The Company has entered into a 12 month term loan agreement to borrow $2,000,000. The loan bears simple interest of 12% of which the principal and interest is due 12 months from the advance date of the loan. The Company may prepay the loan at any time without penalty. As further consideration to the lenders for making the loan, the Company has agreed to issue 800,000 bonus warrants exercisable into common shares at a price of $1.15 per common share for 12 months. The bonus warrants and any common shares issued on exercise thereof, will bear a hold period of four months and one day from the date of issuance of the bonus warrants. The issuance of the bonus warrants is subject to the Company's receipt of TSX Venture Exchange approval.