OVERVIEW

Key Corporate Objectives

• Leverage our recently completed $2.0 million order with Fanny Bay Oyster Co., a division of Taylor Shellfish Farms of Shelton, Washington (an international seafood distributor and the largest shellfish company on the West Coast) to expand overall scallops and reduce selling costs. The initial order is for more than 800,000 lbs. of Edgewater's proprietary Qualicum Beach scallops to be delivered to Fanny Bay over the next 13 months. The order includes live scallops, fresh scallop meat and frozen scallops to be farmed in Edgewater Foods' Qualicum Beach, British Columbia, operation, and packaged and delivered in various scallop products (including live in-the-shell, frozen half-shell and fresh meat).


• Continue to move forward with our discussions with various First Nations groups about possible partnerships or joint ventures on potential farm sites on First Nation owned lands. This will provide the company with additional growing areas for scallops and future joint venture revenues.


• Investigate possible acquisitions of other aquaculture companies, equipment vendors and/or seafood distributors. We plan to initially focus on companies that we believe could significantly benefit from our hatchery technology and expertise. As part of this initiative we recently established an Acquisition/Business Opportunity Board Committee and are currently beginning initial conversions with both North American and Chinese based companies. Aside from the November 2008 acquisition of Granscal Sea Farms Ltd., a Kanish Bay Company, to date, no new definitive agreements have been signed.


• Look to indentify either new strategic investors and/or possible joint venture partners who could help us capitalize on existing sablefish (or blackcod) hatchery technology and expertise. One possible arrangement would be for us to license our blackcod hatchery technology and expertise to a strategic partner. As of the date of this filing, we have yet to locate either a strategic investor or a joint venture of licensing partner. If we do indentify a suitable arrangement, our goal would be to capitalize on the high demand for sablefish in foreign markets by entering into the blackcod market in the next 2 to 3 years.


• We plan to expand current scallop distribution by leveraging our initial 500,000 piece frozen roe on scallop meat order with European Union seafood distributors. While our arrangement with Taylor Shellfish will focus on North America markets, we believe this order could represent an important first step towards establish a large European based demand for our scallops.