The Company entered into a loan agreement with a private company on July 30, 2009, whereby the Company agreed to loan that company a total of up to $6,000,000. The loan originally was repable on demand and bore interest at prime plus 4%. On February 9,2010, the Company and the borrower amended the loan such that the loan is repayable on July 30, 2014 and interest is at 4% per annum. As at September 30, 2010, the Company has advanced $6,000,000 (September 30, 2009 - $722,331) and accrued interest income of $229,086 (September 30, 2009 - $nil).

As collateral on the loan, the borrower has invested the $6,000,000 loan into mutual funds in Europe, the net asset value of the funds at September 30, 2010 is $6,286,735.