Dear Mr. Ross,

Thank you for your messages concerning the recent suspension of mining activity in Ecuador and the potential impact on Canadian companies operating in the region. Since April 18, 2008, when the Constituent Assembly of Ecuador voted in favour of a mandate that declares most of the country’s mining concessions expired, Canadian officials have undertaken several actions to ensure the protection of Canadian interests and that legal obligations are met.

As you will know from the message sent to you by the Canadian Embassy in Quito, Ecuador, officials at the Canadian Embassy in Quito were immediately in touch with Ecuadorian representatives to obtain clarification on the precise details of the mandate, the legal implications and the potential effect on Canadian companies. Subsequently the Canadian Embassy in Ecuador secured a meeting for the Canadian Ambassador and eight Canadian companies with Ecuadorian President Raphael Correa. This meeting served to state the implications of the approved mandate on the respective companies and share Canada’s position and concerns with respect to the mandate including the considerable loss of market capital value on the international stock markets.

Following these events, a Canadian team from Ottawa met with Ecuador government officials and Canadian mining company representatives during the week of May 26. The purpose of the visit was to express Canadian government concern with respect to recent actions to suspend mining activity in Ecuador and with regard to potential revisions to mining sector legislative framework.