Latest AssumptionsIncome StatementRevenue11374189100%ExpensesMaterials176599315.53%Salaries and wages538563347.35%Benefits10360209.11%Advertising, promotion3017402.65%Travel1018240.90%Cleaning652710.57%Consumable supplies1860091.64%Insurance873060.77%3rd party rent1426051.25%Property taxes854810.75%Utilities2697272.37%Office supplies688510.61%Telephone and computers1125750.99%Professional fees1990831.75%Bank charges and interest72410.06%Vehicle costs777150.68%Capital tax00.00%Facilities repairs and maintenance4259453.74%Operating expenses1031901990.72%Income before amortization, financing, miscellaneous expenses and taxes10551709.28%0.00%Amortization of capital assets3863393.40%(Gain) on disposal of capital assets00.00%Intercompany rent00.00%Royalties00.00%Management expenses00.00%Reorganization expenses00.00%Extraordinary items00.00%Amortization of deferred finance charges00.00%Interest on long term debt225674612013Income before taxes443157Income taxes7350016.59%Net income369657

AssumptionsIncome StatementAssumptions2010 A2011 A2012 E2013 E2014 E2015 E2016 ERevenuewill remain flat for 2011 with no new impetus to the busines24.3%-1.0%1%0%0%0%0%will increase slightly - attributable to DorsetCost of salesMaterials% of Revenue10.6%15.5%15.5%14.4%14.7%15.0%15.3%Salaries and wages% of Revenue42.6%47.3%47.3%48.0%48.2%48.4%48.6%Gross Profit46.8%37.1%37.5%38.0%37.5%37.0%36.5%

ExpensesBenefits% of Revenue7.8%9.1%9.1%9.1%9.1%9.1%9.1%Advertising, promotion% of Revenue2.5%2.7%2.7%2.7%2.7%2.7%2.7%Travel% of Revenue0.8%0.9%0.9%0.9%0.9%0.9%0.9%Cleaning% of Revenue0.5%0.6%0.6%0.6%0.6%0.6%0.6%Consumable supplies% of Revenue1.1%1.6%1.6%1.6%1.6%1.6%1.6%Insurance% of Revenue0.6%0.8%0.8%0.8%0.8%0.8%0.8%3rd party rent% of Revenue0.3%1.3%1.3%1.3%1.3%1.3%1.3%Property taxesConstant0.6%0.8%0.8%0.8%0.8%0.8%0.8%Utilities% of Revenue1.9%2.4%2.4%2.4%2.4%2.4%2.4%Office supplies% of Revenue1.0%0.6%0.6%0.6%0.6%0.6%0.6%Telephone and computers% of Revenue0.7%1.0%1.0%1.0%1.0%1.0%1.0%Professional fees% of Revenue0.9%1.8%1.8%1.8%1.8%1.8%1.8%Bank charges and interest% of Revenue0.1%0.1%0.1%0.1%0.1%0.1%0.1%Vehicle costs% of Revenue0.5%0.7%0.7%0.7%0.7%0.7%0.7%Capital tax% of Revenue0.0%0.0%0.0%0.0%0.0%0.0%0.0%Farm Expenses% of Revenue1.2%0.0%0.0%0.0%0.0%0.0%0.0%Product DevelopmentOne time cost0.2%0.0%0.0%0.0%0.0%0.0%0.0%Facilities repairs and maintenance% of Revenue2.6%3.7%3.7%3.7%3.7%3.7%3.7%Total23.2%27.8%27.8%27.8%27.8%27.8%27.8%

Income before amortization, financing, miscellaneous expenses and taxes23.6%9.3%9.4%9.9%9.3%8.8%8.3%

Amortization of capital assets% of Revenue3.2%3.4%3.4%3.4%3.4%3.4%3.4%(Gain) on disposal of capital assetsConstant0.0%0.0%0.0%0.0%0.0%0.0%0.0%Intercompany rentConstant0.0%0.0%0.0%0.0%0.0%0.0%0.0%RoyaltiesConstant0.0%0.0%0.0%0.0%0.0%0.0%0.0%Management expensesConstant0.0%0.0%0.0%0.0%0.0%0.0%0.0%Reorganization expensesConstant-0.0%0.0%0.0%0.0%0.0%0.0%0.0%Extraordinary itemsConstant0.0%0.0%0.0%0.0%0.0%0.0%0.0%Amortization of deferred finance chargesConstant0.0%0.0%0.0%0.0%0.0%0.0%0.0%

Income before taxesIncome taxes3.7%16.6%16.6%16.6%16.6%16.6%16.6%Net income

Balance Sheet Assumptions2009 A2010 A2011 E2012 E2013E2014E2015ECurrent AssetsBankAccounts receivable% of Revenue0.4%0.8%0.8%0.8%0.8%0.8%0.8%Inventories% of Revenue1.0%1.0%1.0%1.0%1.0%1.0%1.0%Due from JPCConstantPrepaid expenses% of Revenue0.7%1.3%1.3%1.3%1.3%1.3%1.3%

Capital AssetsCostbased on current year projections and no investment in 20120.9%1.5%0.3%0.0%0.0%0.0%0.0%Amortizationbased on previous years' trend-3.4%-3.4%-3.4%-3.4%-3.4%-3.4%

Capital Projects in ProgressConstant0.0%0.0%0.0%0.0%0.0%Other AssetsTrademarksConstantAdvance to Corcair FarmsConstantAdvance to CorcorvestConstantAdvance to JPC Holdings Inc.ConstantAdvance to 1417335 Ontario Inc.ConstantAdvance to CorservicesConstantCSV Life InsuranceConstantInvestment in KCU sharesConstantDeferred finance chargesConstant

Total Assets

Liabilities and EquityCurrent LiabilitiesOperating lineAccounts payable & accrued liabilities% of Revenue9.4%10.9%10.9%10.9%10.9%10.9%10.9%Due to JPCConstantGovernment remittances payableConstantDeposits and gift certificates% of Revenue15.4%17.7%17.7%17.7%17.7%17.7%17.7%Corporate taxes payableConstant

Long Term LiabilitiesVehicle loanssee debt pmtOther loans payablesee debt pmtBDCsee debt pmtCUCO/KCU/Sudburysee debt pmtAdvance from 926715 Ontario I ConstantLoan Payable - 926715 Ontario ConstantLoan payable - CorservicesConstant

Shareholder's EquityShare capitalConstantRetained EarningsCurrent earningsTotal Shareholder's EquityTotal Liabilities and Shareholder's Equity

Debt paymentLoan Repayment Schedule2011Repayment 20122012Repayment 20132013Repayment 20142014Repayment 20152015Repayment 20162016Vehicle loansTerm Loan 1Principal$6,674$7,251$5,167$5,851$6,357Interest$1,234$657$2,741$2,057$1,551Total$14,266$7,908$7,592$7,908$31,688$7,908$23,780$7,908$17,929$7,908$11,571

Term Loan 2$0$0$0$0$0$0$0$0$0$0$0

Term Loan 3$20,180$17,208$2,972$2,972$37,292$17,208$20,084$17,208$2,876$2,876$37,292

Term Loan 4$0$0$0$0$0$0$0$0$0$0$0Total$34,446$25,116$10,564$10,880$68,980$25,116$43,864$25,116$20,805$10,784$48,863

Other loans payableconstant$125,057$125,057$125,057$125,057$125,057$125,057includes leasesno further infoprovided

BDCPrincipal$160,500$160,500$160,500$160,500$160,500Interest$61,950$56,230$59,363$69,528$65,650Total$1,652,000$222,450$1,491,500$216,730$1,331,000$219,863$1,170,500$230,028$1,010,000$226,150$849,500

CUCO/KCU/SudburyPrincipal$173,220$173,220$173,220$173,220$173,220Interest$94,378$85,160$85,048$91,996$84,405Total$1,715,970$267,598$1,542,750$258,380$1,369,530$258,268$1,196,310$265,216$1,023,090$257,625$849,870

Total Interest Payment$157,562$142,046$147,151$163,581$151,606Total Principal Payment$357,602$343,943$356,095$356,779$342,953Prime - 20123.00%Prime - 20133.02%Prime - 20143.71%Prime - 20155.19%Prime - 20165.75%

ISIncome Statement2009 A2010 A2011 A2012 E2013 E2014 E2015 E2016 ERevenue$9,240,002$11,486,503$11,374,189$11,487,931$11,487,931$11,487,931$11,487,931$11,487,931

Cost of salesMaterials$1,258,872$1,219,454$1,765,993$1,783,653$1,654,262$1,688,726$1,723,190$1,757,653Salaries and wages$4,474,389$4,896,794$5,385,633$5,439,489$5,514,207$5,537,183$5,560,159$5,583,134Gross Profit$3,506,741$5,370,255$4,222,563$4,264,789$4,319,462$4,262,022$4,204,583$4,147,143

ExpensesBenefits$718,301$899,350$1,036,020$1,046,380$1,046,380$1,046,380$1,046,380$1,046,380Advertising, promotion$333,135$283,778$301,740$304,757$304,757$304,757$304,757$304,757Travel$74,457$89,190$101,824$102,842$102,842$102,842$102,842$102,842Cleaning$54,896$53,191$65,271$65,924$65,924$65,924$65,924$65,924Consumable supplies$96,829$123,685$186,009$187,869$187,869$187,869$187,869$187,869Insurance$70,516$69,105$87,306$88,179$88,179$88,179$88,179$88,1793rd party rent$33,777$34,140$142,605$144,031$144,031$144,031$144,031$144,031Property taxes$82,567$71,787$85,481$86,336$86,336$86,336$86,336$86,336Utilities$207,829$215,326$269,727$272,424$272,424$272,424$272,424$272,424Office supplies$85,474$113,598$68,851$69,540$69,540$69,540$69,540$69,540Telephone and computers$92,054$83,344$112,575$113,701$113,701$113,701$113,701$113,701Professional fees$82,259$107,471$199,083$201,074$201,074$201,074$201,074$201,074Bank charges and interest$35,476$9,826$7,241$7,313$7,313$7,313$7,313$7,313Vehicle costs$66,976$57,853$77,715$78,492$78,492$78,492$78,492$78,492Capital tax$5,310$0$0$0$0$0$0$0Farm Expenses$0$132,521$0$0$0$0$0$0Product Development$0$20,759$0$0$0$0$0$0Facilities repairs and maintenance$301,480$295,897$425,945$430,204$430,204$430,204$430,204$430,204Total$2,341,336$2,660,821$3,167,393$3,199,067$3,199,067$3,199,067$3,199,067$3,199,067

Income before amortization, financing, miscellaneous expenses and taxes$1,165,405$2,709,434$1,055,170$1,065,722$1,120,395$1,062,955$1,005,516$948,076

Amortization of capital assets$388,063$373,101$386,339$390,202$390,202$390,202$390,202$390,202(Gain) on disposal of capital assets$7,834$0$0$0$0$0$0$0Intercompany rent$0$0$0$0$0$0$0$0Royalties$0$0$0$0$0$0$0$0Management expenses$0$0$0$0$0$0$0$0Reorganization expenses$0($2,187)$0$0$0$0$0$0Extraordinary items$0$0$0$0$0$0$0$0Amortization of deferred finance charges$29,110$0$0$0$0$0$0$0Interest on long term debt$269,808$253,972$225,674$157,562$142,046$147,151$161,524$150,055

Income before taxes$470,590$2,084,548$443,157$517,957$588,147$525,602$453,789$407,819Income taxes$0$77,937$73,500$85,906$97,547$87,174$75,263$67,639Net income$470,590$2,006,611$369,657$432,051$490,599$438,428$378,526$340,180Net income growth16.9%13.6%-10.6%-13.7%-10.1%CAGR-4.7%

BSBalance Sheet2010 A2011 A2012 E2013 E2014 E2015 E2016 ECurrent AssetsBank$640,471$382,577$840,386$1,448,072$1,920,055$2,334,193$2,761,103Accounts receivable$47,433$90,454$91,359$91,359$91,359$91,359$91,359Inventories$111,167$111,436$112,550$112,550$112,550$112,550$112,550Due from JPC$0$0$0$0$0$0$0Prepaid expenses$82,198$148,000$149,480$149,480$149,480$149,480$149,480$881,269$732,467$1,193,775$1,801,461$2,273,444$2,687,582$3,114,491Capital AssetsCost$11,134,833$11,368,658$11,601,548$11,601,548$11,601,548$11,601,548$11,601,548Accumulated Amortization($4,587,587)($4,968,147)($5,356,600)($5,748,991)($6,141,382)($6,533,773)($6,926,164)$6,547,246$6,400,511$6,244,948$5,852,557$5,460,166$5,067,775$4,675,384Capital Projects in Progress$72,718$198,784$0$0$0$0$0Other AssetsTrademarks$13,721$22,323$22,323$22,323$22,323$22,323$22,323Advance to Corcair Farms$0$0$0$0$0$0$0Advance to Corcorvest$873,834$0$0$0$0$0$0Advance to JPC Holdings Inc.$4,373$5,168$5,168$5,168$5,168$5,168$5,168Advance to 1417335 Ontario Inc.$0$0$0$0$0$0$0Advance to Corservices$0$0$0$0$0$0$0CSV Life Insurance$45,067$51,217$51,217$51,217$51,217$51,217$51,217Investment in KCU shares$4,783$6,509$6,509$6,509$6,509$6,509$6,509Deferred finance charges$0$0$0$0$0$0$0Incorporation expense$0$5,418$5,418$5,418$5,418$5,418$5,418$1,014,496$289,419$90,635$90,635$90,635$90,635$90,635Total Assets$8,443,011$7,422,397$7,529,358$7,744,653$7,824,245$7,845,992$7,880,510

Liabilities and EquityCurrent LiabilitiesOperating line$0$0$0$0$0$0$0Accounts payable & accrued liabilities$1,085,398$1,237,976$1,250,356$1,250,356$1,250,356$1,250,356$1,250,356Due to JPC$160,177$30,184$30,184$30,184$30,184$30,184$30,184Government remittances payable$132,954$63,238$63,238$63,238$63,238$63,238$63,238Deposits and gift certificates$1,766,880$2,013,263$2,033,396$2,033,396$2,033,396$2,033,396$2,033,396Corporate taxes payable$0$0$0$0$0$0$0$3,145,409$3,344,661$3,377,173$3,377,173$3,377,173$3,377,173$3,377,173Long Term LiabilitiesVehicle loans$68,817$34,446$10,564$68,980$43,864$20,805$48,863Other loans payable$98,229$125,057$125,057$125,057$125,057$125,057$125,057BDC$1,812,500$1,652,000$1,491,500$1,331,000$1,170,500$1,010,000$849,500CUCO/KCU/Sudbury$2,064,311$1,715,970$1,542,750$1,369,530$1,196,310$1,023,090$849,870Advance from 926715 Ontario I $0$0$0$0$0$0$0Loan Payable - 926715 Ontario $0$0$0$0$0$0$0Loan payable - Corservices$0$0$0$0$0$0$0$4,043,857$3,527,473$3,169,871$2,894,567$2,535,731$2,178,952$1,873,290Shareholder's EquityShare capital$444$403$403$403$403$403$403Retained Earnings($753,310)($16,404)$549,860$981,910$1,472,510$1,910,938$2,289,464Current earnings$2,006,611$566,263$432,051$490,599$438,428$378,526$340,180Total Shareholder's Equity$1,253,745$550,263$982,313$1,472,913$1,911,341$2,289,867$2,630,046Total Liabilities and Shareholder's Equity$8,443,011$7,422,397$7,529,358$7,744,653$7,824,245$7,845,992$7,880,510

Balance check$0$0$0$0$0$0$0

D/E Ratio 13.812.46.64.33.12.42.0DSC1.372.072.682.101.942.08

CFSCash Flow Statement2010 A2011 A2012 E2013 E2014 E2015 E2016 E

Operating ActivitiesNet income (loss)$369,657$432,051$490,599$438,428$378,526$340,180Add items not involving cashAmortization and depreciation$386,339$388,453$392,391$392,391$392,391$392,391(Increase)/Decrease in Current Assets($98,602)($3,499)$0$0$0$0Increase/(Decrease) in Current Liabilities$209,776$32,512$0$0$0$0Cash Flow Provided by Operations$867,170$849,517$882,990$830,819$770,917$732,571

Investing ActivitiesPurchase of Trademarks($8,602)$0$0$0$0$0Investment in Affiliated Companies($1,726)$0$0$0$0$0Decrease/(Increase) in CSV of Life Insurance($6,150)$0$0$0$0$0Decrease/(Increase) in Amt Due from Related Parties$0$0$0$0$0$0Purchase of Property/Plant/Equipment($365,670)($34,106)$0$0$0$0Proceeds from Sale of Property/Plant/Equipment$0$0$0$0$0$0Cash Flow Provided/(Used) in Investing Activities($382,148)($34,106)$0$0$0$0

Financing ActivitiesIncrease/(Decrease) Amts Due to Related Parties($795)$0$0$0$0$0Increase/(Decrease) In Bank/ Other Debt($700,173)$0$0$0$0$0Repayment of Long Term Debt$0($357,602)($275,304)($358,836)($356,779)($305,661)Purchase of common Shares on Redemption$0$0$0$0$0$0Excess of Share Redemption amount over PUC($74,860)$0$0$0$0$0Issuance of Common Shares$0$0$0$0$0$0Dividends Paid$0$0$0$0$0$0Cash Flow Used in Financing Activities($775,828)($357,602)($275,304)($358,836)($356,779)($305,661)

Net Increase in Cash for Year($290,806)$457,809$607,686$471,983$414,138$426,910Cash at Beginning of Year$673,384$382,577$840,386$1,448,072$1,920,055$2,334,193Cash at End of Year$382,577$840,386$1,448,072$1,920,055$2,334,193$2,761,103

WACCDiscount Rate Calculation - AssumptionsHistorical BetaRisk-Free Rate:2.15%
Author: Author:Daily 20-year Treasury rate from http://www.ustreas.gov/offices/domestic-finance/debt-management/interest-rate/ltcompositeindex_historical.shtmlStarwood hotels1.95Equity Risk Premium:5.00%
Author: Author:Picked from middle of standard range of 3% - 10%.Marriott1.44 (beta) - Industry historical1.95Allied hotels0.05Cost of Equity, Re11.9%Transat1.37Cost of Debt, Rd5.3%All in west capital corp0.41Accor SA1.48MV of debtChoice hotels0.88Total debt$3,527,473Intercontinental1.31Average Beta1.11Cost of debt5.3%

MV of equityTotal Equity - BV$444*BVFMVFMV/BV ratioTotal MV*$7,196,703$91$1,475,000$16,209

WACC CalcualtionDebtEquity ValueTax Rate$3,527,473$7,196,7033.7%WACC 9.7%

DCFDiscounted Cash Flow Analysis - St. Annes

St. Annes - Cash Flow Projections20122013201420152016St. Annes - DCF Assumptions & Output

Revenue:11,487,93111,487,93111,487,93111,487,93111,487,931EBITDA:1,065,7221,120,3951,062,9551,005,516948,076Discount Rate (WACC):9.7%Operating Income:675,519730,193672,753615,313557,874

Less: Taxes(85,906)(97,547)(87,174)(75,263)(67,639)Terminal Growth Rate:0.0%Terminal Value:$9,109,939Plus: Depreciation390,202390,202390,202390,202390,202PV of Terminal Value:$6,014,739Inc/Dec change in Working Capital:29,0130000Sum of PV of Cash Flows:$3,851,083Less: Capital Expenditures(34,106)0000Enterprise Value:$9,865,822

Unlevered Free Cash Flow$974,723$1,022,848$975,782$930,252$880,437Terminal Value % EV:61.0%Present Value of Free Cash Flow$930,782$890,659$774,795$673,548$581,299

Normal Discount Period:1.02.03.04.05.0Mid-Year Discount:0.51.52.53.54.5

Sensitivity AnalysisTerminal Growth Rate$9,865,8220.0%0.5%1.0%1.5%2.0%2.5%3.0%WACC8.0%$11,771,534$12,331,980$12,972,490$13,711,540$14,573,765$15,592,758$16,815,5508.5%$11,121,047$11,607,628$12,159,087$12,789,325$13,516,524$14,364,922$15,367,5749.0%$10,542,532$10,968,144$11,446,958$11,989,613$12,609,791$13,325,381$14,160,2369.7%$10,542,532$10,968,144$11,446,958$11,989,613$12,609,791$13,325,381$14,160,23610.0%$9,558,255$9,890,204$10,259,035$10,671,258$11,135,010$11,660,594$12,261,26210.5%$9,136,051$9,431,656$9,758,377$10,121,400$10,527,132$10,983,580$11,500,88811.0%$8,751,999$9,016,518$9,307,488$9,629,087$9,986,419$10,385,790$10,835,08211.5%$8,401,127$8,638,874$8,899,264$9,185,693$9,502,273$9,854,028$10,247,165

Spa ComparablesSpa ComparablesEV as a multiple of TTM:Price /Price /Spas worldwideRevenueEBITDAEBITearningsbookMary Chia Holdings LimitedMinimum0.42.83.83.20.8Modern Beauty Salon Holdings LtdAverage1.714.814.414.42.8Steiner Leisure Ltd.Median2.09.013.810.12.2Other comparables in North AmericaAdjusted Average1.79.013.712.22.7Great Wolf Resorts, Inc.Maximum2.962.228.536.14.8InterGroup Corp.Life Time Fitness Inc.Sports Club Co. Inc.WellQuest Medical & Wellness CorporationSte. Anne's 2011 EBITDA$1,055,170EV multiple9.0 xSource: Capital IQEV$9,496,530

Ste. Anne's 2011 Revenue$11,374,189EV multiple1.5 xEV$17,061,284

Hotel ComparablesEV/SalesLTM - Sep/11 Actual12/31/2010 Actual12/31/2011 Expected12/31/2012 ExpectedStarwood hotels2.12.82.22Marriott1.11.511.1Allied hotels0.50.03Northampton1.92Royal host2.12.32.12.1All in west capital corp6.27.3Accor SA0.91.50.90.9Choice hotels3.94.13.93.7Intercontinental3.33.83.33.1

Average2.42.82.22.2Median2.12.32.22.1Std dev1.82.11.21.1St. Annes 2010 Sales$11,486,50317229754.5St. Annes EV$24,121,656$26,418,957$24,695,981

EV/EBITDALTM - Sep/1112/31/2010 A12/31/2011 E12/31/2012 EStarwood Hotels11.617.811.810.6Marriott21.218.911.411.3Allied hotels1.42.6Northampton7.98.1Royal host10.910.112.913.1Accor SA7.814.35.35.3Choice hotels13.814.213.412.7Intercontinental9.1118.88.5

Average10.512.110.610.3Median10.012.611.611.0Std dev5.75.33.12.9St. Annes 2010 EBITDA$2,709,43421675472St. Annes EV$27,094,340$34,138,868$31,429,434

EV/EBITLTM - Sep/1112/31/2010 A12/31/2011 E12/31/2012 EStarwood Hotels15.827.617.514.8Marriott29.623.414.213.8Allied hotels1.53.1Transat 21.621.7Northampton12.512.8Royal host44.321.2Accor SA24.267.41010.1Choice hotels14.414.914.213.4Intercontinental10.813.510.610.1

Average19.422.813.312.4Median15.821.214.213.4Std dev$12.4$18.2$3.1$2.2St. Annes 2010 EBIT$2,338,520St. Annes EV$36,948,616$49,576,624$33,206,984

GraphsYear2010 A2011 E2012 E2013E2014E2015EDebt to Equity12.46.64.33.12.42.0Year2010 A2011 E2012 E2013E2014E2015ENet Income$369,657$432,051$490,599$438,428$378,526$340,180Year2010 A2011 E2012 E2013E2014E2015ERevenue$11,374,189$11,487,931$11,487,931$11,487,931$11,487,931$11,487,931Year2010 A2011 E2012 E2013E2014E2015EOperating expense$5,733,261$6,116,248$7,151,626$7,223,142$7,168,469$7,225,909