To Lenders in Mortgages Arranged by Eron Mortgage Corporation ("Eron") or Related Entities - January 23, 1997

 We have written to you periodically with respect to our appointment as Judicial Trustee in place of Eron and several other companies. Four months have passed since our appointment and in that time we have gathered significant information in respect to Eron's conduct of business and the status of the various projects. We have communicated to many of you with respect to your concerns regarding the ultimate recovery of your investments with Eron and believe that we are now in a position to answer many questions which we did not have the information to answer in the early stages of our appointment.

We will be holding a general meeting of Eron lenders at the Vancouver Trade & Convention Centre, Ball Room A/B/C, on Saturday, February 7th, 1998 at 9:30 a.m. The purpose of the meeting is to provide you with an update on our work and findings to date and provide a forum for response to your questions.

The agenda for the meeting is as follows:

9:00 Doors Open

9:30 Judicial Trustee presentation
- general overview of the Eron group of companies
- summary of the Judicial Trustee's findings to date

10:15 General question and answer period

11:30 Judicial Trustee presentation
- project overview

12:00 Break

12:30 Project question and answer period

To ensure that we deal with all questions, we ask that you submit your questions to us in writing either at the meeting or by fax or mail prior to the meeting. We will endeavour to answer all questions received in the order that they are submitted. We will answer general questions from the floor between 10:15 and 11:30. These questions do not have to be submitted prior to the meeting but must be on general, rather than project specific matters.

All costs associated with this meeting including professional time, mailing, room rental and beverages will be borne by Price Waterhouse, you will not bear any of the costs of this meeting.

We look forward to the opportunity to speak to you on February 7th.


Yours very truly

Price Waterhouse Limited

Judicial Trustee





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