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NEL purchased the preferred shares in 20x4, when Canner came to NEL looking for equity financing. NEL purchases product from Canner for its propane operations.

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NEL purchased the preferred shares in 20x4, when Canner came to NEL looking for equity financing. NEL purchases product from Canner for its propane operations. Canner is a closely held private company. Money was needed for an expansion, but Canner was unwilling to agree to the terms presented by lenders. Canner is located in a small town, and many of its workers are shareholders and are related through family ties. Canner has a six-member Board of Directors, and NEL places one member on the Board. To date, this has been a positive experience for all concerned, as the Canner Board of Directors has been receptive to suggestions of the NEL representative; many improvements and modernization of governance and operations are being considered. Canner pays dividends regularly. Placement Resources Corp., Common Shares Placement Resources is a mineral exploration company with active exploration going on in Northern Manitoba. NEL owns 10.2% of the common shares. NEL became involved with this company in 20x5, at the suggestion of a major NEL shareholder. This shareholder owns 14% of NEL and 44% of Placement. After appropriate investigation, NEL purchased a common interest and has been very pleased with the results. NEL estimates that the shares owned have a current value of at least $900 (thousand), although this is an estimate because Placement is only traded over the counter. Placement has had an erratic operating history, with high net income in some years when exploration is successful and losses in other years. In good years, dividend payouts are material. NEL has two members on the 11member Board of Directors; the NEL shareholder has four members on the Board and is highly inuential. Lu Trucking, Common Shares The common shares of Lu Trucking represent 24.3% of the voting shares and were purchased in 20x4, when NEL was considering acquiring this rival trucking company. Lu Trucking is a private company. The remaining shareholders of Lu were not enthusiastic about a transfer of ownership. NEL originally had one member on the nine-member Board of Directors, but has ceased to appoint a representative because relations were poor. NEL has attempted to sell these shares several times to other shareholders of Lu, with little success, as they are unable to agree on a price. Lu pays regular, although modest, dividends

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