Regina Golf Dome

Graham Hindson, Lesley Neilson, Michael Woeller

July 3, 2009

Our Market

• Saskatchewan has the highest golf participation rate in Canada at 29.2%

• Population of ‘core golfers’ increased by 47.5% from 2001 to 2006

• Temperatures below 5 degrees 7 months of the year

Facts & Figures

• Population of Regina ~ 208,000

• GDP growth of 1.6% higher than national average in last six years

Competitive Environment

• Two golf simulators operating in Regina

• No indoor driving range facilities

• Nowhere for the serious golfer to go to improve their game

Our Facility

Hitting the MarketImage Partnerships Advertising

Location

Print ads

Promotions

Website

All about the numbers…

Capital Structure:

– $400,000 term loan

– $300,000 equity financing in place

– Seeking an additional $200,000 in equity

All about the numbers…

Year 1 Year 2 Year 3 Year 4 Year 5

Net Income 10,744 217,344 254,523 291,408 321,185

Cash From Operations 102,007 284,083 317,315 350,715 377,290

Cash Flow to Equity 26,507 184,083 174,315 250,715 334,290

All about the numbers…

NPV (@ 20%) $421,228

IRR to Equity 32.4%

Dividends (Y2 onwards) $150,000 +

All about the numbers…

Sensitivity to Revenue Fluctuations:

Scenario IRR NPVCash Flow to

EquityOperating Cash Flow Income

20% Price Increase 43.80% 1,047,163 293,437 385,737 318,496 10% Price Increase 38.60% 734,196 243,710 336,010 268,768 Base Case 32.40% 421,228 193,982 286,282 219,041 10% Price Decrease 24.80% 108,261 144,254 263,554 169,313 20% Price Decrease 14.70% (204,706) 94,527 186,827 119,586

5 Year Average

All about the numbers…

Breakeven Analysis:

Scenario Annually Monthly Weekly Daily Hourly

Operating Cash Flow Breakeven 11,750 979 225 32 3.4 Cash Flow to Equity Breakeven 15,295 1,275 293 42 4.4

Year 1 16,199 1,350 311 44 4.6 Year 2 22,248 1,854 427 61 6.4 Year 3 23,638 1,970 453 65 6.8 Year 4 25,029 2,086 480 69 7.2 Year 5 26,419 2,202 507 72 7.6

Customers

Thank You