Mr. Michel Lassonde reports

FRONSAC: ACQUISITION OF SOGINCI INC.

As previously announced this week, Fronsac Real Estate Investment Trust has signed a letter of intent for the acquisition of all the issued and outstanding shares of Soginci Inc., a holding company that owns five real estate properties. During the financial year ended on Sept. 30, 2013, the triple-net rental revenues of these five properties reached $450,000. The five properties are composed of lands of approximately 222,220 square feet on which, in four cases, the tenants erected buildings that will revert to Soginci at the end of the leases. The lands are all rented pursuant to medium- and long-term leases. Three properties are located by a national oil company and the last two by national restaurant chain franchises.

A commission of $30,000 will be paid equally by the vendors and Fronsac to a real estate agent.

We seek Safe Harbor.