MortEq Lending Corp. (“MortEq”) is a mortgage investment corporation incorporated under the Business Corporations Act (British Columbia) on November 16, 2006. MortEq will seek to generate an internal rate of return to investors of 6.5 to 8.5% net of fees and expenses, by investing in first, second and third mortgages in the Province of British Columbia that do not meet conventional lending requirements. MortEq invests in first, second, and in exceptional cases third mortgages on residential properties such as single-family dwellings, duplexes, townhouses, condominium units, land or multiple family dwellings such as apartment buildings, including properties under construction. MortEq also invests in mortgages on commercial and industrial properties including properties under construction. The Company invests in Mortgages primarily in the Greater Vancouver, Fraser Valley, Kelowna, Kamloops, White Rock, Squamish, Whistler, Nanaimo and Victoria Capital Regional District of British Columbia with terms of one year or less.