MD&A (SEDAR, DEC 31, 2007):

SHAREHOLDER RIGHTS PLAN

On June 19, 2007, the shareholders of the Company voted to approve the adoption of a shareholder rights plan (the “Rights Plan”).

The rights Plan is being adopted in order to reflect developments in Canada with respect to shareholder rights plans and is designed to encourage the fair treatment of shareholders in connection with any take-over bid for the Company. The plan provides the Board and shareholders with more time to fully assess any unsolicited take-over bid without undue pressure, and to pursue, if appropriate, other alternatives to maximize shareholder value and allow additional time for competing bids to emerge. The plan was not proposed in response to any acquisition or take-over offer and is not intended to prevent one. The rights become exercisable only when a person or party acquires or announces an intention to acquire 20% or more of the outstanding shares of the Company without complying with the “Permitted Bid” provisions of the plan. The Plan is subject to reconfirmation every third annual meeting of shareholders until the plan expires in 2016.