She has confirmed what I posted last week about a Canadian delegation visiting there next week. They seem to be on top of the situation and working on our behalf.

May 22, 2008

Dear Mr. Ross,

Re: Canadian Government Action on Mining in Ecuador

Thank you for your email expressing your concern regarding the recent suspension of mining activity in Ecuador and the potential impact on Canadian companies operating in the region.

Let me assure you that we are taking this matter very seriously. Since April 18, 2008, the Constituent Assembly of Ecuador voted in favour of a mandate that declares most of the country's mining concessions suspended. Since then Canadian officials have undertaken several actions to ensure the protection of Canadian interests.

Officials at the Canadian Embassy in Quito were immediately in touch with Ecuadorian representatives to obtain clarification on the precise details of the mandate, the legal implications and the potential effect on Canadian companies. Subsequently, the Canadian Embassy in Ecuador secured a meeting for the Canadian Ambassador and eight Canadian companies with the Ecuadorian President, Raphael Correa. This meeting served to state the implications of the approved mandate on the respective companies and to share Canada's position and concerns with respect to the mandate, including the considerable loss of market capital on the international stock markets.

Furthermore, Canada has a Foreign Investment Protection and Promotion Agreement with Ecuador. This Agreement provides Canadian investors with guarantees against, for instance, discrimination and expropriation without compensation, which, if breached, can be the basis for a monetary claim by affected investors before an international arbitration tribunal. The Government of Canada has stated its expectation that the Government of Ecuador will fully honour its obligations under this Agreement. A delegation from Canada will be travelling to Quito, Ecuador at the end of May to hold discussions with government officials and ministers of the Correa administration.

Although some uncertainty remains, we are taking the necessary steps to ensure the protection of Canadian interests. I am hopeful that a workable solution will be found for many of our investors.

Sincerely,