RE: RE: ANNUAL REPORTHow about this $2,800,000 hooter
The penalty common shares resulted in a charge to operationsof $2,895,498 for the year ended December 31, 2010 (2009-$3,261,762). As atDecember 31, 2010, the Company has recorded an estimated aggregate of 29,156,194(2009: 18,580,124) in common shares valued at $4,081,867 (2009: $5,388,236)in relation to the penalty shares owing to the shareholder the Company has notreached a settlement with. The cumulative amount accrued for the obligationhas been recorded based on the quoted market price at December 31, 2010 and2009 multiplied by the aggregate share amount.