Mr. Osvaldo Iadarola reports

The company previously reported on June 4, 2001, that it had arranged a private placement of a total of 290,000 units to seven investors at a price of 20 cents, to raise a total of $58,000.00. Each unit includes one common share and one detachable non-transferable share purchase warrant entitling the purchaser to purchase an additional share in the capital of the company over a term of one year at an exercise price of 25 cents per share until the date which is 12 months following the date of issuance of the unit.

The company has amended the private placement to include a total of 190,000 units to six investors at a price of 20 cents to raise a total of $38,000. All remaining terms of the private placement remain the same. The private placement is subject to the acceptance of the Canadian Venture Exchange.