In the report management did address the issues as follows: (However, the rules are put in place for reasons to protect investors against inappropriate behavior of the companies assets and questions as to how these assets could be subject to such behavior should be asked so it never happens again; I guess it has been addressed in this report, but it is correct to be concerned about how it was able to happen in the first place. At least Management has been put on notice and we can now get on with the task at hand which is growing investors valuations.)

Management, under the Board’s direction, has undertaken significant additional work to ensure the consolidated financial statements are free from material misstatement that may not have been prevented or detected as a result of the material weaknesses noted. Furthermore, Management has identified and commenced the implementation of additional internal control procedures, particularly in remote locations, to ensure the acquisition, use or disposal of the Company’s assets are appropriately authorized.

Management has taken the following steps to address the weaknesses identified:

(a) Monitoring and override of established controls: Management continues to work with the subsidiary managers, particularly at remote locations, to ensure corporate policies and internal control procedures are respected by all and information is provided on a timely basis. Training and coordination of activities amongst the senior managers of the subsidiaries is ongoing.

(b) Controls over the purchasing function: Management has begun a process of renewing and updating the physical documentary support for existing service providers and suppliers and establishing a regimen of pre-qualifying potential new service providers and suppliers. Management has implemented additional controls at the subsidiary level to ensure appropriate approval and timely authorization of suppliers. We are continuing to reinforce compliance with these controls.

(c) Controls over accounting for income tax timing differences: Management continues to work with independent expert advisors, in both Canada and Venezuela, to ensure the timely identification of those items giving rise to timing differences for income tax purposes. Management has implemented controls to ensure the valuation basis, for both accounting and tax reporting purposes, of the Company’s assets, is identified, recorded and retained for financial reporting purposes.

Johan van’t Hof Gordon Thompson Hemdat Sawh

Chairman of the Audit Committee President & Chief Executive Officer Chief Financial Officer