The information below was taken from the MDA issued in March. It appears that we have negotiated with our creditors so that we have no debt.

Subsequent to year end, the Company reached an agreement with the holders of its outstanding 12% convertible debentures maturing on July 31, 2013 (the "Debentures") to convert the aggregate principal amount of the Debentures, being $6,000,000, as well as the accrued and unpaid interest thereon and all
associated prepayment premiums, amounting to $7,348,048 in total, into common shares ("Common Shares") and warrants to purchase Common Shares ("Warrants"). The Company reached a similar agreement with the holder of a demand promissory note (the "Note") to convert $362,357 in principal and accrued and unpaid interest into Common Shares and Warrants.

Under the terms of such debt conversions, on March 26, 2009 the Company issued an aggregate of 11,014,867 Common Shares and Warrants in full repayment of the Debentures and the Note. The Common Shares and Warrants were issued on the basis of one Common Share and one Warrant for each $0.70 of indebtedness, being the identical price at which the Company recently issued Common Shares and Warrants