Chili,

You had previously indicated that you were a consultant. If you recieved some shares for services , as a consultant you are considered as independant contractor (according to Canadian income tax act). You have to include this as income (no capital gains exemption) of the value (pre Jag merger). For example, if you exercised 20,000 shares for the aggregate of $1 option (pre-Jag merger), you have to include this in your 2009 return as $20,000 income (no capital gain exemption). You can, however, deduct expenses you incurred through consulting (office space in your home, heating, car....). For $20,000 original shares you get about 460,000 CGNH shares (after merger 23 : 1 ratio). Then your Adjusted Cost Base (ACB) becomes about 0.048 / share. When you sell the shares you then pay capital gains/ or loss on the difference of sell price - ACB. This is why, you will see this week and next week, the Consultants wo don't have the money to pay for taxes, sell some or part of their shares, to atleast recoup the money they owe in Taxes (by April, 2010). I estimate, they need to sell about 10 - 15 % of their holding (depends on their tax bracket and expenses incurred). I estimate that there about 5-6 million shares given to consultants, including the recently engaged P.R. firm and former directors of JAG for their consulting expertise (as previously announced).

I have the $ to pay my taxes, so I would rather keep all my shares. I also heard through grapevine, that 1 consultant does not believe in CGNH and will slowly sell all his holdings. The P.R. firm, I believe will do the same. I know another consulatant, like I, that will not sell any. There are probably about 3-4 other consultants that I do not know.