Background to Blennerhassett Equestrian Center

1. Lesley and Michael Colgan and their two adult daughters Megan and Tamara have owned and
ridden more than 50 horses since 1988. We were competitive hunter-jumper riders in California
before coming to Canada and opening Blennerhasset Equestrian Center on Salt Spring Island in
2005. We have had wide experience with premier riding facilities, including Spruce Meadows in
Canada, and Rancho Santa Fe and Del Mar in California. We have constructed and managed stables
in California for our horses. We have a family history with Connemara horses in Ireland, as
part of the Blennerhassett family.

2. There are ten essential segments to a first-class equestrian center and stud:

(1) a full size indoor arena,

(2) a full size outdoor arena,

(3) a round pen,

(4) a training ring,

(5) turn-out paddocks,

(6) a cross-country course

(7) a full size hay barn

(8) a grain barn,

(9 horse accommodation barns

(10) a stallion barn and turn-out.

The Blennerhasset Equestrian Center was developed in 2005-2006 to include these 10 segments to
a very high standard, at a cost of $6,170,000.00 (including $2,975000.00 for the land
purchase). It was built with a view to becoming part of the Canadian competitive circuit.

3. We maintain computerized records of this investment. It incorporates two horse barns with
breeding facilities and accommodation for 14 horses, 12 shed rows, which are partially open
shelters for horses, including fenced turn-outs, sufficient to board 24 horses, and a stallion
barn, a training ring, workers cottages, offices, and a 60 seat-conference room and service
kitchen. Capacity is 65 horses.

4. We developed the property so that it could be run as an organic farm, using no fertilizers,
and harvesting our own hay. We developed a compost facility to recycle the horse waste, and
use only that compost on the facility.

5. We obtained a British Columbia Environmental Farm Plan completion certificate in January
2006. Unlike numerous regional facilities, we have had no outbreaks of illness among our own
horses or our 30-40 boarded horses. From 2005 to the present, largely because of a clean
facility, devoid of synthetic chemicals, and constant attention to veterinary services, we
have bred champion purebred Connemara horses without any failures or difficulties. We have
bred 16 horses since 2005, including a Canadian Connemara Stallion, and we won the Canadian
Champion Mare in 2007.