The Company proposes to raise additional working capital by inducing the subscribers of its private
placement which closed in August 2009 to exercise up to an aggregate of 41,050,000 warrants (the
“Existing Warrants”). The Existing Warrants have an expiry date of February 6 and 28, 2012 and have an
exercise price of $0.125 per share. If a participant elects to exercise an Existing Warrant, the Company
would issue to that participant an inducement warrant (the “Inducement Warrant”), in the same number of
shares as the Existing Warrant exercised by the participant. The Inducement Warrant would be
exercisable at a price of $0.128 per share on or before 30 months from the date of grant. The participants
only have until September 30, 2009 to exercise Existing Warrants in order to qualify for Inducement
Warrants. Further details on the Inducement Warrants may be found in the Company’s news release
dated September 29, 2009 attached to this letter.
One condition for the acceptance by the TSX of the proposed Inducement Warrants is that the Company
obtain disinterested shareholder approval of the Inducement Warrants.
The TSX may accept written consents from shareholders holding more than 50% of the issued shares
preceding the exercise of the Existing Warrants, failing which the Company will either place the transaction
before the shareholders at a shareholder meeting, or terminate the proposed Inducement Warrants.
Since you own, or exercise control or direction over, a significant number of the issued shares of the
Company, we request that you advise us whether or not you support the transaction, as set forth above.
Please indicate your decision in the space provided below and return this letter to us by fax, e-mail or viacourier at your earliest convenience. (If sent by fax or e-mail, please mail the originally executed documentto our offices.) We would appreciate your response by October 30, 2009, and therefore your co-operation in
this regard is much appreciated.