Liquidity and Capital Resources

At December 31, 2008 the Corporation had cash of $4.8 million (June 30, 2008 - $14.8 million), investments of $63.9 million (June 30, 2008 - $308.4 million) and a working capital position of $68.9 million (June 30, 2008 - $316.2 million).

The Corporation has sufficient cash resources to settle outstanding liabilities and fund continuing operations.

The Corporation has a dividend policy whereby a CDN$0.03 monthly dividend is paid out to shareholders.

During the three month period ended December 31, 2008 total dividend payments were $2.4 million ($4.3 million for the six month period ended December 31, 2008).

The Corporation also has a normal course issuer bid in place to repurchase its shares through the facilities of the Toronto Stock Exchange.

During the three month period ended December 31, 2008 155,700 shares were repurchased at an average price of CDN$5.07 and a total cost of $0.6 million. Due to unusual market conditions and in the interests of preserving cash balances the Corporation suspended the share buy-backs in mid October 2008.

The Corporation has no bank debt or banking credit facilities in place.

Subsequent Event

On February 4, 2009 the Corporation raised gross proceeds of $93.7 million (CDN $115 million) from a public offering of 64,975,000 units at a price of CDN $1.77 per unit.

The units consist of one common share of the Corporation and one-half of one share purchase warrant.

Each whole share purchase warrant will entitle the holder to purchase one common share of the Corporation at a price of CDN $2.50 per warrant share until February 4, 2014.

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