Price Waterhouse Limited - Eron Mortgage Corporation

General Update - April 2002

There are 39 projects that have been `fully realized' by the Judicial Trustee for Eron Mortgage Corporation.

Of those 39 projects, lenders have been paid approximately 60% of their expected recovery in 19 projects that have produced positive realizations.

There are 13 projects remaining to complete:

1107 Pacific Drive
570 Dunsmuir *
Caesar's Landing *
Eron Investment Corporation
Emerald Estates
Gateway Developments
Marlat *
Nexus
Paulsen Road *
STS Quadra
Riva Pointe *
Seasons Memorial Park *
Valleyview *

* projects currently estimated to provide some recovery to the lenders, pending the realization of assets of the project.

The current holdback of funds on fully realized projects is to enable the Judicial Trustee to effectively manage the rest of the Eron projects that have incurred expenses, but have not produced a realization to date. This is as directed by Court Order. The timing of future distributions is dependent on the realization of the above 13 projects.

PricewaterhouseCoopers Inc.
In its capacity as Judicial Trustee
For Eron Mortgage Corporation and others

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