Hi Renaissance,

Seriously, what can I say about this subject, this is one of my biggest headaches...

As your question indicate, my last communication on this subject mentions the following:

•      HPQ Funding Option for the remaining $ 4,070,000

•      Ongoing discussions with Quebec Government officials confirm:  our project meets funding criteria

•      Startup nature of the Company curtails the size of the financial assistance available to 20% of pilot plant program cost  ($ 8,260,000), that would translate into 40% of the remaining funds needed

•      Final funding approval is now awaiting minister approval, a process that is under his sole discretion and timeline

Usually, when a demand like our is presented for minister approval there are 3 possible outcomes:

1. Simple denial of the funding application

    2. Conditional approval of the funding, subject to the Company completing it financing obligations related to its shares of the cost of the program plus cost overrun allocation.  Under this option the government does not allow public disclosure on the subject until all the conditions have been met and the project then move to outcome 3;

    3. Funding approval follows by the issuance of a binding financing commitment.

Now, if you have outcome 1 or 3, communication on the subject is not difficult, but problems arise when you are under option 2, one of the conditions that the Government dictate is  what you can and cannot say publicly.  This can become a very complicated situation for a public company.

So, in conclusion, all that I can say is that yes the meeting has taken place and I must limit my comment on the subject at that.   

Regards,

Bernard Tourillon

CEO HPQ RESOURCES INC