The Company continues its focus on completing the equity financing for the Tugaske Project (“Tugaske”
or the “Project”). Since the previous quarter’s MD&A, Gensource has shifted financing efforts to
discussions with specific private equity groups and those discussions are progressing well towards
agreed term sheets for equity investments that will complete the full financing required to construct the
Tugaske Project and bring it into operations. Two independent groups have provided term sheets and negotiations are on-going to obtain the best value for Gensource shareholders while ensuring the full
financing for Tugaske is in place. The Company will provide disclosure on the financing when definitive
terms are agreed. In the immediate term, the Company intends to raise additional financing for the Bridge
Engineering Tugaske project and for working capital purposes.