In This Issue:

• Message from the CEO
• Corporate News
• Operations
• Log Harvesting
• Forestry News
• Information Systems
• Mill Report
• Combatting a Cold
• Safety Stats
• Calendar

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By Paul Pashnik, ManagerForestry News

1. Forest Stewardship Plans (F.S.P.)

The public review process for MaMook Natural Resources Ltd's Tree Farm License (TFL) 54 FSP ended on November 5, 2007. Ron Sorensen will now compile the comments received and review the current plan to ensure the valid forest management concerns have been appropriately dealt with. I would like to point out that the FSP we are proposing for, TFL54, is an amendment to the Iisaak Forest Resources Ltd's approved TFL57 FSP. Our amendment merely adds TFL54 land base to the approved plan and in so doing creates a joint FSP with Iisaak. Through the amendment, MaMook Natural Resources Ltd commits to achieve all results and strategies already approved in the Iisaak plan. In addition to adding the MaMook corporate name throughout the plan, we add a clause that requires both licensees to jointly plan operations when they occur in the same drainage.

When Ron completes the public review analysis, the final plan will be submitted to the District Manager of the South Island Forest District for approval. I expect that the plan will be submitted on November 9th, 2007. The District Manager will need to consult with the Central Region Board and then make a determination on approving the plan . This approval process is expected to take another 60 days.

2. Cutting Permits

MaMook-Coulson TFL 54 has completed the engineering on Block E-24 in the Escalante River and have recently submitted a road permit for constructing the roads. Zolie Schafer advises we will soon be submitting a cutting permit application for the timber. The permit will contain approximately 8,000m3 of timber and will be part of the Stewardson March 2008 logging operations.

Detailed engineering of the new TFL54 cutting permits is also occurring at Stewardson Inlet where an additional 150,000m3 is being planned and at Bedwell Inlet where approximately 40,000m3 of blow down we plan to recover. At Kennedy Flats 20,000m3 is in the preliminary layout stage for 2 new permits.

3. Fire Protection

Fire season ended on October 31st. Ron Sorensen has brought in one weather station and should bring in the second one in the next few of weeks. Over the next month, all fire tools, water tanker trucks and fire pumps are to be brought in. Gary Collinge and Neil Nixon will ensure this equipment is brought in and checked, repaired, tested and stored for deployment during 2008 fire season.

4. Stumpage Allowance TFL54

We have a serious problem with a recent amendment to the Coast Timber Appraisal Manual where the cost allowance for operating in Clayoquot Sound was reduced by nearly 60%. The allowance was $13.31/m3 and was allowed to recognize the high costs of operating under the rules as set out under the Clayoquot Sound Scientific Panel. These extra costs relate to forest planning, conducting engineering, carrying out resource assessments and related post logging research studies.

It is our contention that this reduction in the allowance was based on flawed cost data that the Ministry used when they reviewed and recalculated the allowance. Despite our input to the Ministry that the cost data they used was incomplete and not representative of actual cost due to the TFL54 being shutdown during 2005 and 2006 and TFL57 was operating under survival mode (only doing basic engineering and confining operations to areas where previous detailed engineering has been done), the Ministry went ahead and lowered the allowance to $6.11/m3. This is a major setback and unless corrected will threaten the financial viability of most of our planned operations.

We have joined together with Iisaak to appeal to the Minister of Forests to re-instate the original $13.31 per cost allowance. We have retained Mr.Ken Matthews RPF to assist in preparing our appeal to the Minister. We plan to make our submission as soon as possible as the Ministry is allowing us to put forth technical data for the Minister to consider.