The TSX Venture Exchange has consented to the reduction in the exercise price and to the term extension of the following warrants.

Warrant price reduction

Warrants:  12,709,999

Forced exercise provision:  If the closing price for the company's shares is 6.25 cents or greater for a period of 10 consecutive trading days, then the warrantholders will have 30 days to exercise their warrants; otherwise the warrants will expire on the 31st day.

Original exercise price:  25 cents

New exercise price:  five cents

Warrant term extension

Warrants:  12,709,999

Original expiry date:  Feb. 13, 2015

New expiry date:  Feb. 13, 2017

These warrants were issued pursuant to a private placement of 12,709,999 shares with 12,709,999 share purchase warrants attached, which was accepted for filing by the exchange effective April 26, 2012.