Vencap, Inc.

Vencap, Inc. filed an assignment in bankruptcy on October 19, 2012 under the BIA in Alberta, court file no. 24-1677807, with Duff & Phelps Canada Restructuring Inc. as trustee. The proceedings remain active. The Government of Alberta, shown on the Company's Statement of Affairs as an unsecured creditor, filed a proof of claim on a secured basis for approximately $52.6 million, relying on a January 3, 1996 Pledge Agreement over a Government of Canada zero coupon strip Bond with a face value of $10.05 million at maturity and current market value of approximately $7.6 million, securing the October 12, 1983 Participating Debenture as amended. The Trustee intends to have counsel opine on the validity and enforceability of that security; Alberta is expected to incur a significant shortfall and become the largest unsecured creditor. Other Statement of Affairs claims include the Canada Revenue Agency at $127,000 for unpaid income taxes on a deemed trust basis, $70,000 owing to Alberta for unpaid income taxes, former VEAL debenture holders at $567,000, and Computershare at $2,600.