BESWICK PROFESSIONAL APPRAISAL INC

File No. 210103

APPRAISAL OF

LOCATED AT:
2359 Brethour Ave.
Sidney, BC V8L 2A6

FOR:
Mr. Fraser Smith
Sidney
BC

AS OF:
March 9, 2010

BY:
Gary Bridge

475 Downey Road, Sidney BC V8L 5M7, (250) 656-5990

 SUMMARY APPRAISAL REPORT 210103
CLIENT: Mr. Fraser Smith HOME OWNERSHIP UNITS APPRAISER Gary Bridge
Complete x Limited
ADDRESS: Sidney, BC ADDRESS OF PROPERTY ADDRESS: Beswick Professional Appraisal
2359 Brethour Ave. 475 Downey Road, Sidney, BC
TEL: ( 250 ) 656-7077 CITY Sidney TEL: ( 250 ) 656-5990
PROVINCE BC POSTAL CODE V8L 2A6 beswickappraisals@shaw.ca
APPLICANT NAME
LEGAL DESCRIPTION Plan 1015, Lot 7, Blk 3, LD 40, Sec 12, Range 4E PID #001-516-906
No Title Search Performed
MUNICIPALITY or DISTRICT Town of Sidney
ASSESSMENT: LAND 320,000.00 IMP 117,000.00 TOTAL 437,000.00 TAXES $ 2639 ('09) YEAR 2010
PURPOSE OF APPRAISAL: To estimate the market value x or
INTENDED USE OF APPRAISAL: Financing x or
PROPERTY RIGHTS APPRAISED: Fee simple x Leasehold Condominium Co-operative Other (Specify)
OCCUPIED BY: Owner Tenant x Vacant
HIGHEST & BEST USE: x As Improved NOTE: IF HIGHEST & BEST USE IS NOT THE CURRENT USE - SEE COMMENTS
NEIGHBOURHOOD DESCRIPTION
NATURE OF DISTRICT TREND OF DISTRICT CONFORMITY OF SUBJ. AVG. AGE OF PROPERTIES SUPPLY DEMAND
x RESIDENTIAL x IMPROVING INFERIOR IN NEIGHBOURHOOD: GOOD x GOOD
RURAL x to STABLE x SIMILAR New to 50 YEARS x FAIR FAIR
MIXED DETERIORATING SUPERIOR AREA BUILT UP 100 % POOR POOR
TRANSITION
DISTANCE ELEMENTARY SCHOOL within 1 blks PUBLIC TRANSPORTATION 1.5 blks PRICE RANGE IN NEIGHBOURHOOD
TO SECONDARY SCHOOL within 1.5 kms SHOPPING FACILITIES 2 blks $ 423,500 - 1,375,000
DOWNTOWN 2 blks - Sidney Sales within the past 6 months
SUMMARY: including VALUE TRENDS AND ADVERSE INFLUENCES IN AREA, if any (e.g. railroad tracks, commercial/industrial properties, unkempt properties, major traffic arteries, etc.)
Residential area of Sidney within easy walking distance to the the town centre with good local amenities. Area consists of mixed quality
single family homes, strata apartments, and newer bareland strata homes. Desirable location which has good market demand. Sidney
continues to experience significant redevelopment with many older homes being replaced with high quality bareland strata units and/or
updated homes, particularity in areas close to the town core. No adverse features observed.

SITE DESCRIPTION
SITE DIMENSIONS: 50' x118' x PAVED ROAD x TELEPHONE x SANITARY SEWER
SITE AREA: 5900 sf SOURCE: BCAA GRAVEL ROAD GAS SEPTIC
TOPOGRAPHY: Level x SIDEWALK x MUNICIPAL WATER x STORM SEWER
CONFIGURATION: Rectangular x CURBS WELL-PRIVATE OPEN DITCH
ZONING: R-2 Single and Two Family Residential x STREET LIGHTS WELL-COMMUNAL
OCP - Res 3 Multi Family Low Density x CABLEVISION
DOES PRESENT USE CONFORM: x YES IF NO, SEE COMMENTS.NO
LANDSCAPING EASEMENTS
DRIVEWAY ELECTRICAL
EXCELLENT FAIR x UTILITY
PRIVATE x SINGLE CONCRETE UNDERGROUND
x GOOD POOR ACCESS
MUTUAL DOUBLE x ASPHALT x OVERHEAD
AVERAGE NONE x Unkn NONE
COMMENT ON ANY POSITIVE/NEGATIVE FEATURES: (e.g. regarding conforming of zoning, effects of easements, etc.)
Subject is located on a level
rectangular lot on Brethour Ave. within easy walking distance to the main business district of Sidney. The site is well landscaped with
lawn, perimeter gardens, raised beds and several mature trees and shrubs, ensuring good privacy. There is a single paved driveway
which provides access to a large double attached garage. Subject conforms to current zoning regulations with no adverse features
observed.

DESCRIPTION OF IMPROVEMENTS - EXTERIOR

ESTIMATED YEAR BUILT: 1976 EFFECTIVE AGE: 25 yrs ESTIMATED REMAINING LIFE (Yrs.) 40 yrs
CONSTRUCTION COMPLETE: x PERCENTAGE COMPLETE: 100% HOLDBACK RECOMMENDED: NA
FLOOR AREA BASEMENT TYPE OF BUILDING DESIGN CONSTRUCTION
SOURCE Inspection FULL x DETACHED ONE-STOREY x WOOD FRAME
MAIN 1,069 PARTIAL SEMI-DETACHED SPLIT-LEVEL BRICK
2nd 650 x CRAWL SPACE ROW/TOWNHOUSE x 1 1/2 STOREY STONE
3rd TOTAL AREA APARTMENT 2-STOREY CONCRETE
TOTAL 1,719 SQ.FT. SQ.M.
x SQ.FT. SQ.M. EXTERIOR FINISH ROOFING MATERIAL OVERALL EXT. CONDITION
WINDOW SASH/GLAZING BRICK VENEER x WOOD SIDING x ASPHALT SHINGLE x GOOD
Aluminum Sash SOLID BRICK ALUMINUM WOOD SHINGLE AVERAGE
Double Pane STONE VENEER VINYL TAR & GRAVEL FAIR
U.F.F.I. APPARENT YES SOLID STONE INSULBRICK POOR
x NO STUCCO 18 yrs APPROX. AGE
DESCRIPTION OF IMPROVEMENTS - INTERIOR
INSULATION FLOORING WALLS CEILINGS FINISH
x CEILING x W-W CARPET x SHEET VINYL PLYWOOD
x WALLS SOFTWOOD x VINYL TILE PLASTER
BASEMENT HARDWOOD CERAMIC x x GYPSUM BOARD
x CRAWL LINOLEUM Laminate
x Parquet
FLOOR PLAN CLOSETS BEDROOMS(#) 3 BATHROOMS(#) 2F OVERALL INT. CONDITION
GOOD GOOD LARGE 2-Pc. GOOD GOOD
x AVERAGE x AVERAGE 3 AVERAGE 1 3-Pc. x AVERAGE x AVERAGE
FAIR FAIR SMALL 1 4-Pc. POOR FAIR
POOR POOR 5-Pc. CUSTOM POOR

Form#: CSA-USPAP 08/97 Page 1 Form produced using ACI software, 800.234.8727 www.aciweb.com
 Client Reference No: File No: 210103
FOUNDATION WALLS PLUMBING LINES ELECTRICAL WATER HEATER HEATING SYSTEM
x POURED CONCRETE x COPPER FUSES GAS FORCED AIR
CONCRETE BLOCK x PVC OR PLASTIC x BREAKERS x ELECTRIC x BASEBOARD
CONCRETE SLAB GALVANIZED HOT WATER
BRICK OR STONE RATED CAPACITY OF MAIN 40 Gal CAPACITY
BREAKERS 100 AMPS Elec FUEL TYPE
BUILT-IN APPLIANCES/EXTRA FEATURES:
STOVE VACUUM CENTRAL AIR SAUNA SOLARIUM x Sprnkler
OVEN GARBAGE DISPOSAL AIR CLEANER WHIRLPOOL x SKYLIGHTS
x DISHWASHER FIREPLACE(S) SECURITY SYSTEM SWIMMING POOL x GARAGE OPENER
BASEMENT FINISHES, UTILITY: Uninspected crawlspace.

GARAGES/CARPORTS: Large double attached garage.

DECKS, PATIOS, OTHER IMPROVEMENT: Deck off the rear plus patio area.
COMMENTS: Building, appearance, quality, condition, services including extras: The subject is a well maintained 70's 1 1/2 storey bungalow that has had
some updating over the past few years. There is a living room, a dining room with parquet flooring and large sunroom off, a 3 pce
bathroom with laundry, a kitchen with eating area and a bedroom. The upper floor provides 2 bedrooms and a 4 pce bathroom. There is a
large attached double garage with workshop area. Subject is zoned R-2 (Single and Two Family) which is a value enhancing feature, with
future development potential. Estimate rental value $1800/month.
ROOM ALLOCATION COST APPROACH
LEVEL: MAIN SECOND THIRD BSMT. SOURCE OF COST DATA: MANUAL x LOCAL CONTRACTOR OTHER
ROOMS: LAND VALUE: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 325,000
ENTRANCE 1 BUILDING COST NEW DEPRECIATED COST
LIVING 1 COST . . .1,719.00
. . . . . . . @$ 150.00 $ 257,850
DINING 1 GARAGE: . . . . . . . . . . . . . . . . . . . . $ 24,000 $
KITCHEN 1 BASEMENT FINISH: . . . . . . . . . . . . . .
FULL BATH 1 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ $
PART BATH OTHER EXTRAS . . . . . . . . . . . . . . . . $ $
BEDROOM 1 2 Site Improvements
............................ $ $ 15,000
FAMILY Sunroom . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ $
LAUNDRY x . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ $
OTHER(S) Deck TOTAL REPLACEMENT COST: . . . . . . . $ 281,850
Garage LESS: ACCRUED DEPRECIATION 35% $ 98,648 $ 183,202
INDICATED VALUE: . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 523,202

VALUE BY THE COST APPROACH (rounded) $ 523,200

DIRECT COMPARISON APPROACH
ITEM SUBJECT PROPERTY COMPARABLE NO. 1 COMPARABLE NO. 2 COMPARABLE NO. 3
DESCRIPTION $ ADJUST. DESCRIPTION $ ADJUST DESCRIPTION $ ADJUST
ADDRESS 2359 Brethour Ave. 10239 Cleveland Rd. 9510 Maryland Dr. 2036 Melville Dr.

Sidney Sidney Sidney Sidney

DATE OF SALE 03/08/2010 02/23/2010 12/04/2009
SALE PRICE 0 500,000 565,000 525,000
SITE SIZE 5900 sf 6384 sf 10863 sf -12,000 8955 sf -9,000
SIZE L.F.A. 1719 sf 1290 sf 21,500 1245 sf 23,700 1143 sf 28,800
AGE/CONDITION 34 Yrs. / Good 23 Yrs. / Good 47 Yrs. / Reno'd -20,000 41 Yrs. / Good
STYLE 1.5 Storey 1 Storey Split Level 1 Storey
RMS/BEDS/BATHS 7 / 3 / 2/0 7 / 3 / 2/0 10 / 4 / 2/0 10 / 4 / 2/0
BASEMENT None None 0 Full/1092 sf -38,200 Full/1118 sf -39,100
GARAGE/PARKING Dble Garage Dble Garage Sngl Garage/Shop 5,000 Sngl Carport 15,000

DOM 32 days 4 days 57 days

AREA Sidney Sidney Sidney Sidney
ADJUSTED VALUES/NET ADJUSTED TOTALS 4.3% 4.3% 521,500 17.5% -7.3% 523,500 17.5% -0.8% 520,700
CONCLUSIONS: Comparables selected offer a good representation of recent sales of homes located in the Sidney area. Adjusted values
provide a good indication of the estimated market value of the subject as viewed on March 9, 2010.

VALUE BY THE DIRECT COMPARISON APPROACH (ROUNDED) $ 522,000

FINAL ESTIMATE OF VALUE/COMMENT ON REASONABLE EXPOSURE TIME: Final value estimate is based on the adjusted values of the
aforementioned comparables. A typical marketing period for this type of property is 15-60 days subject to no unforeseen change in the
real estate market.

COMMENT ON AND ANALYZE ANY KNOWN SALES, LISTING OR OFFER TO PURCHASE ON THE SUBJECT PROPERTY OVER THE PAST YEAR:
(Include source of information.) The subject was purchased March 26, 2007 for $450,000.

AS A RESULT OF MY APPRAISAL AND ANALYSIS IT IS MY OPINION THAT THE MARKET VALUE OF THE SUBJECT PROPERTY AS OF March 9, 2010
IS $ 522,000 THIS REPORT WAS COMPLETED ON March 10, 2010
x TITLE PAGE AREA CALCULATIONS x MAP ADDENDUM ENVIRONMENTAL ADDENDUM x CERTIFICATION
REPORT PROFILE x SKETCH ADDENDUM x PHOTO ADDENDA x SCOPE OF APPRAISAL SCHEDULE A/NARRATIVE
TRANSMITTAL LETTER COMPS 4-5-6 NARRATIVE ADDENDUM USPAP DEPARTURE DISCLOSURE INVOICE FOR SERVICES
DESIGNATION DESIGNATION
SUPERVISOR
APPRAISER

SIGNATURE BA, CRA SIGNATURE

NAME Gary Bridge INSPECTED PROP. (DATE) NAME INSPECTED PROP. (DATE)
March 9, 2010
Form#: CSA-USPAP 08/97 Page 2 Form produced using ACI software, 800.234.8727 www.aciweb.com

Beswick Professional Appraisal

 Client Reference No.: File No.: 210103
CERTIFICATION AND STATEMENT OF LIMITING CONDITIONS - PAGE 1

DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open
m a r k e t u n d e r a l l c o n d i t i o n s r e q u i s i t e t o a f a i r s a l e , t h e b u y e r a n d s e l l e r , e a c h a c t i n g p r u d e n t l y , k n o wl e d g e a b l y
and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified
date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated;
( 2 ) b o t h p a r t i e s a r e w e l l i n f o r m e d o r we l l a d v i s e d , wi t h e a c h a c t i n g i n wh a t h e c o n s i d e r s h i s o wn b e s t i n t e r e s t ;
(3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in Canadian dollars or in
t e r m s o f f i n a n c i a l a r r a n g e m e n t s c o m p a r a b le t h e r e t o ; a n d ( 5 ) t h e p r i c e r epresents the normal consideration for the
property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

CERTIFICATION AND STATEMENT OF LIMITING CONDITIONS

CONTINGENT AND LIMITING CONDITIONS: T h e c e r t i f i c a t i o n t h a t a p p e a r s i n t h e a p p r a isal report is subject

to the following conditions:

1. Because market conditions, including economic, social and political factors change rapidly and, on occasion, without
wa r n i n g , t h e m a r k e t v a l u e e s t i m a t e e x p r e s s e d as of the date of this appraisal cannot be relied upon as of any other
d a t e e x c e p t wi t h f u r ther advice from the appraiser confirmed in writing.

2. No responsibility is assumed for matters of a legal nature that affect either the property being appraised or the title to it.
It has been assumed that the title is good and marketable and, therefore, no opinion is rendered about the title. The subject
p r o p e r t y m u s t c o m p l y wi t h g o v e r n m e n t r e g u l a t i o n s , i n c l u d i n g zoning, building code and health regulations and, if it
doesn't comply, its non-compliance may affect market value. To be certain of compliance, futher investigation may be
necessary. The property is appraised on the basis of it being under responsible ownership.

3 . No s u r v e y o f t h e p r o p e rty has been made. Any sketch that is provided in the appraisal report shows approximate
d i m e n s i o n s a n d i s i n c l u d e d o n l y t o a s s i s t t h e r e a d e r o f the report in visualizing the property and understanding the
appraiser's interpretation as to its size.

4. This report is completed on the basis that testimony or appearance in court is not required as a result of this appraisal
unless specific arrangements to do so have been made beforehand. Such arrangements will include, but not necessarily
b e l i m i t e d t o , a d e q u a t e t i m e t o r e v i ew the appraisal report and data related thereto and the provision of appropriate
compensation.

5. Unless otherwise stated in the appraisal report, there are no known unapparent or hidden conditions of the property
(including but not limited to its soils, physical structure, mechanical and other operating system, its foundation, etc.) or
a d v e r s e e n v i r o n m e n t a l c o n d i t i o n s ( o n i t o r a n e ig h b o u r i n g p r o p e r t y , i n c l u d i n g t h e p r e s e n c e o f h azardous wastes,
t o x i c s u b s t a n c e s , e t c . ) t h a t wo u l d m a k e t h e p r o p e r t y more or less valuable. It has been assumed that there are no
s u c h c o n d i t i o n s u n l e s s t h e y we r e observed at the time of inspection or became apparent during the normal research
involved in completing the appraisal. The attached report should not be construed as an environmental audit or a detailed
p r o p e r t y co n d it io n r e p o r t , a s su ch r e p o r ting is beyond the scope of this report and/or the qualifications of the
appraiser. Responsibility is not accepted for any such unapparent or hidden conditions that do exist, or for any research,
t e s t i n g o r e n g i n e e r i n g t h a t m i g h t b e r e q u i r e d t o discover whether such conditions exist.

6 . I n f o r m a t i o n , e s t i m a t e s , a n d o p i nions that have been expressed in the appraisal report are obtained from sources
considered to be reliable and they are believed to be true and correct. No responsibility is assumed for the accuracy of such items
that were furnished by other parties.

7. The opinions of value and other conclusions contained herein assume satisfactory completion of any work remaining to
be completed in a good and workmanlike manner. Further inspection may be required to confirm completion of such work.

8. The contents of this report are considered confidential and will not be disclosed by the appraiser to any party except as
provided for in the Uniform Standards of Professional Appraisal Practice, the client, and/or when properly entered into evidence
of a duly qualified judicial or quasi-judicial body.

9. The appraiser and supervisory appraiser must provide his/her written consent before all (or any part) of the content
of the appraisal report can be used for any purposes by anyone except: the client specified in the report and, where the
client is the mortgagee, its insurer and the borrower, if he/she paid the appraisal fee. The author's written consent and
approval must also be obtained before the appraisal (or any part of it) can be conveyed by anyone to any other parties,
including mortgagees other than the client and the public through prospectus, offering memo, advertising, public relations,
n e ws, sales or other media.

Generic Certification Page 1 of 2 Form produced using ACI software, 800.234.8727 www.aciweb.com
 Client Reference No.: File No.: 210103
CERTIFICATION AND STATEMENT OF LIMITING CONDITIONS - PAGE 2

APPRAISER'S CERTIFICATION: T h e Ap p raiser certifies and agrees that:

1. The subject market area has been researched and a minimum of three recent sales of properties have been selected that are
the most similar and proximate to the subject property for consideration in sales comparison analysis and a dollar adjustment
have been made where appropriate to reflect the market reaction to those items of significant variation. If a significant
i t e m i n a c o m p a r a b l e p r o p erty is superior to, or more favourable than, the subject property, a negative adjustment is
made to reduce the adjusted sales price of the comparable and, if a significant item in a comparable property is inferior
t o , o r l e s s f a v o u r a b l e t h a n t h e s u b j e c t p r o p e r t y , a p o s itive adjustment is made to increase the adjusted sales price
o f t h e c o m p a r able.

2. All factors known to the appraiser (and to the extent that the data permits) that have an impact on value have been taken
into consideration to the extent felt necessary in rendering a considered opinion of value. No significant information has
b e e n k n o wi n g l y wi t h h e l d f r om the appraisal report and it is believed to the best of my knowledge, that all statements
a n d i n f o r m a t i o n i n t h e a p p r a i s a l r e p o r t a r e t r ue and correct.

3. Only my personal, unbiased, and professional analysis, opinions, and conclusions are stated in the appraisal report. Included on
this form are all contingent and limiting conditions affecting the analysis, opinions, and conclusions, whether they were imposed
by the terms of the assignment or by the appraiser.

4. I have no past, present or prospective interest in the property that is the subject to this report, and I have no present or prospective
personal interest in the property or bias with respect to the parties involved.

5. The opinion of value stated within this report does not result from a requirement to report a predetermined value or direction
i n value that favours the cause of the client or any related party, the attainment of a specific result, or the occurrence
of a subsequent event in order to receive the compensation and/or employment for perfoming the appraisal. The reported
value is not based on a requested minimum valuation, a specific valuation, or the need to approve a specific mortgage loan.

6. This appraisal report, its analyses and all conclusions herein, have been prepared in conformity with the requirements of the
Uniform Standards of Professional Appraisal Practice that was adopted by the Appraisal Standards Board of the Appraisal Foundation,
with the exception of the departure provision of those Standards, which does not apply. It is acknowledged that an estimate of a
reasonable time for exposure in the open market is a condition in the definition of market value and the estimate developed is
consistent with the marketing time noted in the appropriate section of this report unless otherwise stated in the reconciliation section

7. The interior and exterior of the subject property were personally inspected on the date shown in the attached report. It is
h e r e b y certified that any apparent or known adverse conditions have been noted herein, in the subject improvements,
o n t h e s u b j e c t s i t e , o r o n a n y s i t e , wi t h i n t h e i m m e d i a t e v i c i n i t y o f t h e subject property which were apparent as of
t h e d a te of inspection and that adjustments have been made for these adverse conditions in the analysis of the
property value to the extent that market evidence was available to support them.

8. All conclusions and opinions about the real estate were personally prepared as same are set forth in the appraisal report. If
there was reliance on significant professional assistance from any individual or individuals in the performance of the appraisal
or the preparation of the appraisal report, such individual(s) have been named herein including the disclosure of specific tasks
performed by them. No authorization has been given to anyone to make a change to any item in the report; therefore, if an unauthorized
change is made to the appraisal report, no responsibility for such changes is assumed.

9. As of the date of this report, the appraiser and supervisory appraiser have fulfilled the requirements of the recertification
program, in accordance with the Bylaws and Regulations of the professional appraisal organization with which they are affiliated
and are hereby noted as designated members of such organization.

SUPERVISORY APPRAISER'S CERTIFICATION: If a supervisory appraiser signed the appraisal report, he or

she certifies and agrees that: direct supervision of the appraiser who prepared the appraisal report was performed and that the
supervisor participated in the development of the estimate of market value in this appraisal report, reviewed the appraisal report,
agree with the statements and conclusions of the appraiser, and take full responsibility for the appraisal report.

PROPERTY ADDRESS IDENTIFICATION

Address 2359 Brethour Ave.
City Sidney Pr. BC Postal Code V8L 2A6
Legal Description Plan 1015, Lot 7, Blk 3, LD 40, Sec 12, Range 4E PID #001-516-906No Title Search Performed
Final Estimated Market Value as of March 9, 2010 is $ 522,000
(effective date of appraisal)
APPRAISER: SUPERVISORY APPRAISER (if applicable):

Signature: Signature:
Name: Gary Bridge Name:

Inspected Property: March 9, 2010 Yes: X No: Inspected Property: Yes: No:
Date Signed: March 10, 2010 Date Signed:
Designation: BA, CRA Designation:
Recertified: Yes: X No: Recertified: Yes: No:

Generic Certification Page 2 of 2 Form produced using ACI software, 800.234.8727 www.aciweb.com
Beswick Professional Appraisal
Client Reference No.: File No.: 210103
SCOPE OF THE APPRAISAL

The Scope of the Appraisal contains the necessary research and analysis to prepare a report in accordance with
its intended use. The following are comments which describe the extent of the procedures used in the collection,
confirmation and reporting of the information involved in preparing this report.

GENERAL: The scope of the appraisal encompasses the due diligence undertaken by the appraiser (consistent with
the terms of reference from the client, the purpose and intended use of the report) and the necessary research and
analysis to prepare a report in accordance with the Canadian Uniform Standards of Professional Practice (CUSPAP)
of the Appraisal Institute of Canada. The following comments describe the extent of the process of collecting,
confirming and reporting data and its analysis, describe relevant procedures and reasoning details supporting the
analysis, and provide the reason for the exclusion of any usual valuation procedures. When preparing an appraisal
for lending purposes, appraisers do not investigate if the prospective loan and applicant satisfy prudent loan
underwriting criteria. We assume no responsibility for loans made where the borrower lacks the ability or motivation
to repay the loan, or where the lender has not followed prudent lending practices. When we authorize a lender to rely
on this report, we grant such authorization subject to the lender completing a thorough due diligence investigation
that reasonably concludes that the borrower has the intention and capacity to repay the loan.

VALUATION: There are three traditional valuation methods which may be utilized to estimate the market value of
any given property: the Direct Sales Comparison Approach (DSCA), the Income Approach, and the Cost Approach
(CA). Most reliance is placed on the DSCA when valuing a single-family home as this is a good indicator of market
activity. Depending upon a wide range of factors, a particular approach aforementioned may be excluded from the
methodology applied. Furthermore, the construction cost estimates contained herein were not prepared for
insurance purposes and are invalid for that use. The CA is also not applicable when appraising strata dwellings.

ADJUSTMENT: The best available comparable sales have been selected with respect to date of sale, location, size,
age, condition, style and special features of the improvements. A larger adjustment may be deemed appropriate if
the subject property is atypical, and/or there has been a relatively low volume of recent sales to select from, and/or
from the heterogeneous nature of the local residential real estate market. The integrity of the comparable sales is
maintained by reasonable and appropriate adjustments. If any adjustments are made, the comparable sales still
accurately reflect the market value estimate for the subject.

DATA GATHERING: The analysis set out in this report relied on written and verbal information obtained from the
following sources including but not limited to: personal inspection and photography of the subject property;
Matrix/MLS system of the Victoria Real Estate Board (VREB); exclusive or private sales data; cost manuals;
contractor's estimates; building residual analyses; in-office files; on-site inspection; information from owner(s),
realtor(s), and/or builder(s); maps, site plans, surveys, measurement reports, certificates of title, and previous
appraisal(s); British Columbia Assessment; and municipal authorities. The analysis set out in this report relied on
the aforementioned information sources, which we assume reliable. Unless otherwise stated herein, we did not
verify client supplied information, which we assumed to be correct.

TITLE: A title search was not performed and the affects of any easements, rights of way, or other encumbrances
were not investigated and are beyond the scope of this report.

TECHNICAL: We did not complete technical investigations, such as: a detailed inspection or engineering review of
the structure, roof or mechanical systems; an environmental review of the property; a site or building survey; and an
investigation of soil bearing qualities.

SITE: For the purpose of the appraisal, the site size is assumed to be correct. The subject improvements are
assumed to be constructed within the boundaries of the site. A current legal survey should be obtained to confirm
the location of the same and site size. Should any of the improvements not be fully located within the confines of
the subject site and site size found otherwise, the value estimate could be subject to change.

MEASUREMENTS: All measurements obtained from exterior sources, such as, but not limited to building plans,
professional measurement companies, surveys, and realtors are assumed to be correct. Should this information not
be correct, the value estimate of value could be subject to change.

TIME/DATE OF SALE: Every effort has been made to secure comparable sales within the 90 day period
immediately preceding the effective date of this report. Comparables selected will reflect sales deemed most
comparable to the subject property. If the time frame is expanded, this has been done to recite sales which have
characteristics most similar to the subject, and to provide the most accurate indicators of value; this being a
common and necessary appraisal practice in the area.

UFFI: Upon inspection there were no apparent signs of UFFI installation. This appraisal assumes none is present.

FIRE, SMOKE, CARBON MONOXIDE EQUIPMENT: The appraiser did not inspect the premises for the detection or
condition of smoke or fire detection systems, or for the presence of carbon monoxide detectors. The appraiser takes
no responsibility whatsoever or warrants any compliance for the lack of or condition of detection devices that may be
located on the premises.

DIGITAL SIGNATURE: This appraisal report may have been signed with a password-protected digital signature.
Electronically affixing a signature to a report carries the same level of authenticity and responsibility as an ink
signature on a paper copy report. The appraiser certifies that safeguards for the protection and affixation of the
signature dictated by the CUSPAP have been observed.

DIGITAL IMAGES: Digitized images in the report are unaltered from their original likeness. Digital images may have
been modified for formatting, brightness or resolution to reduce file size or enhance readability. Images of
comparables are assumed to be correct.

Form #: CSA-SCOPE 09/97 Form produced using ACI software, 800.234.8727 www.aciweb.com
Beswick Professional Appraisal
 SUBJECT PROPERTY PHOTO ADDENDUM
Borrower: File No.: 210103
Property Address: 2359 Brethour Ave. Case No.:
City: Sidney Prov.: BC P.C.: V8L 2A6
Lender: Mr. Fraser Smith

FRONT VIEW OF
SUBJECT PROPERTY

Appraised Date: March 9, 2010

Appraised Value: $ 522,000

REAR VIEW OF
SUBJECT PROPERTY

STREET SCENE
Borrower: File No.: 210103
Property Address: 2359 Brethour Ave. Case No.:
City: Sidney Prov.: BC P.C.: V8L 2A6
Lender: Mr. Fraser Smith

Living Room

Dining Room

Kitchen
 Floorplan
Borrower: File No.: 210103
Property Address: 2359 Brethour Ave. Case No.:
City: Sidney Prov.: BC P.C.: V8L 2A6
Lender: Mr. Fraser Smith

475 Downey Road, Sidney BC V8L 5M7, (250) 656-5990

 PLOT MAP
Borrower: File No.: 210103
Property Address: 2359 Brethour Ave. Case No.:
City: Sidney Prov.: BC P.C.: V8L 2A6
Lender: Mr. Fraser Smith

475 Downey Road, Sidney BC V8L 5M7, (250) 656-5990

 LOCATION MAP
Borrower: File No.: 210103
Property Address: 2359 Brethour Ave. Case No.:
City: Sidney Prov.: BC P.C.: V8L 2A6
Lender: Mr. Fraser Smith

475 Downey Road, Sidney BC V8L 5M7, (250) 656-5990