Share Consolidation

Shareholders will be asked at the Meeting to approve a special resolution (the “Share Consolidation Resolution”) to consolidate all of the Company’s issued and outstanding Common Shares on the basis of a ratio of not more than one (1) post-consolidation Common Share for every ten (10) pre-consolidation Common Shares (the “Consolidation”), with the Consolidation to be implemented by the Company’s board of directors at any time prior to December 31, 2008.

The Consolidation remains subject to receipt of all necessary regulatory approvals, including shareholder approval and acceptance of TSX Venture Exchange.

As the Company relies on equity markets for capitalization, management is of the view that the proposed Consolidation addresses the dilutive consequences of a large outstanding number of Common Shares. Management is also of the view that the Consolidation would address the concern that low prices create larger bid / ask spreads which encourages non-synergistic, low value speculative trading and volatility which is unrelated to news and developments within the Company.

FANTOMAS