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

Private placement

Number of warrants:  20 million

Expiry date of warrants:  Dec. 19, 2017

Forced exercise provision:  If the closing price for the company's shares is 50 cents or greater for a period of 20 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 of warrants:  50 cents in the third, fourth and fifth years

New exercise price of warrants:  37.5 cents in the third, fourth and fifth years

These warrants were issued pursuant to a private placement of 20 million shares, with 20 million share purchase warrants attached, which was accepted for filing by the exchange effective Dec. 21, 2012.