Hi Sharky:

Hope you are having a good summer!

The past two years for Connacher have been one misstep after another. One of the results in my opinion, is that the company has lost significant standing in the investment community as regards investment desirability. The result has been not only share dilution but, investment credibility. Such is obvious in the details of financing costs the company is paying.

An additional cost of this situation has been a loss of standing and influence in the investment community. This is more difficult to measure but, it exists as a cost which all shareholders have paid for.

One can attempt to justify all of these problems by attributing them to bad luck. However, I believe it goes much deeper than just bad luck. The nexus of all of Connachers problems lie in the under capitalization of financing on Pod 1. This resulted in a panic attack when the market collapsed in 2008 which in turn caused damage to the yield of Pod 1 and considerable subsequent cost in remediation of the resultant degraded capability and productive yield of Pod 1. A remediation which never did return Connacher to its productive capability at Pod 1. This in turn, caused the degradation of credit standing of Connacher with the resultant high borrowing costs for Algar.

All in all, enormous costs principally borne by the common share holders investing prior to 2009.

Brian