This discussion and analysis should be read in conjunction with the unaudited consolidated financial statements of the Company for the six months ended June 30, 2007 and the audited consolidated financial statements for the years ended December 31, 2006 and 2005 and the notes thereto. The consolidated financial statements have been prepared in accordance with Canadian generally accepted accounting principles ("GAAP"), with the Canadian dollar as the reporting currency. This discussion and analysis is prepared as of August 13, 2007.