Governance

The Board believes that good corporate governance practices are important and has delegated to the Corporate Governance and Human Resources Committee the responsibility of reviewing the Company’s corporate governance practices and making recommendations to the Board with respect thereto. The Board believes that the value of the principal shareholder’s equity stake in the Company ensures that its interests are aligned with those of the other shareholders of the Company. The Board believes that the Company’s existing corporate governance practices are appropriate to its circumstances and effective, and that there are appropriate structures, procedures and practices in place to ensure board efficiency, board independence from Management and fair representation of the investment of minority shareholders of the Company.

The Company follows the evolution of corporate governance practices and guidelines in Canada. The Corporate Governance and Human Resources Committee and the Board will pursue their review of the Company’s corporate governance practices and, if appropriate, will implement changes to improve them.