Eron Lenders
Projects 1109, 1174 and 1208
Borrower: Everbrite Ventures Ltd.
Lender update

November 29, 1999

We are writing to advise you of developments on this project since our letter of July 3, 1998. On January 29, 1999 the first mortgagee, Olympus Mortgage Investment Corporation ("Olympus") obtained an Order Nisi. The amount due to Olympus on that date was $2,047,860.50. On July 29, 1999 Olympus obtained an order:

- appointing a Receiver,
- empowering the Receiver to list the lots at individual prices which total $2.372 million, and
- empowering the Receiver to accept any offer within 10% of the list price.

In view of this, it is expected that there will be no recovery available to the 2nd , 3rd, or 4th mortgages we hold on the property. We do have judgement against the principal, Mr. Henry Unger, however, based upon statutory declarations received, we believe that any recovery on that judgement will be less than the $72,795 ($51,217 Trustee and $21,577 legal) incurred by the Judicial Trustee to August 31, 1999 in respect of this Project.

Accordingly, lenders should not anticipate any return on this project.

Yours truly

PricewaterhouseCoopers Inc.
Judicial Trustee, Per:

Richard D. Pallen, C.A., C.I.P, C.F.E.





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