8 pdowad 20021203T1127"><![if !supportLists]><SPAN 

style="FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">Ø<SPAN 

style="FONT: 7pt 'Times New Roman'">       

</SPAN></SPAN><![endif]><SPAN style="FONT-SIZE: 10pt"><INS cite="mailto:pdowad" 

datetime="2002-12-03T12:10">Consolidated </INS>Statements of <SPAN 

class=msoDel><DEL cite="mailto:pdowad" datetime="2002-12-03T12:09">Changes in 

</DEL></SPAN>Cash Flows<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN style="mso-spacerun: yes">   </SPAN>for 

the Years ended May 31, 2002, 2001 and 2000<o:p></o:p></SPAN></P>

<P class=MsoNormal 

style="MARGIN-LEFT: 0.25in; TEXT-INDENT: -0.25in; TEXT-ALIGN: justify; tab-stops: list .25in; mso-text-indent-alt: -.25in; mso-list: l27 level1 lfo15; mso-list-change: \F0D8 pdowad 20021203T1127"><![if !supportLists]><SPAN 

style="FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">Ø<SPAN 

style="FONT: 7pt 'Times New Roman'">       

</SPAN></SPAN><![endif]><SPAN style="FONT-SIZE: 10pt">Notes to <SPAN 

class=msoDel><DEL cite="mailto:pdowad" datetime="2002-12-03T12:10">the 

</DEL></SPAN><INS cite="mailto:pdowad" datetime="2002-12-03T12:10">Consolidated 

</INS>Financial Statements<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><B 

style="mso-bidi-font-weight: normal"><U><SPAN style="FONT-SIZE: 10pt">(B)<SPAN 

style="mso-spacerun: yes">  </SPAN>Additions to 

exhibits<o:p></o:p></SPAN></U></B></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN 

style="mso-spacerun: yes">                                                             

</SPAN><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">     1.<SPAN 

style="mso-spacerun: yes">  </SPAN>Certificate of Incorporation, Name 

Changes<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN 

style="mso-spacerun: yes">         

</SPAN>and Articles/By-Laws of the Company.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">-- 

Included by reference of 20F Registration Statement Amendment #2 

--<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN style="mso-spacerun: yes">     

</SPAN>2.<SPAN style="mso-spacerun: yes">  </SPAN>Instruments defining the 

rights of holders<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN 

style="mso-spacerun: yes">         

</SPAN>of equity or debt securities being registered.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt">-- 

Included by reference of 20F Registration Statement Amendment #2 

--<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN style="mso-spacerun: yes">     

</SPAN>3.<SPAN style="mso-spacerun: yes">  </SPAN>Other 

Exhibits:<o:p></o:p></SPAN></P>

<P class=MsoNormal 

style="MARGIN-LEFT: 83.25pt; TEXT-INDENT: -83.25pt; TEXT-ALIGN: justify; tab-stops: list 83.25pt; mso-text-indent-alt: -21.0pt; mso-list: l25 level1 lfo3; mso-list-change: '%1\:1\:4\:\.' pdowad 20021203T1127"><![if !supportLists]><SPAN 

style="FONT-SIZE: 10pt">a.<SPAN 

style="FONT: 7pt 'Times New Roman'">      

</SPAN></SPAN><![endif]><SPAN style="FONT-SIZE: 10pt">Notice/Information 

Circular for Annual General Meetings<o:p></o:p></SPAN></P>

<P class=MsoNormal style="MARGIN-LEFT: 62.25pt; TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt"><SPAN style="mso-spacerun: yes">   </SPAN>held 

November 14, 2002 -- Included by reference Form 6K --<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P><SPAN 

style="FONT-SIZE: 10pt; FONT-FAMILY: 'Courier New'; mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: 'Times New Roman'; mso-font-kerning: 14.0pt; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA"><BR 

style="PAGE-BREAK-BEFORE: always; mso-special-character: line-break" 

clear=all></SPAN>

<P class=MsoNormal style="TEXT-ALIGN: justify"><![if !supportEmptyParas]><![endif]> <SPAN 

style="FONT-SIZE: 10pt"><o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center>SIGNATURE PAGE</P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Pursuant to the requirements of section 12g of the 

Securities Exchange Act of 1934, the Registrant certifies that it meets all of 

the requirements for filing on Form 20-F and has duly caused this Annual Report 

to its Registration Statement to be signed on its behalf by the undersigned, 

thereunto duly authorized.<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><U><SPAN 

style="FONT-SIZE: 10pt">Calais Resources Inc.: SEC File No. 

0-29392<o:p></o:p></SPAN></U></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt">Registrant<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN 

style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: justify"><SPAN 

style="FONT-SIZE: 10pt">Dated <U>NOVEMBER 22 ,2002 </U><SPAN 

style="mso-spacerun: yes"> </SPAN><SPAN 

style="mso-tab-count: 2">           

</SPAN>By<U><SPAN style="mso-spacerun: yes">   </SPAN>“ART DAHER” 

<SPAN style="mso-tab-count: 2">       </SPAN><SPAN 

style="mso-spacerun: yes">  </SPAN><SPAN 

style="mso-tab-count: 1">    </SPAN><o:p></o:p></U></SPAN></P>

<P class=MsoNormal><SPAN 

style="FONT-SIZE: 9pt; mso-bidi-font-size: 10.0pt"><SPAN 

style="mso-tab-count: 4">                           

</SPAN><SPAN style="mso-spacerun: yes">    </SPAN><SPAN 

style="mso-tab-count: 1">   </SPAN><SPAN 

style="mso-spacerun: yes">  </SPAN><SPAN 

style="mso-tab-count: 1">     </SPAN><SPAN 

style="mso-spacerun: yes">   </SPAN>Art Daher, 

Secretary/Director<o:p></o:p></SPAN></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><B 

style="mso-bidi-font-weight: normal"><![if !supportEmptyParas]><![endif]> <o:p></o:p></B></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><B 

style="mso-bidi-font-weight: normal"><![if !supportEmptyParas]><![endif]> <o:p></o:p></B></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><B 

style="mso-bidi-font-weight: normal"><![if !supportEmptyParas]><![endif]> <o:p></o:p></B></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><B 

style="mso-bidi-font-weight: normal"><![if !supportEmptyParas]><![endif]> <o:p></o:p></B></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><B 

style="mso-bidi-font-weight: normal"><![if !supportEmptyParas]><![endif]> <o:p></o:p></B></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><B 

style="mso-bidi-font-weight: normal"><![if !supportEmptyParas]><![endif]> <o:p></o:p></B></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><B 

style="mso-bidi-font-weight: normal"><![if !supportEmptyParas]><![endif]> <o:p></o:p></B></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><B 

style="mso-bidi-font-weight: normal"><![if !supportEmptyParas]><![endif]> <o:p></o:p></B></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><B 

style="mso-bidi-font-weight: normal"><![if !supportEmptyParas]><![endif]> <o:p></o:p></B></P>

<P class=MsoNormal><B style="mso-bidi-font-weight: normal"><SPAN 

style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></B></P><B 

style="mso-bidi-font-weight: normal"><SPAN 

style="FONT-SIZE: 10pt; FONT-FAMILY: 'Courier New'; mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: 'Times New Roman'; mso-font-kerning: 14.0pt; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA"><BR 

style="PAGE-BREAK-BEFORE: always; mso-special-character: line-break" 

clear=all></SPAN></B>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><![if !supportEmptyParas]><![endif]> <B 

style="mso-bidi-font-weight: normal"><SPAN 

style="FONT-SIZE: 10pt"><o:p></o:p></SPAN></B></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><B 

style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></B></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><B 

style="mso-bidi-font-weight: normal"><SPAN 

style="FONT-SIZE: 10pt">CERTIFICATIONS<o:p></o:p></SPAN></B></P>

<P class=MsoNormal style="TEXT-ALIGN: center" align=center><B 

style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></B></P>

<P class=MsoNormal><B style="mso-bidi-font-weight: normal"><SPAN 

style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></B></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt">I, CERTIFY 

THAT:<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoList 

style="TEXT-INDENT: -0.25in; tab-stops: list .25in; mso-text-indent-alt: -.25in; mso-list: l19 level1 lfo7; mso-list-change: '%1\:1\:0\:\.' pdowad 20021203T1127"><![if !supportLists]><SPAN 

style="FONT-SIZE: 10pt">1.<SPAN 

style="FONT: 7pt 'Times New Roman'">    

</SPAN></SPAN><![endif]><SPAN style="FONT-SIZE: 10pt">I HAVE REVIEWED THIS 

ANNUAL REPORT ON Form 20-F of Calais Resources Inc.<o:p></o:p></SPAN></P>

<P class=MsoNormal 

style="MARGIN-LEFT: 0.25in; TEXT-INDENT: -0.25in; tab-stops: list .25in; mso-text-indent-alt: -.25in; mso-list: l19 level1 lfo7; mso-list-change: '%1\:2\:0\:\.' pdowad 20021203T1127"><![if !supportLists]><SPAN 

style="FONT-SIZE: 10pt">2.<SPAN 

style="FONT: 7pt 'Times New Roman'">    

</SPAN></SPAN><![endif]><SPAN style="FONT-SIZE: 10pt">Based on my knowledge, 

this annual report does not contain any untrue statement of a material fact or 

omit to state a material fact necessary to make the statements made, in light of 

the circumstances under which such statements were made, not misleading with 

respect to the period covered by this annual report; and<o:p></o:p></SPAN></P>

<P class=MsoNormal 

style="MARGIN-LEFT: 0.25in; TEXT-INDENT: -0.25in; tab-stops: list .25in; mso-text-indent-alt: -.25in; mso-list: l19 level1 lfo7; mso-list-change: '%1\:3\:0\:\.' pdowad 20021203T1127"><![if !supportLists]><SPAN 

style="FONT-SIZE: 10pt">3.<SPAN 

style="FONT: 7pt 'Times New Roman'">    

</SPAN></SPAN><![endif]><SPAN style="FONT-SIZE: 10pt">Based on my knowledge, the 

financial statements, and other financial information included in this annual 

report, fairly present in all material respects the financial condition, results 

of operations and cash flows of the registrant as of, and for, the periods 

presented in this annual report.<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt">Date: November 22, 2002<SPAN 

style="mso-tab-count: 2">       

</SPAN><U>/s/_”MELVIN MARTIN”________________<o:p></o:p></U></SPAN></P>

<P class=MsoHeader style="tab-stops: .5in"><SPAN style="FONT-SIZE: 10pt"><SPAN 

style="mso-tab-count: 6">                                    

</SPAN>MELVIN MARTIN / Director<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt">I, CERTIFY 

THAT:<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoList 

style="TEXT-INDENT: -0.25in; tab-stops: list .25in; mso-text-indent-alt: -.25in; mso-list: l19 level1 lfo7; mso-list-change: '%1\:4\:0\:\.' pdowad 20021203T1127"><![if !supportLists]><SPAN 

style="FONT-SIZE: 10pt">4.<SPAN 

style="FONT: 7pt 'Times New Roman'">    

</SPAN></SPAN><![endif]><SPAN style="FONT-SIZE: 10pt">I HAVE REVIEWED THIS 

ANNUAL REPORT ON Form 20-F of Calais Resources Inc.<o:p></o:p></SPAN></P>

<P class=MsoNormal 

style="MARGIN-LEFT: 0.25in; TEXT-INDENT: -0.25in; tab-stops: list .25in; mso-text-indent-alt: -.25in; mso-list: l19 level1 lfo7; mso-list-change: '%1\:5\:0\:\.' pdowad 20021203T1127"><![if !supportLists]><SPAN 

style="FONT-SIZE: 10pt">5.<SPAN 

style="FONT: 7pt 'Times New Roman'">    

</SPAN></SPAN><![endif]><SPAN style="FONT-SIZE: 10pt">Based on my knowledge, 

this annual report does not contain any untrue statement of a material fact or 

omit to state a material fact necessary to make the statements made, in light of 

the circumstances under which such statements were made, not misleading with 

respect to the period covered by this annual report; and<o:p></o:p></SPAN></P>

<P class=MsoNormal 

style="MARGIN-LEFT: 0.25in; TEXT-INDENT: -0.25in; tab-stops: list .25in; mso-text-indent-alt: -.25in; mso-list: l19 level1 lfo7; mso-list-change: '%1\:6\:0\:\.' pdowad 20021203T1127"><![if !supportLists]><SPAN 

style="FONT-SIZE: 10pt">6.<SPAN 

style="FONT: 7pt 'Times New Roman'">    

</SPAN></SPAN><![endif]><SPAN style="FONT-SIZE: 10pt">Based on my knowledge, the 

financial statements, and other financial information included in this annual 

report, fairly present in all material respects the financial condition, results 

of operations and cash flows of the registrant as of, and for, the periods 

presented in this annual report.<o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><![if !supportEmptyParas]><![endif]> <o:p></o:p></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt">Date: November 22, 2002<SPAN 

style="mso-tab-count: 2">       </SPAN><U>/s/_”ART 

DAHER”____________<o:p></o:p></U></SPAN></P>

<P class=MsoNormal><SPAN style="FONT-SIZE: 10pt"><SPAN 

style="mso-tab-count: 6">                                    

</SPAN>ART DAHER / Secretary/Director<o:p></o:p></SPAN></P>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <o:p></o:p></P>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <o:p></o:p></P>

<P class=MsoNormal><![if !supportEmptyParas]><![endif]> <o:p></o:p></P>

<P 

class=MsoNormal><![if !supportEmptyParas]><![endif]> <o:p></o:p></P></DIV></BODY></HTML>