The Company regrets to advise that on Friday, September 5, 2008, Humber Valley Resort Corporation (HVRC) sought and obtained protection from its creditors under the Companies' Creditors Arrangement Act (CCAA). The CCAA is a Canadian federal Act that gives financially troubled corporations the opportunity to restructure their affairs through a formal plan of arrangement. This process was begun with a formal application to the Supreme Court of Newfoundland and Labrador where HVRC applied for protection under the CCAA.

To read full release go to www.humbervalley.com/hvr-news.asp

The court issued an Initial Order granting HVRC protection from its creditors to allow for the preparation of the plan of arrangement. Once the plan has been prepared, the Company will ask its creditors and the Court to approve it. The Company did not make this decision lightly and sincerely regrets the implications of the process on its stakeholders. However, we are confident that this action will result in the best solution for our property owners, visitors, suppliers and employees in the long term.

We are diligently working to prepare our plan showing how we may move forward and deliver a sustainable resort that is financially stable, which we fully intend to do. Within this process, claims may be submitted to the court appointed Monitor. Ernst & Young Inc. have been appointed as our Monitor. The Monitor has made arrangements to post documents specific to these proceedings at the following website address: http://documentcentre.eycan.com/

This action has resulted in changes to the operation of the resort including the closing of rental accommodations, food and beverage, and golf operations. Notification will be made, in the event that any or all of these services are recommenced in the future.

We appreciate the patience of our property owners, customers and business partners as we work through these difficult times.