FUND MANAGEMENT

Evans & Evans currently acts as Investment Manager for the Qwest Technology Fund (VCC) Ltd. (the “Qwest Fund”), a $2.0 million Venture Capital Corporation (VCC) fund based in Vancouver, British Columbia. The Qwest Fund is fully invested and is, specifically, invested in a total of nine private and public companies based in British Columbia and involved in the Information Technology and Health Sciences industries.

Through offering Fund Management services Evans & Evans is able, in some instances, to bring direct investment participation to its clients. This resource can often be crucial to clients since, regardless of capital market conditions, access to capital remains at the forefront of most emerging companies' required list. Those direct investment resources can often be matched with the investment of other funds and investors that are brought forward by Evans & Evans and/or its clients.

Evans & Evans is currently planning the establishment of a second fund and is targeting a completion date for this fund by the end of calendar year 2004. The specific investment focus and management team of this fund has not been finalized at this time but it is the intention of Evans & Evans to ensure that the fund will be built on the strengths of Evans & Evans' experience, expertise and contacts.