August 3, Mr. Vadim Shub, CFO Skyline Investment Inc. 150 King Street West, Suite 2108 Toronto, Ontario Canada M5H 1J9

Transcription

1 Toivo Heinsaar Phone: August 3, 2016 Mr. Vadim Shub, CFO Skyline Investment Inc. 150 King Street West, Suite 2108 Toronto, Ontario Canada M5H 1J9 Re: Appraisal of Blue Mountain Lands, The Blue Mountains, Ontario Dear Mr. Shub: CHS Realty Advisors Inc. completed a Narrative Appraisal for future development lands located in The Blue Mountains, Ontario. Toivo Heinsaar, AACI, MRICS inspected the property on October13, 2014.The effective date of the appraisal report is June 30, The appraisal was prepared for the purpose of substantiation of fair market value of the properties for public financial statement preparation in accordance with IFRS purposes and mortgage financing purposes. The undersigned acknowledges that the attached appraisal, dated August 3, 2016, may be used by Skyline Investment Inc., Mishorim Development Group Ltd. and Schwartz Levitsky Feldman LLP Gai, Goffer, Yanev, Guilman, Udem and Co., as part of their audit procedure, and as such, we give our consent that the said appraisal may be attached to any report and/or prospectus which, pursuant to the laws and regulations of the State of Israel, must be publicly filed with said financial statements. Respectfully submitted, CHS Realty Advisors Inc. Toivo Heinsaar, BA, AACI, P.App., MRICS Partner CHS Realty Advisors Inc. theinsaar@chsrealtyadvisors.com 5859 YONGE STREET, SUITE 104 TORONTO, ON M2M 3V6 CANADA

2 APPRAISAL REPORT OF: BLUE MOUNTAIN LANDS, THE BLUE MOUNTAINS, ONTARIO August 3, 2016 Prepared for: Mr. Vadim Shub, CFO Skyline Investment Inc. 150 King Street West, Suite 2108 Toronto, Ontario Canada M5H 1J9

3 Toivo Heinsaar Phone: August 3, 2016 Mr. Vadim Shub, CFO Skyline Investment Inc. 150 King Street West, Suite 2108 Toronto, Ontario Canada M5H 1J9 Re: Appraisal of Blue Mountain Lands, The Blue Mountains, Ontario Dear Mr. Shub: At your request we have prepared an appraisal report of certain lands (described herein) located in The Blue Mountains, Ontario ( Subject Properties ). The appraisal will be prepared for the purpose of substantiation of fair market value of the properties for public financial statement preparation in accordance with IFRS purposes and mortgage financing purposes. Our analysis is presented in the following Narrative Appraisal Report. The purpose of this Narrative Valuation Report is to estimate the as-is market value of the Fee Simple interest in the Subject Properties as at 30-June-16, subject to the Assumptions and Limiting Conditions outlined within this report and Appendices. This Narrative Valuation Report was prepared in accordance with the Canadian Uniform Standards of Professional Appraisal Practices (CUSPAP). It contains an analysis of general and specific data deemed essential to support the estimate of value reported herein. This appraisal was prepared for the Mr. Vadim Shub, Skyline Investment Inc. its successors and assigns, and is intended only for its specific use. This appraisal report may be distributed to and relied upon by the Client s attorneys, auditors, participating lenders and rating agencies. It may not be distributed to or relied upon by other persons or entities without written permission of CHS Realty Advisors and the Appraiser. It is not to be referred to or quoted in any prospectus for the sale or exchange of securities, and may not be reproduced, in whole or in part, without our prior written agreement YONGE STREET, SUITE 104 TORONTO, ON M2M 3V6 CANADA

4 2 A result of this analysis, it is our opinion that the market value of the Fee Simple interest in the Subject Properties, subject to the assumptions, limiting conditions, certifications and definitions contained herein, as at 30-June-16, is estimated as follows: BLUE MOUNTAIN RESORT DEVELOPMENT LANDS No. Property Estimated Market value 1 Monterra South/Second Nature (South & North Half) $10,815,000 2 Plateau East $2,170,000 3 Monterra Phase 2 $1,970,000 4 Boathouse 3 and 4 Lands $1,575,000 5 Village Core Lands $10,230,000 6 Mountain Walk II $240,000 Total $27,000,000 This estimate of market value is based on an exposure time of 6 to 12 months. Respectfully submitted, CHS Realty Advisors Inc. Toivo Heinsaar, BA, AACI, P.App., MRICS Partner CHS Realty Advisors Inc. theinsaar@chsrealtyadvisors.com Blue Mountain Lands, The Blue Mountains, Ontario

5 TABLE OF CONTENTS 3 TABLE OF CONTENTS TABLE OF CONTENTS... 3 TERMS OF REFERENCE...9 TOWN OF THE BLUE MOUNTAINS HIGHEST AND BEST USE ANALYSIS VALUATION APPROACHES MONTERRA SOUTH/SECOND NATURE PLATEAU EAST MONTERRA PHASE BOATHOUSE 3& SITE DESCRIPTION VILLAGE CORE LANDS MOUNTAIN WALK II CERTIFICATION OF APPRAISAL ADDENDUM...77 Blue Mountain Lands, The Blue Mountains, Ontario

6 EXECUTIVE SUMMARY 4 PROPERTY SUMMARY Blue Mountain Lands, The Blue Mountains, Ontario

7 EXECUTIVE SUMMARY 5 REGIONAL MAP Blue Mountain Lands, The Blue Mountains, Ontario

8 EXECUTIVE SUMMARY 6 NEIGHBOURHOOD MAP Blue Mountain Lands, The Blue Mountains, Ontario

9 EXECUTIVE SUMMARY 7 Blue Mountain Lands, The Blue Mountains, Ontario

10 EXECUTIVE SUMMARY 8 RESIDENTIAL LANDS Blue Mountain Lands, The Blue Mountains, Ontario

11 TERMS OF REFERENCE 9 TERMS OF REFERENCE VALUE OPINION The value opinion presented in this report is considered to be a current value opinion. PURPOSE AND INTENDED USE OF THE APPRAISAL The appraisal will be prepared for the purpose of substantiation of fair market value of the properties for public financial statement preparation in accordance with IFRS purposes and mortgage financing purposes. Public financial statement preparation in accordance with IFRS purposes and mortgage financing purposes. This report has been prepared for the Mr. Vadim Shub, Skyline Investment Inc. This report is subject to the Assumptions and Limiting Conditions which form Addendum A to this report, in addition to specific assumptions which may be stated in the body of the report. Note: personal property is not included in the valuation of the Subject Property. DEFINITION OF MARKET VALUE For the purposes of this valuation, market value is defined as: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition are the consummation of a sale as of the specific date and the passing of title from seller to buyer under conditions whereby: Buyer and seller are typically motivated; Both parties are well informed or well advised, and acting in what they consider to be in their best interests; A reasonable time is allowed for exposure in the open market; Payment is made in terms of cash in Canadian Dollars or in financial arrangements comparable thereto; and The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. REASONABLE EXPOSURE TIME ESTIMATE Exposure time is always presumed to precede the effective date of the appraisal. It may be defined as: "The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal. It is a retrospective estimate based upon an analysis of past events assuming a competitive and open market." Ongoing discussions with agents active within the real estate market have indicated that properties such as the Subject typically require a marketing period of at least 6 months, depending on a number of factors including location, condition of the improvements, and motivation of the purchaser/vendor. It is therefore concluded that for the Subject Property to sell at the market value estimated herein, an exposure period of approximately 6 to 12 months would be required. Blue Mountain Lands, The Blue Mountains, Ontario

12 TERMS OF REFERENCE 10 RELEVANT DATES Inspection Date: 13-October-14 Effective Date: Report Date: 30-June-16 3-August-16 REPORTING STANDARDS The valuation analysis and the Appraisal conveying the estimate(s) of value have been prepared to comply with Appraisal Standard Rules and Appraisal Standard Comments of the Canadian Uniform Standards of Professional Appraisal Practice ( The Canadian Standards ). As such, all relevant material is provided in this narrative report, including the discussion of appropriate data, reasoning, and analyses that were used in the appraisal process to develop the opinion of value. Additional supporting documentation concerning the data, reasoning, and analyses used is retained in the Appraiser s file. The depth of discussion contained in this report is specific to the needs of the client and for the intended use stated. The appraiser is not responsible for unauthorized use of this report. ASSUMPTIONS AND LIMITING CONDITIONS Certain assumptions and limiting conditions have been made with respect to the appraisal of the Subject Property. These are included in the report s Addenda as Addendum A. EXTRAORDINARY LIMITING CONDITIONS An Extraordinary Limiting Condition refers to a necessary modification or exclusion of an Appraisal Institute Standard Rule. Such special circumstances include the inability to complete a property inspection, the purposeful exclusion of relevant valuation technique, etc. This appraisal does not employ any hypothetical conditions. EXTRAORDINARY ASSUMPTIONS & HYPOTHETICAL CONDITIONS An Extraordinary Assumption is an assumption, which if not true, could alter the appraiser s opinions and conclusions. They are required when a Hypothetical Condition is necessary due to circumstances that are not self-evident regarding the appraised property. Hypothetical Conditions include retrospective appraisals, significant renovations to the improvements, completion of proposed improvements, etc. For the purposes of this report, we have assumed there are no contaminants affecting the site. The subsoil is assumed to be similar to other lands in the area and suitable in drainage qualities and load bearing capabilities to support the existing development SCOPE OF REPORT During the course of preparing this valuation, the appraiser: Made a physical inspection of the Subject Properties as described herein; Toured the subject neighbourhood for the purpose of observing land use and general conformity of development, road patterns and other relevant area data; Reviewed various documents related to the Subject Properties; Blue Mountain Lands, The Blue Mountains, Ontario

13 TERMS OF REFERENCE 11 Researched and analyzed relevant market and financial data of similar properties in the Subject s market area; Interviewed local area real estate brokers/representatives; Reviewed available economic and real estate data regarding the local market; Reviewed and verified current land use regulations (Official Plan and Zoning By-law); Estimated the Highest and Best Use of the Subject Properties; and Prepared a narrative valuation report in accordance with the Standards. Additional supporting documentation concerning the data, reasoning, and analyses is retained in the appraiser s file. The depth of discussion contained in this report is specific to the needs of the client and for the intended use stated. Blue Mountain Lands, The Blue Mountains, Ontario

14 MARKET OVERVIEW 12 TOWN OF THE BLUE MOUNTAINS OVERVIEW The Blue Mountains is a town in Grey County, south-western Ontario, Canada, located where the Beaver River flows into Nottawasaga Bay. It is named for the Blue Mountain, and hence the economy of the town is centered around tourism, particularly on the Blue Mountain ski resort and the private Craigleith and Alpine Ski Clubs. DEMOGRAPHICS The town was formed on January 1, 2001, when the Town of Thornbury and the remaining settlements in the Township of Collingwood were amalgamated. The Bruce Trail passes through sections of the town. The Kolapore area for mountain biking and cross-country skiing, Metcalfe Rock which is popular with rock climbers as well as the Duncan Crevice Caves Nature Reserve are in the area as well. POPULATION Population data for the four South Georgian Bay municipalities is presented below. Census Population & Percentage Change, % change % change Clearview 13,734 14, % 2.1% Collingwood 19,241 17, % 7.8% The Blue Mountains 6,453 6, % 11.6% Wasaga Beach 17,537 15, % 21.0% ONTARIO 12,160,282 12,851, % 6.6% Population trends for each of the four municipalities vary over the period. Clearview has moved from a slight increase in population between 2001 and 2006 to a slight loss of population between 2006 and Collingwood s growth rate for has increased to double-digit percentage figures. This increase is indicative given the development of the Intrawest Blue Mountain Ski Resort and the rapid development of condos and new single family housing in The Blue Mountains and Wasaga Beach. The Blue Mountains have dropped from double-digit growth between 2001 and 2006 to a significant population loss between 2006 and While Wasaga Beach s growth slowed, it nevertheless maintained a considerable double-digit increase between 2006 and With the exception of Clearview, the trends have been somewhat more volatile as compared to Ontario as a whole. Blue Mountain Lands, The Blue Mountains, Ontario

15 MARKET OVERVIEW 13 AGE PROFILE Age Distributions by Broad Age Groups and Sex, 2011 Census Age Groups Both Sexes Males Females 0 to % 11.4% 10.5% 15 to % 59.3% 61.7% 65 and over 28.5% 29.3% 27.8% In 2011, the percentage of the population aged 65 and over in The Blue Mountains was 28.5%, compared with a national percentage of 14.8%. The percentage of the working age population (15 to 64) was 60.5% and the percentage of children aged 0 to 14 was 10.9%. In comparison, the national percentages were 68.5% for the population aged 15 to 64 and 16.7% for the population aged 0 to 14. It s clear from these statistics that the target market is strongly biased toward empty nesters and retirees. INDUSTRY The chart below highlights this data by selected industry sectors. In Wasaga Beach, the low level of full-time fullyear work is especially pronounced in the Retail Trade and Food & Accommodation Services industries, reflecting the greater seasonality of the tourism sector in that area. In The Blue Mountains the incidence of low full-time full-year work is especially noticeable in the Professional, Scientific & Technical Services and the Health & Social Assistance sectors, reflecting perhaps a higher proportion of semi-retired professionals working parttime. P E R C E N T A G E F U L L-TIME, F U L L-YEAR, EM P L O Y M E N T, S E L E C T I N D U S T R I E S, 2006 Blue Mountain Lands, The Blue Mountains, Ontario

16 MARKET OVERVIEW 14 EMPLOYMENT INCOME The chart below compares the percentage of jobs by annual income, dividing them into three income ranges. EM P L O Y M E N T I N C O M E F O R J O B S I N M A R K E T A R E A S, 2005 All four communities have a higher proportion of jobs whose annual employment income was under $20,000 in This is particularly the case for Wasaga Beach, where 41% of jobs fell under $20,000, reflecting the higher proportion of jobs that are seasonal and/or part-time (Clearview is not far off at 35%). At the other end of the scale, all four communities also exhibited a smaller proportion of jobs with higher incomes (above $60,000) compared with the figure for Toronto or the rest of Ontario. The Blue Mountains had a significant portion of jobs with annual incomes falling between $20,000 and $60,000. RESALE MARKET OVERVIEW LISTINGS According to the MLS statistics released by the Georgian Triangle Association of Realtors ( GTAR ), the upward trend of new residential listings in June 2016 was 592 units, up 2.2 percent from a year earlier. Overall, the supply remains the lowest in more than a decade. There were 1,095 active residential listings on the MLS system at the end of June 2016, down 37.2 percent from levels a-year-ago. SALES Sales have been increasing over the past number of years. The general consensus is that the strong GTA housing market is also fueling demand in the Georgian Triangle Real Estate Market. Residential sales came in well above a year ago home levels in June Home sales have numbered 444 units in June 2016, rising 19 percent from a year ago. The areas include The Blue Mountain and Collingwood with the increase of 19.1 percent year-overyear basis to 287 units in June The history of sale trends displays the increase overtime. While the Blue Mountains market has always remained somewhat weaker as compared to Collingwood, both markets are experiencing a relatively strong upward trend in sales over the past few years. Blue Mountain Lands, The Blue Mountains, Ontario

17 MARKET OVERVIEW 15 DEMAND AND SUPPLY Sales-to-listings ratio are up considerably from 2015 and at the same time expired listings are down. This combination of higher sales-to-listing ratios and fewer expired listings also indicates a big demand for new listings. The table below highlights the activity in the market year-over-year. Blue Mountain Lands, The Blue Mountains, Ontario

18 MARKET OVERVIEW 16 SOUTHERN GEORGIAN BAY ASSOCIATION OF REALTORS 1 The most recent new release from the Southern Georgian Bay Association of Realtors is quoted below: Residential sales recorded through the MLS System of the Southern Georgian Bay Association of REALTORS came in well above year-ago levels in June Home sales numbered 444 units in June 2016, rising 19 per cent from a year earlier. The Southern Georgian Bay Association of REALTORS comprises two distinctive markets. Home sales in the Western Region which includes Wasaga Beach, Springwater, Clearview Township, Collingwood, The Blue Mountains, Municipality of Meaford and Grey Highlands rose 19.1 per cent on a year-over-year basis to 287 units in June Home sales in the Eastern Region, encompassing the Towns of Midland and Penetanguishene, and the Townships of Georgian Bay, Severn, Oro-Medonte, Tay and Tiny totaled 157 units in June. This was an increase of 18.9 per cent from June On a year-to-date basis home sales totaled 1,876 units over the first half of the year, rising 25.6 per cent from the same period in Year-to-date sales in the Western Region were up 21.4 per cent from Activity over the first half of 2016 recorded a gain of 34.2 per cent year-over-year in the Eastern Region. June 2016 saw more residential properties trade hands in the region served by the Association than in any other month in history, breaking the previous record set the month before, said Kevin Woolham, President of the Southern Georgian Bay Association of REALTORS. While the overall stock of listings relative to demand is currently sitting at unprecedented lows, there has been some relief in the form of a solid rebound in new listings in the Western District. The number of new residential listings in June 2016 was 592 units, up 2.2 per cent from a year earlier. 1 Southern Georgian Bay Association of Realtors Blue Mountain Lands, The Blue Mountains, Ontario

19 MARKET OVERVIEW 17 Overall supply remains at the lowest levels in more than a decade. There were 1,095 active residential listings on the Association s MLS System at the end of June 2016, down 37.2 per cent from year-ago levels. There were just 2.5 months of inventory at the end of June, down from the 4.7 months recorded at the end of June 2015 and well below the long-run average for this time of year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity. The value of all residential transactions in June was $150.1 million the first time that the monthly dollar volume has ever surpassed the $150 million mark. Sales of all types of properties numbered 484 units in June, an increase of 13.1 per cent compared to the same month in The total value of all properties sold in June 2016 was $162.7 million, up 30 per cent from June CONCLUDING COMMENTS The four municipalities in the region each have very different economic characteristics, but represent a single labour market. Tourism is the dominant industry driving growth in all sectors of the regional economy and continues to be the fastest growing industry in the region. The economy of The Blue Mountains is dominated by the Intrawest Blue Mountain Ski Resort depicted in this image from Google Earth. It is the largest ski resort in Ontario. Beginning in 1999 when Intrawest acquired 50% ownership of the property from the Weider family, the resort has undergone a major expansion: 1,000 condo-hotel units including the Grand Georgian Hotel with its 131 suites, 200 town homes and 100,000 sq. ft. of commercial space and a conference centre. The land use function of the Blue Mountain Village as prescribed in the Official Plan is to serve as one of the three main commercial nodes within the Town and, provide accommodations for visitors, guests and tourists. In particular, the Plan states that the predominant use of land shall be for residential. Recreational and commercial uses intended to both complement the existing recreational base and enhance the development of year-round recreational opportunities and facilities (S.4.8). The residential component is subject to specific zoning By-law regulations limiting owner occupancy thus encouraging the availability of pooled condominium hotel units. The Blue Mountain Village Core land use designation is unique in purpose, permitted uses and restrictions on those permitted uses. The Town of Collingwood is the commercial and service centre for the entire region. It accounts for approximately half of all business activity including retail sales in the region and has a substantial health, manufacturing, financial and knowledge-based employment foundation. Collingwood benefits from the surrounding visitor attractions and has a strong base of accommodation and food businesses. There are more than 20,000 jobs available in the region and more than half of those (54.6%) are found in Collingwood. Collingwood is the location of the Regional Hospital and a wide range of other personal and business services. Blue Mountain Lands, The Blue Mountains, Ontario

20 HIGHEST AND BEST USE ANALYSIS 18 HIGHEST AND BEST USE ANALYSIS INTRODUCTION The principal of the Highest and Best Use of a property is fundamental to the concept of market value. Highest and Best Use is defined by the Appraisal Institute of Canada as: The reasonably probable and legal use of vacant land or an improved property; which is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum profitability. PHYSICALLY POSSIBLE The Subject Properties are adequately served by utilities, and have adequate shape and size, sufficient access, etc., to be separately developable sites. There are no known physical reasons why the Subject Sites would not support any legally probable development. The surrounding development in the general area provides additional evidence for the physical possibility of development for the various sites and proposed uses. LEGALLY PERMISSIBLE The legally permissible uses are discussed in the property specific zoning sections. The proposed uses are supported by the zoning by-laws in place or as rezoned. FINANCIALLY FEASIBLE The determination of financial feasibility is dependent primarily on the relationship of supply and demand for the legally probable land uses versus the cost to create the uses. As discussed in the market analysis of this report, development (commercial/residential) in the market is healthy. Development of residential subdivisions and commercial developments in Blue Mountain Village are ongoing and as such, indicate that it would be financially feasible to complete a new residential/commercial development. MAXIMALLY PRODUCTIVE The final determination in the highest and best use analysis is the maximally productive use of the site. Land use in the area consists of a range of residential and commercial uses. Based upon market evidence of area uses, it is reasonable to conclude that the proposed uses would represent a maximally productive use. HIGHEST AND BEST USE CONCLUSION Based on the information presented above and upon information contained in the market and neighborhood analysis, we conclude that the highest and best use of the Subject Properties would be development as proposed for each property analyzed in this report. Blue Mountain Lands, The Blue Mountains, Ontario

21 VALUATION APPROACHES 19 VALUATION APPROACHES INTRODUCTION The market value of the subject property is contingent upon a number of factors such as location, replacement cost, physical condition and utility of the improvements, the market climate and general economic conditions. In the valuation process, these factors are incorporated into several approaches to value. The selection of the relevant methodology depends on the characteristics of the real estate being analyzed. Traditionally, the three most common approaches to the valuation of real property are: The Cost Approach to value is based on the economic principle of substitution, which states that the value of a property should not be more than the amount by which one can develop (by purchase of a site and construction of a building without undue delay) a property of equal desirability and utility. The Direct Comparison Approach considers the cost of acquiring equally desirable and valuable substitute properties, indicated by transactions of comparable properties, within the market area. The characteristics of the sale properties are compared to the subject property on the basis of time and such features as location, size and quality of improvements, design features and income generating potential of the property. The Income Approach to value is used to estimate real estate value based on property income generating capabilities using the Direct Capitalization Method or the Discounted Cash Flow method. There are two traditional methods to income valuations. Direct Capitalization Method division of a required yield (inverse of a required income multiple) into Net Operating Income to yield a value. Discounted Cash Flow Method - accounts for the anticipated growth or decline in income over the term of a prescribed holding period. VALUATION SOLUTION With the exception of the Boathouse 3 & 4 lands (where the Income Approach - Land Residual Methodology is developed), the Direct Comparison Approach will be developed. DIRECT COMPARISON APPROACH - UNIT OF COMPARISON RATIONALE There are two basic units of comparison: density units and physical units. Zoning ordinances relate to the first and the latter relates to physical measures, either linear or square units. Typically, density unit comparison may be appropriate where there is an active market and where there is a relatively straightforward low density form of development proposed (for example, if the land is already developed or if it is a greenfield within an urban economy and where infrastructure costs are consistent and not excessive). In this case, it is likely that the density, form and unit cost of the development will be similar with other comparables chosen for analysis. It may be tempting to break sale prices down into productive units for analytical purposes such as dollars per hotel unit or townhome unit. Such property uses are typically not zoned on this basis. Instead they are zoned according to building setback requirements, height limitations, site coverage ratio, or floor area ratio. The preliminary development nature of the subject lands under analysis and a somewhat inactive rural market would suggest a comparison unit related to zoning ordinances as opposed to density units, which also vary greatly in size from site to site. In this instance, the market will not use such price units, but rather develop values utilizing more conventional and readily understood units such as price per acre. Blue Mountain Lands, The Blue Mountains, Ontario

22 MONTERRA SOUTH/SECOND NATURE 20 MONTERRA SOUTH/SECOND NATURE ADDRESS OF PROPERTY UNDER VALUATION Grey Road 19, The Blue Mountains, Grey, Ontario LEGAL DESCRIPTION PIN (LT): CON 1 S PT LOT 17 RP 16R3145 PART 1 CON 1 PT LOTS 17&18 RP 16R5057 PART 5 PART 3, PLAN 16R PART 17, PLAN 16R-3495 PROPERTY IDENTIFICATION NUMBER (PIN) OWNERSHIP AND HISTORY The ownership history of the Subject Property is summarized in the following table: PARCEL ID DATE INST. TYPE FROM TO April-13 Transfer - T The Corporation of the Town of The Blue Mountains Skyline Blue Mountain Development Inc. There is currently a conditional Agreement of Purchase and Sale for the Subject Property dated March 3, purchase price is $11,500,000. SUBJECT PROPERTY USE CURRENT USE Residential Development Land PROPOSED USE 151 Single Family Lots and 82 Townhouse Units ENCUMBRANCES We do not know of any easements that would adversely affect the site's use. If the reader has specific concerns or desires additional support, we recommend a title search and consultation with a real estate attorney to determine whether any adverse conditions exist. The 20 Blue Mountain Lands, The Blue Mountains, Ontario

23 MONTERRA SOUTH/SECOND NATURE 21 LAND USE ANALYSIS Land use in Ontario may be controlled or directed by provincial restrictions through legislation such as the Planning Act, the Planning and Development Act, etc. Land use is also controlled by municipal restrictions such as Official Plans and Zoning By-Laws and/or other restrictive By-Laws. OFFICIAL PLAN According to the current Official Plan, the Subject Property is designated PR-28, H- Primary Residential and Hazard. Residential development may include a range of housing types from single detached to low rise multiple units. It is intended to accommodate the majority of the new recreational base that will occur over the planning period. The maximum density is 10 units per hectare and the open space component is 10% of the overall development. Increased densities not exceeding a total of 15 units per hectare on the basis that additional recreational lands and or facilities are to be provided that additional recreational lands are to be provided to the satisfaction of Council. ZONING BY-LAW According to the current Zoning By-Laws, the Subject Property is designated R3-Residential, R6-Residential, OS1-Open Space, OS2-Open Space, (H)-Hold. Draft plan approval in place for 151 single family lots and 82 townhouse units. PROPERTY ASSESSMENT The property assessment data is summarized in the table below: PROPERTY ASSESSMENT DATA Roll Number: MPAC Property Code & Description: Current Value Assessment: Monterra South / Second Nature Part 1: Monterra South / Second Nature Part 1: : Residential development land : Residential development land : $5,723, : $4,638,000 Total: $10,361, Blue Mountain Lands, The Blue Mountains, Ontario

24 MONTERRA SOUTH/SECOND NATURE 22 SITE DESCRIPTION GENERAL Location: Grey Road 19 and Mountain Drive Configuration: Irregular Corner Influence: Yes Traffic Pattern: Light Site Area: ac. (3,925,627sf) Current Use: Vacant development lands Proposed Use: 151 Single Family Lots and 82 Townhouse Units Development Stage: Draft Plan Approval in place Development Timeline: 1-2 Years SITE IMAGE SITE RATING Utility Rating: Good Large parcel with potential for multiple access points. Location Rating: Good In close proximity to Blue Mountain Village and all recreational amenities Overall Rating: Good Attractive residential development given it locational and physical attributes. 22 Blue Mountain Lands, The Blue Mountains, Ontario

25 MONTERRA SOUTH/SECOND NATURE 23 DESCRIPTION Services Summary: Access: Topography: Landscaping: Floodplain: Surface Drainage: Sub Surface Conditions: Environmental: Full Municipal Services Available Direct access to Subject Street Gently sloping lands - no significant topographical constraints None The Subject Property is not known to be located within a floodplain. No surface drainage issues noted No sub surface issues note. Assume sub surface conditions are similar to surrounding sites. We observed no evidence of toxic or hazardous substances during our inspection of the site, however, we are not trained to perform technical environmental inspections. Should concerns exist, we recommend the hiring of a professional engineer with expertise in this field. SITE & STREET IMPROVEMENTS Street Lights: No Sidewalks: No Curb/Gutter: Available Street Surface: Asphalt Street Width: 2 Lanes Sewers: Available Nearby Storms: Available Ditches: Yes Municipal Water: Available Well: No Septic: No Hydro: Available Gas: Available Telephone: Available Comments: The Subject Property is a relatively large undeveloped parcel of land across the street from Blue Mountain Village. The property features a greenbelt running diagonally through the mid-section with a watercourse. The proposed project is split into 4 phases (single detached) and an 82 multi-unit component in the southwest corner. 23 Blue Mountain Lands, The Blue Mountains, Ontario

26 MONTERRA SOUTH/SECOND NATURE 24 DIRECT COMPARISON APPROACH INTRODUCTION The Direct Comparison Approach is based on the Principle of Substitution which maintains that a prudent purchaser would not pay more for a property than the cost to purchase a suitable alternative property which exhibits similar physical characteristics, tenancy, location, etc. Within this approach, the property being valued is compared to properties that have sold recently or are currently listed and are considered to be relatively similar to the subject property. Typically, a unit of comparison (i.e. sale price per square foot) is used to facilitate the analysis. In the case of properties similar to the subject, the sale price per acre is the most commonly used unit of comparison. SELECTION OF COMPARABLE SALES As one sale is not necessarily indicative of market value, an appraiser examines a number of market transactions. When properly reconciled, trends emerge, leading to the estimate of market value of the property being appraised. The sales selected are considered to provide the most reliable evidence of market value for the Subject Property. The search yielded 5 sales which were considered to be similar to the Subject Property. The sale prices ranged from $3,109,210 to $10,000,000 an average of $5,850,000. When converted to a sale price per acre, the prices ranged from $80,409 to $136,700 an average of $100,265. Comparable Sales Table Index Address Municipality Region Property Type Site Area Ac Sale Date Sale Price Sale Rate th Line Bradford West Gwillimbury Simcoe Land Sep-14 $8,250,000 $80, th Line Bradford West Gwillimbury Simcoe Land Aug-14 $10,000,000 $99, Town Line Barrie Simcoe Land May-14 $3,109,210 $100, th Sideroad Bradford West Gwillimbury Simcoe Land Apr-15 $4,250,000 $136, Mountain Road Collingwood Simcoe Land Jan-16 $5,850,000 $119,437 Minimum May-14 $3,109,210 $80,409 Maximum Jan-16 $10,000,000 $136,700 Median Sep-14 $5,850,000 $100, Blue Mountain Lands, The Blue Mountains, Ontario

27 MONTERRA SOUTH/SECOND NATURE 25 COMPARABLE SALES MAP 25 Blue Mountain Lands, The Blue Mountains, Ontario

28 MONTERRA SOUTH/SECOND NATURE 26 ADJUSTMENT CONSIDERATIONS In valuing the subject lands, comparison was made to each of the index sales. consideration of the following criteria listed below. The basis for comparison included the ADJUSTMENT ITEMS Sale Date Rights Conveyed Financing Conditions of Sale Location Site Utility Development Status Site Area AC Where the market is changing, it may be necessary to adjust prices to reflect the time difference between the date of sale of a comparable property and the date of valuation. When real property rights are sold, they may be the sole subject of the contract or the contract may include other rights. In the sales comparison analysis, it is pertinent that the property rights of the comparable sale be similar to the property rights of the subject property. All the sales considered were Fee Simple transfers, no adjustments were necessary. The transaction price of one property may differ from that of a similar property due to different financing arrangements. Financing arrangements may include existing mortgages at favourable interest rates or paying cash to a lender so that a mortgage with a below-market interest rate could be offered. Adjustments for conditions of sale usually reflect the motivations of the purchaser and vendor. In some cases, the conditions of sale significantly affect transaction prices. Sales that reflect unusual situations require an appropriate adjustment for motivation or sale condition. For example, power-of-sale conditions involve a certain degree of urgency on part of the lender - leading to a somewhat lower sale price than what would otherwise be expected. On the other hand, transactions to create a land assembly may result in higher motivation by the buyer which often leads to a higher sale price than would be expected. An adjustment for location within a market area may be required when the locational characteristics of a comparable property are different from those of the subject property. Excessive locational differences may disqualify a property from use as a comparable. Although no location is inherently desirable or undesirable, the market recognizes that one location is better than, similar to, or worse than another. Site utility adjustments take into account site grading, site size, configuration and other factors that may have impact upon development. Site grading enhances utility and is considered as a value added feature. As site size decreases, certain types of development can become problematic from the standpoint of physical and financial feasibility. A site size that allows for more flexibility in development is favoured over a smaller more restrictive site. The configuration of the site will have impact upon maximum usable area of the site. Oddly configured sites tend to have more leakage of usable land. The development status (i.e. Draft Plan Approved) of a property has a material impact upon the value of a property. Consideration is given for properties which differ significantly in development status. The price per acre of land is expected to vary with the size of the tract. Generally, above an optimum acreage, as size increases, the price per acre decreases where all other features are similar. This is typically referred to as marginal diminishing utility. ANALYSIS OF COMPARABLE SALES The search yielded 5 sales considered similar to the Subject Property. It is acknowledged that sellers and buyers do not actually apply plus or minus adjustments by percentage or by lump sum dollar amounts for individual differences between comparable properties and a Subject Property. They do, however, weigh the advantages and disadvantages of a property they may sell or buy compared to others which have sold or are listed, and make at least an overall adjustment to reflect all of the differences. Descriptive analyses of the sales are outlined on the following pages. Index th Line (Bradford West Gwillimbury) was purchased for $8,250,000 ($80,409 per acre) in The property rights conveyed were fee simple and no financing was reportedly provided by the vendor - the sale is considered arms-length. This sale represents a farm and future development land. It is located just east of Highway 400 and north of the Holland Marsh. This property was purchased together with 3203 Fifth Line (91.1 acres) for a total 26 Blue Mountain Lands, The Blue Mountains, Ontario

29 MONTERRA SOUTH/SECOND NATURE 27 consideration of $16,500,000. Upward adjustments were made for Sale Date, Location, Development Status and Site Area Ac. Downward adjustments were made for Site Utility. Adjustments were not required for Property Rights, Financing, Conditions of Sale or Development Density. This sale required a total net upward adjustment - indicating a net adjusted rate of $111,000 per acre. Index th Line (Bradford West Gwillimbury) was purchased for $10,000,000 ($99,761 per acre) in The property rights conveyed were fee simple and financing was reportedly provided by the vendor - the sale is considered arms-length. This farm and future development land is located on the north side of 5th Line and adjacent to the Highlands Golf Club and residential development along Brownlee Drive. It is also a short distance south east of the Highway 400 interchange at County Road 88. It was last transferred in December 2010 for $6,600,000. Upward adjustments were made for Sale Date, Development Status and Site Area Ac. Downward adjustments were made for Location and Site Utility. Adjustments were not required for Property Rights, Financing, Conditions of Sale or Development Density. This sale required a total net upward adjustment - indicating a net adjusted rate of $121,000 per acre. Index Town Line (Barrie) was purchased for $3,109,210 ($100,265 per acre) in The property rights conveyed were fee simple and no financing was reportedly provided by the vendor - the sale is considered armslength. Sale of Pine View Golf & Country Club - about 31.0 $100,265. For development of a subdivision of detached single family homes. It is currently under construction - Pineview Greens is a new single family home development by Royalpark Homes. Upward adjustments were made for Sale Date. Downward adjustments were made for Location and Site Area Ac. Adjustments were not required for Property Rights, Financing, Conditions of Sale, Site Utility, Development Status or Development Density. This sale required a total net downward adjustment - indicating a net adjusted rate of $96,000 per acre. Index th Sideroad (Bradford West Gwillimbury) was purchased for $4,250,000 ($136,700 per acre) in The property rights conveyed were fee simple and financing was reportedly provided by the vendor - the sale is considered arms-length. The site is located across the street from the built-up area of Bradford West Gwillimbury - consisting of new residential development. The farm property is currently leased to a farmer. The purchaser hopes to develop the property (in 1-3 years) for residential use. Upward adjustments were made for Sale Date and Development Status. Downward adjustments were made for Location, Site Utility and Site Area Ac. Adjustments were not required for Property Rights, Financing, Conditions of Sale or Development Density. This sale required a total net downward adjustment - indicating a net adjusted rate of $126,000 per acre. Index Mountain Road (Collingwood) was purchased for $5,850,000 ($120,000 per acre) in The property rights conveyed were fee simple and financing was reportedly provided by the vendor - the sale is considered arms-length. This site is located between Mountain Road and Blue Mountain Golf and Country Club. The site has frontage along Mountain Road and 10th Line. It is currently an agricultural field. Draft Approved Land in Collingwood's west end allows for a mix of singles, towns, and walk-up units at this time up to 304 units total. Also with a commercial element. Zoned REC EP R3-42 R3 C6. Upward adjustments were made for Sale Date. Downward adjustments were made for Site Utility and Site Area Ac. Adjustments were not required for Property Rights, Financing, Conditions of Sale, Location, Development Status or Development Density. This sale required a total net downward adjustment - indicating a net adjusted rate of $119,000 per acre. 27 Blue Mountain Lands, The Blue Mountains, Ontario

30 MONTERRA SOUTH/SECOND NATURE 28 ADJUSTMENT SUMMARY TABLE Adjustment Summary Table Property Description Subject Property Index 1349 Index 1350 Index 1351 Index 1364 Index 3085 Address/Legal Description City Monterra South/Second Nature Town of The Blue Mountains th Line th Line 343 Town Line th Sideroad Bradford West Gwillimbury Bradford West Gwillimbury Barrie Bradford West Gwillimbury 260 Mountain Road Collingwood Sale Date Effective Date Land Area Sale Price $10,814,400 $8,250,000 $10,000,000 $3,109,210 $4,250,000 $5,850,000 Sale Rate $120,000 $80,409 $99,761 $100,265 $136,700 $119,437 Value Adjustments Description Description Adj. Description Adj. Descriptio n Adj. Description Adj. Description Market Condition (Time) Effective Date Property Rights Conveyed Fee Simple Fee Simple Nil Fee Simple Nil Fee Simple Nil Fee Simple Nil Fee Simple Nil Financing Cash Cash Nil VTB Nil Cash Nil VTB Nil VTB Nil Conditions of Sale Normal Normal Nil Normal Nil Normal Nil Normal Nil Normal Nil Location Good Avg (+) + Good (+) - Good (+) - Good (+) - Good Nil Site Utility Avg Good - Good - Avg Nil Good - Good - Development Status Good Fair + Fair + Good Nil Avg (+) + Good Nil Site Area Ac Total Net Adjustments Adjusted Rate $111, $121, $96, $126, $119, Adj. 28 Blue Mountain Lands, The Blue Mountains, Ontario

31 MONTERRA SOUTH/SECOND NATURE MARKET VALUE ESTIMATE Before the adjustment process, the sale prices ranged from $3,109,210 to $10,000,000 an average of $5,850,000. When converted to a sale price per acre, the prices ranged from $80,409 to $136,700 an average of $100,265. After the adjustment process, the sale rates ranged from $96,000 to $126,000. All factors considered it is our opinion that the market value of the Subject Property via the Direct Comparison Approach as at 30-June-16, is: PREVIOUS APPRAISAL DISCLOSURE AND COMMENTS acres x $120,000 per acre = $10,814,400 $10,815,000 (Rounded) The Subject Property was appraised for $9,500,000 effective 30-June-15. The current valuation of $10,815,000 contained in this report implies a percentage increase of 14%. The increase in value is considered reasonable when the favourable market conditions and escalating prices are taken into consideration. 29 Blue Mountain Lands, The Blue Mountains, Ontario

32 PLATEAU EAST 30 PLATEAU EAST ADDRESS OF PROPERTY UNDER VALUATION 220 Grey Road 21, The Blue Mountains, Grey, Ontario LEGAL DESCRIPTION PIN (LT): CON 1 N PT LOT 17 RP 16R5057 PARTS 6, 7, 8 PART 22, PLAN 16R-3495 PROPERTY IDENTIFICATION NUMBER (PIN) OWNERSHIP AND HISTORY The ownership history of the Subject Property is summarized in the following table: PARCEL ID DATE INST. TYPE FROM TO April-13 Transfer - T Westbrook Development Corporation Skyline Blue Mountain Development Inc. The Subject Property was sold in late 2015 at an undisclosed price closing is expected in the latter half of SUBJECT PROPERTY USE CURRENT USE Residential Development Land PROPOSED USE 37 Single Family Lots ENCUMBRANCES We do not know of any easements that would adversely affect the site's use. If the reader has specific concerns or desires additional support, we recommend a title search and consultation with a real estate attorney to determine whether any adverse conditions exist. LAND USE ANALYSIS Land use in Ontario may be controlled or directed by provincial restrictions through legislation such as the Planning Act, the Planning and Development Act, etc. Land use is also controlled by municipal restrictions such as Official Plans and Zoning By-Laws and/or other restrictive By-Laws. OFFICIAL PLAN According to the current Official Plan, the Subject Property is designated RR-51-Recreational Residential. 30 Blue Mountain Lands, The Blue Mountains, Ontario

33 PLATEAU EAST 31 Residential development is intended to be primarily for single detached form however, other housing types include duplex or town housing developments may be permitted. Residential density shall not exceed 2.5 units per hectare and must satisfy 40% of the lands comprise a recreational open space component. ZONING BY-LAW According to the current Zoning By-Laws, the Subject Property is designated R3-Residential, OS1-Open Space. Currently draft plan approved for 37 single family lots. PROPERTY ASSESSMENT The property assessment data is summarized in the table below: PROPERTY ASSESSMENT DATA Roll Number: MPAC Property Code & Description: Current Value Assessment: $1,806, Residential development land 31 Blue Mountain Lands, The Blue Mountains, Ontario

34 PLATEAU EAST 32 SITE DESCRIPTION GENERAL Location: Grey Road 21 and Mountain Road Configuration: Irregular Corner Influence: No Traffic Pattern: Light Site Area: ac. (700,880sf) Current Use: Vacant development lands. Proposed Use: 37 Single Family Lots Development Stage: Draft Plan Approval in place Development Timeline: 1-2 Years SITE IMAGE SITE RATING Utility Rating: Good Large parcel with direct access from Grey Road 21. Location Rating: Overall Rating: Good Good In close proximity to Blue Mountain Village and all recreational amenities. Attractive residential development given it locational and physical attributes. 32 Blue Mountain Lands, The Blue Mountains, Ontario

35 PLATEAU EAST 33 DESCRIPTION Services Summary: Access: Topography: Landscaping: Floodplain: Surface Drainage: Sub Surface Conditions: Environmental: Full Municipal Services Available Direct access to Subject Street Flat table land None The Subject Property is not known to be located within a floodplain. No surface drainage issues noted No sub surface issues note. Assume sub surface conditions are similar to surrounding sites. We observed no evidence of toxic or hazardous substances during our inspection of the site, however, we are not trained to perform technical environmental inspections. Should concerns exist, we recommend the hiring of a professional engineer with expertise in this field. SITE & STREET IMPROVEMENTS Street Lights: No Sidewalks: No Curb/Gutter: Available Street Surface: Asphalt Street Width: 2 Lanes Sewers: Available Storms: Available Ditches: Yes Municipal Water: Available Well: No Septic: No Hydro: Available Gas: Available Telephone: Available Comments: The Subject Property is relatively long strip of undeveloped residential land. The sale calls for 39 lots on a cul-de-sac configuration. The land is currently under going servicing. NOTE: The valuation reported herein does not factor in the servicing and represents unserviced land only. 33 Blue Mountain Lands, The Blue Mountains, Ontario

36 PLATEAU EAST 34 DIRECT COMPARISON APPROACH INTRODUCTION The Direct Comparison Approach is based on the Principle of Substitution which maintains that a prudent purchaser would not pay more for a property than the cost to purchase a suitable alternative property which exhibits similar physical characteristics, tenancy, location, etc. Within this approach, the property being valued is compared to properties that have sold recently or are currently listed and are considered to be relatively similar to the subject property. Typically, a unit of comparison (i.e. sale price per square foot) is used to facilitate the analysis. In the case of properties similar to the subject, the sale price per acre is the most commonly used unit of comparison. SELECTION OF COMPARABLE SALES As one sale is not necessarily indicative of market value, an appraiser examines a number of market transactions. When properly reconciled, trends emerge, leading to the estimate of market value of the property being appraised. The sales selected are considered to provide the most reliable evidence of market value for the Subject Property. The search yielded 3 sales which were considered to be similar to the Subject Property. The sale prices ranged from $3,109,210 to $5,850,000 an average of $4,250,000. When converted to a sale price per acre, the prices ranged from $100,265 to $136,700 an average of $119,437. Comparable Sales Table Index Address Municipality Region Property Type Site Area Ac Sale Date Sale Price Sale Rate Town Line Barrie Simcoe Land May-14 $3,109,210 $100, th Sideroad Bradford West Gwillimbury Simcoe Land Apr-15 $4,250,000 $136, Mountain Road Collingwood Simcoe Land Jan-16 $5,850,000 $119,437 Minimum May-14 $3,109,210 $100,265 Maximum Jan-16 $5,850,000 $136,700 Median Apr-15 $4,250,000 $119, Blue Mountain Lands, The Blue Mountains, Ontario

37 PLATEAU EAST 35 COMPARABLE SALES MAP 35 Blue Mountain Lands, The Blue Mountains, Ontario

38 PLATEAU EAST 36 ADJUSTMENT CONSIDERATIONS In valuing the subject lands, comparison was made to each of the index sales. consideration of the following criteria listed below. The basis for comparison included the ADJUSTMENT ITEMS Date of Sale Rights Conveyed Financing Conditions of Sale Location Site Utility Development Status Site Area AC Where the market is changing, it may be necessary to adjust prices to reflect the time difference between the date of sale of a comparable property and the date of valuation. When real property rights are sold, they may be the sole subject of the contract or the contract may include other rights. In the sales comparison analysis, it is pertinent that the property rights of the comparable sale be similar to the property rights of the subject property. All the sales considered were Fee Simple transfers, no adjustments were necessary. The transaction price of one property may differ from that of a similar property due to different financing arrangements. Financing arrangements may include existing mortgages at favourable interest rates or paying cash to a lender so that a mortgage with a below-market interest rate could be offered. Adjustments for conditions of sale usually reflect the motivations of the purchaser and vendor. In some cases, the conditions of sale significantly affect transaction prices. Sales that reflect unusual situations require an appropriate adjustment for motivation or sale condition. For example, power-of-sale conditions involve a certain degree of urgency on part of the lender - leading to a somewhat lower sale price than what would otherwise be expected. On the other hand, transactions to create a land assembly may result in higher motivation by the buyer which often leads to a higher sale price than would be expected. An adjustment for location within a market area may be required when the locational characteristics of a comparable property are different from those of the subject property. Excessive locational differences may disqualify a property from use as a comparable. Although no location is inherently desirable or undesirable, the market recognizes that one location is better than, similar to, or worse than another. Site utility adjustments take into account site grading, site size, configuration and other factors that may have impact upon development. Site grading enhances utility and is considered as a value added feature. As site size decreases, certain types of development can become problematic from the standpoint of physical and financial feasibility. A site size that allows for more flexibility in development is favoured over a smaller more restrictive site. The configuration of the site will have impact upon maximum usable area of the site. Oddly configured sites tend to have more leakage of usable land. The development status (i.e. Draft Plan Approved) of a property has a material impact upon the value of a property. Consideration is given for properties which differ significantly in development status. The price per acre of land is expected to vary with the size of the tract. Generally, above an optimum acreage, as size increases, the price per acre decreases where all other features are similar. This is typically referred to as marginal diminishing utility. ANALYSIS OF COMPARABLE SALES The search yielded 3 sales considered similar to the Subject Property. It is acknowledged that sellers and buyers do not actually apply plus or minus adjustments by percentage or by lump sum dollar amounts for individual differences between comparable properties and a Subject Property. They do, however, weigh the advantages and disadvantages of a property they may sell or buy compared to others which have sold or are listed, and make at least an overall adjustment to reflect all of the differences. Descriptive analyses of the sales are outlined on the following pages. Index Town Line (Barrie) was purchased for $3,109,210 ($100,265 per acre) in The property rights conveyed were fee simple and no financing was reportedly provided by the vendor - the sale is considered armslength. This is the sale of Pine View Golf & Country Club - about 31.0 $100,265. It is intended for the development of a subdivision of detached single family homes. It is currently under construction - Pineview Greens is a new single family home development by Royalpark Homes. Upward adjustments were made for Sale Date, Development Status and Site 36 Blue Mountain Lands, The Blue Mountains, Ontario

39 PLATEAU EAST 37 Area Ac. Downward adjustments were made for Location. Adjustments were not required for Property Rights, Financing, Conditions of Sale, Site Utility or Development Density. This sale required a total net upward adjustment - indicating a net adjusted rate of $118,000 per acre. Index th Sideroad (Bradford West Gwillimbury) was purchased for $4,250,000 ($136,700 per acre) in The property rights conveyed were fee simple and financing was reportedly provided by the vendor - the sale is considered arms-length. The site is located across the street from the built-up area of Bradford West Gwillimbury - consisting of new residential development. The farm property is currently leased to a farmer. The purchaser hopes to develop the property (in 1-3 years) for residential use. Upward adjustments were made for Sale Date, Development Status and Site Area Ac. Downward adjustments were made for Location and Site Utility. Adjustments were not required for Property Rights, Financing, Conditions of Sale or Development Density. This sale required a total net upward adjustment - indicating a net adjusted rate of $150,000 per acre. Index Mountain Road (Collingwood) was purchased for $5,850,000 ($119,437 per acre) in The property rights conveyed were fee simple and financing was reportedly provided by the vendor - the sale is considered arms-length. This site is located between Mountain Road and Blue Mountain Golf and Country Club. The site has frontage along Mountain Road and 10th Line. It is currently an agricultural field. Draft Approved Land in Collingwood's west end allows for a mix of singles, towns, and walk-up units at this time up to 304 units total. Also with a commercial element. Zoned REC EP R3-42 R3 C6. Upward adjustments were made for Sale Date, Development Status and Site Area Ac. Downward adjustments were made for Site Utility. Adjustments were not required for Property Rights, Financing, Conditions of Sale, Location or Development Density. This sale required a total net upward adjustment - indicating a net adjusted rate of $137,000 per acre. 37 Blue Mountain Lands, The Blue Mountains, Ontario

40 PLATEAU EAST 38 ADJUSTMENT SUMMARY TABLE Adjustment Summary Table Property Description Subject Property Index 1351 Index 1364 Index 3085 Address/Legal Description Plateau East 343 Town Line th Sideroad 260 Mountain Road City Town of The Blue Mountains Barrie Bradford West Gwillimbury Collingwood Sale Date Effective Date Land Area Sale Price - $3,109,210 $4,250,000 $5,850,000 Sale Rate - $100,265 $136,700 $119,437 Value Adjustments Description Description Adj. Description Adj. Description Adj. Market Condition (Time) Effective Date Property Rights Conveyed Fee Simple Fee Simple Nil Fee Simple Nil Fee Simple Nil Financing Cash Cash Nil VTB Nil VTB Nil Conditions of Sale Normal Normal Nil Normal Nil Normal Nil Location Good Good (+) - Good (+) - Good Nil Site Utility Avg Avg Nil Good - Good - Development Status Good Good + Avg (+) + Good + Site Area Ac Total Net Adjustments Adjusted Rate $118, $150, $137, Blue Mountain Lands, The Blue Mountains, Ontario

41 PLATEAU EAST 39 MARKET VALUE ESTIMATE Before the adjustment process, the sale prices ranged from $3,109,210 to $5,850,000 an average of $4,250,000. When converted to a sale price per acre, the prices ranged from $100,265 to $136,700 an average of $119,437. After the adjustment process, the sale rates ranged from $118,000 to $150,000. All factors considered it is our opinion that the market value of the Subject Property via the Direct Comparison Approach as at 30-June-16, is: PREVIOUS APPRAISAL DISCLOSURE AND COMMENTS acres x $135,000 per acre = $2,172,150 $2,170,000(Rounded) The Subject Property was appraised for $2,000,000 effective 30-June-15. The current valuation of $2,170,000 contained in this report implies a percentage increase of 9%. The increase in value is considered reasonable when the favourable market conditions and escalating prices are taken into consideration. 39 Blue Mountain Lands, The Blue Mountains, Ontario

42 MONTERRA PHASE 2 40 MONTERRA PHASE 2 ADDRESS OF PROPERTY UNDER VALUATION Grey Road 21/Grand Cypress Blvd/Augusta Blvd., The Blue Mountains, Grey, Ontario LEGAL DESCRIPTION PIN (LT) CON 1 PT LOT 18 RP 16R8591 PART 1 PROPERTY IDENTIFICATION NUMBER (PIN) OWNERSHIP AND HISTORY The ownership history of the Subject Property is summarized in the following table: PARCEL ID DATE INST. TYPE FROM TO April-13 Transfer - T Westbrook Development Corporation Skyline Blue Mountain Development Inc. SUBJECT PROPERTY USE CURRENT USE Residential Development Land PROPOSED USE 24 Single Family Lots and 28 Townhouse Lots ENCUMBRANCES We do not know of any easements that would adversely affect the site's use. If the reader has specific concerns or desires additional support, we recommend a title search and consultation with a real estate attorney to determine whether any adverse conditions exist. 40 Blue Mountain Lands, The Blue Mountains, Ontario

43 MONTERRA PHASE 2 41 LAND USE ANALYSIS Land use in Ontario may be controlled or directed by provincial restrictions through legislation such as the Planning Act, the Planning and Development Act, etc. Land use is also controlled by municipal restrictions such as Official Plans and Zoning By-Laws and/or other restrictive By-Laws. OFFICIAL PLAN According to the current Official Plan, the Subject Property is designated RR-28- Recreation Residential. Residential development is intended to be primarily for single detached form however, other housing types include duplex or town housing developments may be permitted. Residential density shall not exceed 2.5 units per hectare and must satisfy 40% of the lands comprise a recreational open space component. ZONING BY-LAW According to the current Zoning By-Laws, the Subject Property is designated R Residential, OS2-Open Space. Draft plan approved for 24 single family lots and 28 townhouse lots. PROPERTY ASSESSMENT The property assessment data is summarized in the table below: PROPERTY ASSESSMENT DATA Roll Number: MPAC Property Code & Description: Residential development land Current Value Assessment: $1,677, Blue Mountain Lands, The Blue Mountains, Ontario

44 MONTERRA PHASE 2 42 SITE DESCRIPTION GENERAL Location: Grey Road 21/Grand Cypress Blvd/Augusta Blvd. Configuration: Irregular Corner Influence: Yes Traffic Pattern: Light Site Area: ac. (635,105sf) Current Use: Vacant development lands. Proposed Use: 24 Single Family Lots and 28 Townhouse Units Development Stage: Draft Plan Approval in place Development Timeline: 1-2 Years SITE IMAGE SITE RATING Utility Rating: Good Large parcel with direct access from Grey Road 21. Location Rating: Overall Rating: Good Good In close proximity to Blue Mountain Village and all recreational amenities. Attractive residential development given it locational and physical attributes. 42 Blue Mountain Lands, The Blue Mountains, Ontario

45 MONTERRA PHASE 2 43 SITE DESCRIPTION Services Summary: Access: Topography: Landscaping: Floodplain: Surface Drainage: Sub Surface Conditions: Environmental: Full Municipal Services Available Direct access to Subject Street Flat table land None The Subject Property is not known to be located within a floodplain. No surface drainage issues noted No sub surface issues note. Assume sub surface conditions are similar to surrounding sites. We observed no evidence of toxic or hazardous substances during our inspection of the site, however, we are not trained to perform technical environmental inspections. Should concerns exist, we recommend the hiring of a professional engineer with expertise in this field. SITE & STREET IMPROVEMENTS Street Lights: No Sidewalks: No Curb/Gutter: Available Street Surface: Asphalt Street Width: 2 Lanes Sewers: Available Storms: Available Ditches: Yes Municipal Water: Available Well: No Septic: No Hydro: Available Gas: Available Telephone: Available Comments: The Subject Property is a corner parcel of undeveloped residential land located a short distance from Blue Mountain Village. The layout calls for a single interior thru street and separate cul-de-sac. 43 Blue Mountain Lands, The Blue Mountains, Ontario

46 MONTERRA PHASE 2 44 DIRECT COMPARISON APPROACH INTRODUCTION The Direct Comparison Approach is based on the Principle of Substitution which maintains that a prudent purchaser would not pay more for a property than the cost to purchase a suitable alternative property which exhibits similar physical characteristics, tenancy, location, etc. Within this approach, the property being valued is compared to properties that have sold recently or are currently listed and are considered to be relatively similar to the subject property. Typically, a unit of comparison (i.e. sale price per square foot) is used to facilitate the analysis. In the case of properties similar to the subject, the sale price per acre is the most commonly used unit of comparison. SELECTION OF COMPARABLE SALES As one sale is not necessarily indicative of market value, an appraiser examines a number of market transactions. When properly reconciled, trends emerge, leading to the estimate of market value of the property being appraised. The sales selected are considered to provide the most reliable evidence of market value for the Subject Property. The search yielded 3 sales which were considered to be similar to the Subject Property. The sale prices ranged from $3,109,210 to $5,850,000 an average of $4,250,000. When converted to a sale price per acre, the prices ranged from $100,265 to $136,700 an average of $119,437. Comparable Sales Table Index Address Municipality Region Property Type Site Area Ac Sale Date Sale Price Sale Rate Town Line Barrie Simcoe Land May-14 $3,109,210 $100, th Sideroad Bradford West Gwillimbury Simcoe Land Apr-15 $4,250,000 $136, Mountain Road Collingwood Simcoe Land Jan-16 $5,850,000 $119,437 Minimum May-14 $3,109,210 $100,265 Maximum Jan-16 $5,850,000 $136,700 Median Apr-15 $4,250,000 $119, Blue Mountain Lands, The Blue Mountains, Ontario

47 MONTERRA PHASE 2 45 COMPARABLE SALES MAP 45 Blue Mountain Lands, The Blue Mountains, Ontario

48 MONTERRA PHASE 2 46 ADJUSTMENT CONSIDERATIONS In valuing the subject lands, comparison was made to each of the index sales. consideration of the following criteria listed below. The basis for comparison included the ADJUSTMENT ITEMS Date of Sale Rights Conveyed Financing Conditions of Sale Location Site Utility Development Status Site Area AC Where the market is changing, it may be necessary to adjust prices to reflect the time difference between the date of sale of a comparable property and the date of valuation. When real property rights are sold, they may be the sole subject of the contract or the contract may include other rights. In the sales comparison analysis, it is pertinent that the property rights of the comparable sale be similar to the property rights of the subject property. All the sales considered were Fee Simple transfers, no adjustments were necessary. The transaction price of one property may differ from that of a similar property due to different financing arrangements. Financing arrangements may include existing mortgages at favourable interest rates or paying cash to a lender so that a mortgage with a below-market interest rate could be offered. Adjustments for conditions of sale usually reflect the motivations of the purchaser and vendor. In some cases, the conditions of sale significantly affect transaction prices. Sales that reflect unusual situations require an appropriate adjustment for motivation or sale condition. For example, power-of-sale conditions involve a certain degree of urgency on part of the lender - leading to a somewhat lower sale price than what would otherwise be expected. On the other hand, transactions to create a land assembly may result in higher motivation by the buyer which often leads to a higher sale price than would be expected. An adjustment for location within a market area may be required when the locational characteristics of a comparable property are different from those of the subject property. Excessive locational differences may disqualify a property from use as a comparable. Although no location is inherently desirable or undesirable, the market recognizes that one location is better than, similar to, or worse than another. Site utility adjustments take into account site grading, site size, configuration and other factors that may have impact upon development. Site grading enhances utility and is considered as a value added feature. As site size decreases, certain types of development can become problematic from the standpoint of physical and financial feasibility. A site size that allows for more flexibility in development is favoured over a smaller more restrictive site. The configuration of the site will have impact upon maximum usable area of the site. Oddly configured sites tend to have more leakage of usable land. The development status (i.e. Draft Plan Approved) of a property has a material impact upon the value of a property. Consideration is given for properties which differ significantly in development status. The price per acre of land is expected to vary with the size of the tract. Generally, above an optimum acreage, as size increases, the price per acre decreases where all other features are similar. This is typically referred to as marginal diminishing utility. ANALYSIS OF COMPARABLE SALES The search yielded 3 sales considered similar to the Subject Property. It is acknowledged that sellers and buyers do not actually apply plus or minus adjustments by percentage or by lump sum dollar amounts for individual differences between comparable properties and a Subject Property. They do, however, weigh the advantages and disadvantages of a property they may sell or buy compared to others which have sold or are listed, and make at least an overall adjustment to reflect all of the differences. Descriptive analyses of the sales are outlined on the following pages. Index Town Line (Barrie) was purchased for $3,109,210 ($100,265 per acre) in The property rights conveyed were fee simple and no financing was reportedly provided by the vendor - the sale is considered armslength. Sale of Pine View Golf & Country Club - about 31.0 $100,265. For the development of a subdivision of detached single family homes. It is currently under construction - Pineview Greens is a new single family home development By Royalpark Homes. Upward adjustments were made for Sale Date, Development Status and Site Area 46 Blue Mountain Lands, The Blue Mountains, Ontario

49 MONTERRA PHASE 2 47 Ac. Downward adjustments were made for Location. Adjustments were not required for Property Rights, Financing, Conditions of Sale, Site Utility or Development Density. This sale required a total net upward adjustment - indicating a net adjusted rate of $118,000 per acre. Index th Sideroad (Bradford West Gwillimbury) was purchased for $4,250,000 ($136,700 per acre) in The property rights conveyed were fee simple and financing was reportedly provided by the vendor - the sale is considered arms-length. The site is located across the street from the built-up area of Bradford West Gwillimbury - consisting of new residential development. The farm property is currently leased to a farmer. The purchaser hopes to develop the property (in 1-3 years) for residential use. Upward adjustments were made for Sale Date, Development Status and Site Area Ac. Downward adjustments were made for Location and Site Utility. Adjustments were not required for Property Rights, Financing, Conditions of Sale or Development Density. This sale required a total net upward adjustment - indicating a net adjusted rate of $150,000 per acre. Index Mountain Road (Collingwood) was purchased for $5,850,000 ($119,437 per acre) in The property rights conveyed were fee simple and financing was reportedly provided by the vendor - the sale is considered arms-length. This site is located between Mountain Road and Blue Mountain Golf and Country Club. The site has frontage along Mountain Road and 10th Line. It is currently an agricultural field. Draft Approved Land in Collingwood's west end allows for a mix of singles, towns, and walk-up units at this time up to 304 units total. Also with a commercial element. Zoned REC EP R3-42 R3 C6. Upward adjustments were made for Sale Date, Development Status and Site Area Ac. Downward adjustments were made for Site Utility. Adjustments were not required for Property Rights, Financing, Conditions of Sale, Location or Development Density. This sale required a total net upward adjustment - indicating a net adjusted rate of $137,000 per acre. 47 Blue Mountain Lands, The Blue Mountains, Ontario

50 MONTERRA PHASE 2 48 ADJUSTMENT SUMMARY TABLE Adjustment Summary Table Property Description Subject Property Index 1351 Index 1364 Index 3085 Address/Legal Description Plateau East 343 Town Line th Sideroad 260 Mountain Road City Town of The Blue Mountains Barrie Bradford West Gwillimbury Collingwood Sale Date Effective Date Land Area Sale Price - $3,109,210 $4,250,000 $5,850,000 Sale Rate - $100,265 $136,700 $119,437 Value Adjustments Description Description Adj. Description Adj. Description Adj. Market Condition (Time) Effective Date Property Rights Conveyed Fee Simple Fee Simple Nil Fee Simple Nil Fee Simple Nil Financing Cash Cash Nil VTB Nil VTB Nil Conditions of Sale Normal Normal Nil Normal Nil Normal Nil Location Good Good (+) - Good (+) - Good Nil Site Utility Avg Avg Nil Good - Good - Development Status Good Good + Avg (+) + Good + Site Area Ac Total Net Adjustments Adjusted Rate $118, $150, $137, Blue Mountain Lands, The Blue Mountains, Ontario

51 MONTERRA PHASE 2 49 MARKET VALUE ESTIMATE Before the adjustment process, the sale prices ranged from $3,109,210 to $5,850,000 an average of $4,250,000. When converted to a sale price per acre, the prices ranged from $100,265 to $136,700 an average of $119,437. After the adjustment process, the sale rates ranged from $118,000 to $150,000. All factors considered it is our opinion that the market value of the Subject Property via the Direct Comparison Approach as at 30-June-16, is: PREVIOUS APPRAISAL DISCLOSURE AND COMMENTS acres x $135,000 per acre = $1,968,300 $1,970,000(Rounded) The Subject Property was appraised for $1,800,000 effective 30-June-15. The current valuation of $1,970,000 contained in this report implies a percentage increase of 9%. The increase in value is considered reasonable when the favourable market conditions and escalating prices are taken into consideration. 49 Blue Mountain Lands, The Blue Mountains, Ontario

52 BOATHOUSE 3&4 50 BOATHOUSE 3&4 ADDRESS OF PROPERTY UNDER VALUATION Jozo Weider Blvd, The Blue Mountains, Grey, Ontario LEGAL DESCRIPTION Phase 1 of Grey Standard Condominium Plan No.96 (Mosaic Boathouse at Blue - registered Feb. 28/12, described as Part 1, Plan 16R-10135) PROPERTY IDENTIFICATION NUMBER (PIN) N/A OWNERSHIP AND HISTORY Recent sales history was not available for Subject Property. There is currently a conditional Agreement of Purchase and Sale for the Subject Property. Details were not disclosed. SUBJECT PROPERTY USE CURRENT USE Vacant commercial development land PROPOSED USE Commercial/Retail Buildings (5,000sf) ENCUMBRANCES We do not know of any easements that would adversely affect the site's use. If the reader has specific concerns or desires additional support, we recommend a title search and consultation with a real estate attorney to determine whether any adverse conditions exist. LAND USE ANALYSIS Land use in Ontario may be controlled or directed by provincial restrictions through legislation such as the Planning Act, the Planning and Development Act, etc. Land use is also controlled by municipal restrictions such as Official Plans and Zoning By-Laws and/or other restrictive By-Laws. 50 Blue Mountain Lands, The Blue Mountains, Ontario

53 BOATHOUSE 3&4 51 OFFICIAL PLAN According to the current Official Plan, the Subject Property is designated Blue Mountain Village Core. ZONING BY-LAW According to the current Zoning By-Laws, the Subject Property is designated C5-67-Commercial. Draft Plan of Condominium Approved as Phased Development. Opportunity to build two commercial buildings up to 5,000 square feet of commercial buildings. PROPERTY ASSESSMENT The property assessment data is summarized in the table below: PROPERTY ASSESSMENT DATA Roll Number: Part of MPAC Property Code & Description: Current Value Assessment: Vacant commercial land NA VILLAGE RETAIL SPACE The Subject property is located within the established and well known Blue Mountain Resort located within the Town of Blue Mountains. The Blue Mountain Resort is well known for all-season activities, including alpine skiing, golfing, crosscountry skiing and cycling. The Subject parcel is located at the bottom of the Blue mountain ski hill known as the Village.There are approximately 23 units or 53,162 square feet of retail space in the village. As of January 1, 2016, the occupancy level is 94.1%. The commercial units have access from Jozo Weider Boulevard. The Village is a pedestrian friendly thoroughfare where no cars are allowed. 51 Blue Mountain Lands, The Blue Mountains, Ontario

54 BOATHOUSE 3&4 52 SITE DESCRIPTION GENERAL Location: Blue Mountain Village Core Lands - Fronting Georgian Bay Way Configuration: Irregular Corner Influence: No Traffic Pattern: Light Site Area: 0.37 ac. (16,146) Current Use: Vacant commercial development land. Proposed Use: Retail buildings Development Stage: Draft Plan of Condominium Approved as Phased Development Development Timeline: Immediate SITE IMAGE SITE RATING Utility Rating: Excellent Relatively large retail parcel fronting onto Georgian Way. Visibility Rating: Excellent Central area of Blue Mountain Village with frontage onto Mill Pond. Location Rating: Excellent Central area of Blue Mountain Village with frontage onto Mill Pond. Overall Rating: Excellent Prime retail location within Blue Mountain Village Area. 52 Blue Mountain Lands, The Blue Mountains, Ontario

55 BOATHOUSE 3&4 53 DESCRIPTION Services Summary: Access: Topography: Landscaping: Floodplain: Surface Drainage: Sub Surface Conditions: Environmental: Full Municipal Services Available Direct access to Georgian Bay Way Flat table land The Subject Property is improved with sodding, trees and bushes The Subject Property is not known to be located within a floodplain. No surface drainage issues noted No sub surface issues note. Assume sub surface conditions are similar to surrounding sites. We observed no evidence of toxic or hazardous substances during our inspection of the site, however, we are not trained to perform technical environmental inspections. Should concerns exist, we recommend the hiring of a professional engineer with expertise in this field. SITE & STREET IMPROVEMENTS Street Lights: Yes Sidewalks: Yes Curb/Gutter: No Street Surface: NA Street Width: NA Sewers: Yes Storms: Yes Ditches: No Municipal Water: Yes Well: No Septic: No Hydro: Yes Gas: Yes Telephone: Yes Comments: The Subject Property is part of a larger commercial site located within the Blue Mountain Village core area. The site will support a commercial building of approximately 5,000sf and has exposure onto a small pond located in the village area. 53 Blue Mountain Lands, The Blue Mountains, Ontario

56 BOATHOUSE 3&4 54 INCOME APPROACH (LAND RESIDUAL) This is a method of estimating residual value in this case the value of Subject Lands As-Is. Direct and indirect costs and entrepreneurial profit are deducted from an estimate of the anticipated gross sale price of the complete commercial building. The resultant value represents the value of the Subject Lands As Is. In order to estimate the Subject Project As Is value using this method, the following steps are performed: Market Value of Subject Project As Complete the market value of the proposed project as complete is estimated using the Income Approach (Direct Capitalization Methodology); Building Direct and Indirect Costs - the direct and indirect costs for the subject are estimated; Entrepreneurial Profit - a reasonable developer s profit is estimated for the project; and Land Value the net resultant value is calculated, representing the current value of the Subject Land. 1. MARKET VALUE OF SUBJECT PROJECT AS COMPLETE The market value of the subject project as complete is estimated using the Income Approach (Direct Capitalization Methodology). The Income Approach is a method of converting the anticipated economic benefits of owning property into a value through the capitalization process. The principle of anticipation underlies this approach in that investors recognize the relationship between an asset s income and its value. The two most common methods of converting net income into value are the Direct Capitalization Method and Discounted Cash Flow Method. In the Direct Capitalization Method, net operating income is divided by an overall capitalization rate to indicate an opinion of market value. In the Discounted Cash Flow Method, anticipated future cash flows and a reversionary value are discounted to an opinion of net present value at a chosen yield rate (internal rate of return). Purchasers acquiring this type of asset not only look at year one returns, but also consider longer-term strategies. METHODOLOGY The Direct Capitalization Method is considered the best methodology by which to develop the Income Approach in this instance. A typical investor would consider income in place for this type of property as opposed to a more complicated cash flow methodology. REVENUE ANALYSIS In order to determine an appropriate market rent for the Income Pro forma, a review of market lease transactions was conducted. The following tables summarize rental activity for retail space in competing buildings within the Blue Mountain Village Area. 54 Blue Mountain Lands, The Blue Mountains, Ontario

57 BOATHOUSE 3&4 55 Comparable Market Leases Unit Tenant Name Building SQFT. Current RENT/SF Next Step Up/SF Lease Start Date Lease End Date BH-1 Kaytoo Boat Houses 2,800 $57.59 $ Jul Jun-19 BH-2 WildWing Boat Houses 1,654 $45.20 $ Jul Jun-19 C-10 Glama Gal Tw een Seasons 857 $35.00 $ Jun May-20 C-11 Go Fish Go Seasons 989 $31.00 $ Mar Feb-18 C-13 Tw ist Seasons 2,011 $57.80 $ Sep Dec-16 C-15 Tholos Seasons 2,529 $53.43 $ Jun Jun-16 C-8 Crock A Doodle Seasons 847 $30.67 $ Jul Jun-22 C-9a One Tooth Seasons 483 $33.48 $ Jul Dec-15 C-9b Georgian Christmas Seasons 1,185 $38.00 $ Sep Dec-17 C-9c Menchies Yogurt Seasons 1,284 $42.00 $ Jul Dec-22 CB-1a Chuck Burger Seasons 832 $40.00 $ Jul Jun-19 CB-1b Jack and Maddy Seasons 1,069 $33.00 $ Jul Jun-19 CB-2 Olde Stanton Store Seasons 1,161 $42.00 $ Jul Jun-19 D-1 Magnone's Mosaic 2,151 $57.80 $ Jan Dec-21 D-2 Kikaku Sushi Bar Mosaic 785 $44.50 $ Jun Dec-15 D-3 Brights Gallery Mosaic 1,308 $36.15 $ Apr Dec-17 D-4a Tonia DeBellis Mosaic 604 $35.00 $ Nov Oct-15 D-5a Sunset Grill Mosaic 1,557 $55.57 $ Jun Dec-17 D-5b Royal Majesty Mosaic 943 $50.61 $ May Dec-17 D-7 IWA Spa Mosaic 1,277 $22.00 $ Nov Oct-25 D-8 North Face Mosaic 2,635 $30.00 $ Nov Oct-19 H1 Oliver & Bonacini Westin Trillium 4,828 $43.50 $ Nov Jun-16 Minimum 483 $22.00 $ Nov Oct-15 Maximum 4,828 $57.80 $ Jun Oct-25 Average 1,536 $41.56 $ Sep Jan-19 Current market rents range between $22.00psf and $57.80psf. The Boat Houses would provide the best comparison with the proposed Subject Building and to that end a rate of $52psf Net would not only be supported by the two Boat House rents, but by the other rates presented in the above table. OPERATING EXPENSES The retail lease will be written on a fully net basis, with the tenant being responsible for all operating costs. GENERAL VACANCY & COLLECTION ALLOWANCE It is our understanding that the village retail space is fully occupied. Based on the assumed term of the lease, the nature of the improvements and marketing time required for space absorption, a stabilized vacancy rate of 2.5% of Potential Gross Income is considered reasonable and selected. No collection loss/bad debt has been factored, as concerns which an investor may have in this regard would most likely be addressed in the selection of the overall yield. MANAGEMENT FEE Typically, a management fee is deducted from the Effective Gross Income. This deductible includes the expenses for management. A deduction of 5.0% is considered reasonable and is factored into the analysis. 55 Blue Mountain Lands, The Blue Mountains, Ontario

58 BOATHOUSE 3&4 56 INVESTMENT ANALYSIS As part of our analysis, we reviewed an investment survey published by Altus Insite. Subject to adjustment for geographic location/market, it is our opinion that these cap rates better reflect the asset under analysis as opposed to more local yet less investment grade properties. The rates presented below provide for a stable benchmark rate for the Toronto market to which a reasonable adjustment can be made to account for its secondary market location. This survey indicates that cap rates for single tenant retail properties are in the 5.4% range for Toronto. Factoring in the Subject Property s location, market area and quality of asset, a cap rate of 7.40% (200bps above the above survey rate) appears to be reasonable, given the project and secondary market location. DIRECT CAPITALIZATION METHOD INCOME PRO FORMA The results of the above Revenue and Expense Analysis are summarized in the pro forma presented below. Potential Gross Revenue Income Pro Forma Twelve months forthcoming SF Total $ PSF Boathouse 5,000 $260,000 $52.00 Total Potential Gross Revenue 5,000 $260,000 $52.00 Vacancy and Collection Loss 2.5% $6,500 $1.30 Effective Gross Revenue $253,500 $50.70 Non Recoverable Operating Expenses Management Expense 5.0% $12,675 $2.54 Total Operating Expenses $12,675 $2.54 Net Operating Income $240,825 $ Blue Mountain Lands, The Blue Mountains, Ontario

59 BOATHOUSE 3&4 57 FINAL ESTIMATE OF VALUE The final estimate of value via the Direct Capitalization Approach is presented in the table below: Therefore, it is our opinion that the current market value of the Subject Property as improved via the Income Approach, as at 30-June-16 is $3,254, BUILDING DIRECT AND INDIRECT COSTS The building direct and indirect costs are based upon the Toronto Real Estate Board Rough/Advanced Guide to Construction Costs. Based upon the aforementioned report, a small commercial retail unit is estimated to cost approximately $173psf to construct. Therefore, the cost of construction for a 5,000sf retail building on the Subject Lands is: $173psf x 5,000sf = $867, ENTREPRENEURIAL PROFIT Direct Capitalization Approach OCR NOI Estimate of Value $psf 6.90% $240,825 $3,490,217 $ % $240,825 $3,368,182 $ % $240,825 $3,254,392 $ % $240,825 $3,148,039 $ % $240,825 $3,048,418 $610 The Developer s Profit is defined to be that profit earned or anticipated to be earned above costs, from the completion of the project. The estimate reflects the development stage of the subject lands and the market conditions at the effective date. Although such an allowance for profit is often difficult to substantiate by direct market evidence, discussion with active market participants tend to indicate a range from 15% to 25% for a reasonable return on the risk associated with developing land. In the subject s case, the lands are fully zoned with municipal services at the street curb and having some existing improvements. The timing and market conditions would suggest a moderate degree of risk in developing the lands and selling the completed project. It is concluded that an appropriate allowance in this instance would be 25.00% of the gross revenues - the mid-range of the probable scale for developer or entrepreneurial profit. The entrepreneurial profit is estimated to be 25% x $3,254,392 = $813, Blue Mountain Lands, The Blue Mountains, Ontario

60 BOATHOUSE 3& AS IS PROJECT VALUE Based upon the above analysis the residual/land value as at 30-June-16 is estimated to be $1,575,000 (Rounded) or $97psf. Residual Land Value Estimate Twelve months forthcoming Total Rate Estimated Market Value $3,254,392 $651 psf Gross Floor Area (sf) 5,000 Land Size (sf) 16,146 Development Costs Hard and Soft Costs $867,000 $173 psf Developer's profit $813, % Total Costs $1,680,598 Estimated Residual Land value $1,573,794 $97 psf PREVIOUS APPRAISAL DISCLOSURE AND COMMENTS The Subject Property was appraised for $1,652,000 effective 30-June-15. The current valuation of $1,573,794 contained in this report considers a slightly higher developer profit of 25% as market data is indicating that developers are attaining profit margins closer to the 25% range as opposed to the 20% percent range. This change in value is considered reasonable when higher profit margins are factored into this analysis. 58 Blue Mountain Lands, The Blue Mountains, Ontario

61 VILLAGE CORE LANDS 59 VILLAGE CORE LANDS ADDRESS OF PROPERTY UNDER VALUATION Jozo Weider Boulevard/Canning Drive, The Blue Mountains, Grey, Ontario LEGAL DESCRIPTION FIRSTLY: Lots 6, 10, 15 and 15 PLAN 1065 and Part Village Crescent PLAN 1065, designated as Parts 1 to 12 PLAN 16R-8744 except Grey Standard Condominium Plan No. 65 and Grey Standard Condominium Plan No. 66, Part 1 PLAN 16R-9223, Parts 18-23, PLAN 16R-8762, Parts 7 to 10 and 12 PLAN 16R-8744,, Part 12, PLAN 16R-9223, Part1 PLAN 16R-9266, Part 2 PLAN 16R-9223, Grey Standard Condominium Plan No.96 SECONDLY: PIN (LT) Part Lots 14 and 15 and Part Village Crescent (partly closed by By-law Instrument No. R280663, partly closed by By-law , Instrument No.R422716, and partly closed by By-law , Instrument No.R422717) PLAN 1065, designated as Parts 1 to 5 PLAN 16R-9197 except Parts 9 to 11, PLAN 16R PROPERTY IDENTIFICATION NUMBER (PIN) NA OWNERSHIP AND HISTORY Recent sales history was not available for Subject Property. There is currently a conditional Agreement of Purchase and Sale for part of the Subject Property, dated April 5, 2016 and a purchase price of $4,750,000. The area is estimated to be between 3 and 3.5 acres this would indicate an acreage rate of approximately $1,500,000. The purchaser intends to develop condo/hotel type units. SUBJECT PROPERTY USE CURRENT USE Vacant commercial development land PROPOSED USE 434 Condo Hotel Units, 14 Townhouse Units, 15,000 SF of Commercial Space ENCUMBRANCES We do not know of any easements that would adversely affect the site's use. If the reader has specific concerns or desires additional support, we recommend a title search and consultation with a real estate attorney to determine whether any adverse conditions exist. 59 Blue Mountain Lands, The Blue Mountains, Ontario

62 VILLAGE CORE LANDS 60 LAND USE ANALYSIS Land use in Ontario may be controlled or directed by provincial restrictions through legislation such as the Planning Act, the Planning and Development Act, etc. Land use is also controlled by municipal restrictions such as Official Plans and Zoning By-Laws and/or other restrictive By-Laws. OFFICIAL PLAN According to the current Official Plan, the Subject Property is designated Mountain Village Core. ZONING BY-LAW According to the current Zoning By-Laws, the Subject Property is designated C5-67-Commercial and C5-68-Commercial. Preliminary plans are for 434 condo hotel units and 14 townhouse units plus 15,000 sf of commercial. PROPERTY ASSESSMENT The property assessment data is summarized in the table below: PROPERTY ASSESSMENT DATA Roll Number: Part of MPAC Property Code & Description: Vacant commercial land Current Value Assessment: $5,093, Blue Mountain Lands, The Blue Mountains, Ontario

63 VILLAGE CORE LANDS 61 SITE DESCRIPTION GENERAL Configuration: Irregular Corner Influence: Yes Traffic Pattern: Light Site Area: ac. (469,577) Current Use: Proposed Use: Development Stage: Development Timeline: SITE IMAGE Vacant commercial development land. 434 Condo Hotel Units 14 Townhouse Units (Total: 448 residential units) and 15,000 SF of Commercial Space Draft Plan of Condominium Approved as Phased Development Immediate SITE RATING Utility Rating: Excellent Large parcel with two road frontages Visibility Rating: Excellent Central area of Blue Mountain Village with frontage onto Mill Pond. Location Rating: Excellent Central area of Blue Mountain Village with frontage onto Mill Pond. Overall Rating: Excellent Prime retail location within Blue Mountain Village Area. 61 Blue Mountain Lands, The Blue Mountains, Ontario

64 VILLAGE CORE LANDS 62 DESCRIPTION Services Summary: Access: Topography: Landscaping: Floodplain: Surface Drainage: Sub Surface Conditions: Environmental: Full Municipal Services Installed Direct access to Subject Streets Flat table land The Subject Property is improved with sodding, trees and bushes The Subject Property is not known to be located within a floodplain. No surface drainage issues noted No sub surface issues note. Assume sub surface conditions are similar to surrounding sites. We observed no evidence of toxic or hazardous substances during our inspection of the site, however, we are not trained to perform technical environmental inspections. Should concerns exist, we recommend the hiring of a professional engineer with expertise in this field. SITE & STREET IMPROVEMENTS Street Lights: Yes Sidewalks: Yes Curb/Gutter: Yes Street Surface: Asphalt Street Width: 2 Lanes Sewers: Available Storms: Available Ditches: No Municipal Water: Available Well: No Septic: No Hydro: Available Gas: Available Telephone: Available Comments: This property makes up part of the core lands for Blue Mountain Village. 62 Blue Mountain Lands, The Blue Mountains, Ontario

65 VILLAGE CORE LANDS 63 AERIAL VIEW OF VILLAGE 63 Blue Mountain Lands, The Blue Mountains, Ontario

66 VILLAGE CORE LANDS 64 DIRECT COMPARISON APPROACH INTRODUCTION The Subject Lands are zoned commercial and based upon preliminary plans, there are 448 residential units planned, 14 of which are to be townhouse type units. In addition, 15,000 square feet of commercial space is also allocated/planned as part of these lands. For purposes of this valuation, the sale price per residential unit will be used to estimate the market value of land this rate will be subsequently adjusted to account for the planned commercial space. DIRECT COMPARISON APPROACH The Direct Comparison Approach is based on the Principle of Substitution which maintains that a prudent purchaser would not pay more for a property than the cost to purchase a suitable alternative property which exhibits similar physical characteristics, tenancy, location, etc. Within this approach, the property being valued is compared to properties that have sold recently or are currently listed and are considered to be relatively similar to the subject property. Typically, a unit of comparison (i.e. sale price per square foot) is used to facilitate the analysis. In the case of properties similar to the subject, the sale price per residential unit is the most commonly used unit of comparison. SELECTION OF COMPARABLE SALES As one sale is not necessarily indicative of market value, an appraiser examines a number of market transactions. When properly reconciled, trends emerge, leading to the estimate of market value of the property being appraised. The sales selected are considered to provide the most reliable evidence of market value for the Subject Property. The search yielded 5 sales which were considered to be similar to the Subject Property. The sale prices ranged from $950,000 to $5,880,000 a median of $3,250,000. When converted to a sale price per unit, the prices ranged from $18,797 to $42,553 a median of $25,106. Comparable Sales Table SaleID Address Municipality Property Type Property Sub Type Site Area Ac Total Site Units Sale Date Sale Price Sale Rate 1229 Madelaine Dr Barrie Land Planned Development (PUD) $5,880,000 $30, Sydenham Wells Barrie Land Multi-Family - Townhouse $4,000,000 $42, ,84,90 Ardagh Road Barrie Land Multi-Family - Apartment $950,000 $20, Yonge Street Richmond Hill Land Multi-Family - Apartment $2,500,000 $18,797 Minimum $950,000 $18,797 Maximum $5,880,000 $42,553 Median $3,250,000 $25, Blue Mountain Lands, The Blue Mountains, Ontario

67 VILLAGE CORE LANDS 65 COMPARABLE SALES MAP 65 Blue Mountain Lands, The Blue Mountains, Ontario

68 VILLAGE CORE LANDS 66 ADJUSTMENT CONSIDERATIONS In valuing the subject lands, comparison was made to each of the index sales. consideration of the following criteria listed below. The basis for comparison included the ADJUSTMENT ITEMS Date of Sale Rights Conveyed Financing Conditions of Sale Location Where the market is changing, it may be necessary to adjust prices to reflect the time difference between the date of sale of a comparable property and the date of valuation. When real property rights are sold, they may be the sole subject of the contract or the contract may include other rights. In the sales comparison analysis, it is pertinent that the property rights of the comparable sale be similar to the property rights of the subject property. All the sales considered were Fee Simple transfers, no adjustments were necessary. The transaction price of one property may differ from that of a similar property due to different financing arrangements. Financing arrangements may include existing mortgages at favourable interest rates or paying cash to a lender so that a mortgage with a below-market interest rate could be offered. Adjustments for conditions of sale usually reflect the motivations of the purchaser and vendor. In some cases, the conditions of sale significantly affect transaction prices. Sales that reflect unusual situations require an appropriate adjustment for motivation or sale condition. For example, power-of-sale conditions involve a certain degree of urgency on part of the lender - leading to a somewhat lower sale price than what would otherwise be expected. On the other hand, transactions to create a land assembly may result in higher motivation by the buyer which often leads to a higher sale price than would be expected. An adjustment for location within a market area may be required when the locational characteristics of a comparable property are different from those of the subject property. Excessive locational differences may disqualify a property from use as a comparable. Although no location is inherently desirable or undesirable, the market recognizes that one location is better than, similar to, or worse than another. Unit Count Large projects generally take longer to absorb and are subject to greater risk. Adjustments are considered for projects which vary in proposed size in terms of planned units. Unit Type Townhouses on a unit basis are typically more valuable as compared to apartment units. Adjustments are considered for projects which vary unit type mix. ANALYSIS OF COMPARABLE SALES The search yielded 3 sales considered similar to the Subject Property. It is acknowledged that sellers and buyers do not actually apply plus or minus adjustments by percentage or by lump sum dollar amounts for individual differences between comparable properties and a Subject Property. They do, however, weigh the advantages and disadvantages of a property they may sell or buy compared to others which have sold or are listed, and make at least an overall adjustment to reflect all of the differences. Descriptive analyses of the sales are outlined on the following pages. Index Madelaine Dr (Barrie) was purchased for $5,880,000 ($30,000 per unit ) in The property rights conveyed were fee simple and no financing was reportedly provided by the vendor - the sale is considered armslength. This sale is located in the south east section of Barrie - an established residential area. It is approved for the development of 196 residential units (Townhomes, Stacked Townhomes and Condo Apartments). Adjustments were not required for Property Rights, Financing, Conditions of Sale or Other. This sale required a total net downward adjustment - indicating a net adjusted rate of $22,000 per unit. Index Sydenham Wells (Barrie) was purchased for $4,000,000 ($42,553 per unit) in The property rights conveyed were fee simple and no financing was reportedly provided by the vendor - the sale is considered arms-length. This sale is an infill lot in an established residential area, south of Georgian Drive and on the west side of Penetanguishene Road. The site plan approves for 94 stacked townhomes in a 3 storey building. 66 Blue Mountain Lands, The Blue Mountains, Ontario

69 VILLAGE CORE LANDS 67 Construction beginning in Upward adjustments were made for Sale Date. Downward adjustments were made for Location, Unit Count and Unit Type. Adjustments were not required for Property Rights, Financing, Conditions of Sale or Other. This sale required a total net downward adjustment - indicating a net adjusted rate of $24,500 per unit. Index ,84,90 Ardagh Road (Barrie) was purchased for $950,000 ($20,212 per unit ) in The property rights conveyed were fee simple and no financing was reportedly provided by the vendor - the sale is considered arms-length. Upward adjustments were made for Sale Date and Location. Downward adjustments were made for Unit Count. Adjustments were not required for Property Rights, Financing, Conditions of Sale, Unit Type or Other. This sale required a total net upward adjustment - indicating a net adjusted rate of $23,500 per unit. Index Yonge Street (Richmond Hill) was purchased for $2,500,000 ($18,797 per unit ) in The property rights conveyed were fee simple and no financing was reportedly provided by the vendor - the sale is considered arms-length. Upward adjustments were made for Sale Date. Downward adjustments were made for Location and Unit Count. Adjustments were not required for Property Rights, Financing, Conditions of Sale, Unit Type or Other. This sale required a total net downward adjustment - indicating a net adjusted rate of $17,000 per unit. 67 Blue Mountain Lands, The Blue Mountains, Ontario

70 VILLAGE CORE LANDS 68 Adjustment Summary Table Property Description Subject Property Index 1229 Index Index Index Address/Legal Description Blue Mountains Madelaine Dr 85 Sydenham Wells 76,84,90 Ardagh Road Yonge Street City Collingwood Barrie Barrie Barrie Richmond Hill Sale Date Effective Date Land Area Sale Price $9,766,800 $5,880,000 $4,000,000 $950,000 $2,500,000 Sale Rate $21,801 $30,000 $42,553 $20,213 $18,797 Value Adjustments Description Description Adj. Description Adj. Description Adj. Description Adj. Market Condition (Time) Effective Date June 23, December 19, October 18, May 13, Property Rights Conveyed Fee Simple Fee Simple Nil Fee Simple Nil Fee Simple Nil Fee Simple Nil Financing Cash Cash Nil Cash Nil Cash Nil Cash Nil Conditions of Sale Normal Normal Nil Normal Nil Normal Nil Normal Nil Location Avg(+) Good - Good - Avg + Good - Unit Count Unit Type Apt, TH TH, Apt - TH - Apt Nil Apt Nil Total Net Adjustments Adjusted Rate $22, $24, $23, $17, Blue Mountain Lands, The Blue Mountains, Ontario

71 VILLAGE CORE LANDS 69 MARKET VALUE ESTIMATE Before the adjustment process, the sale prices ranged from $950,000 to $5,880,000 a median of $3,250,000. When converted to a sale price per unit, the prices ranged from $18,797 to $42,553 a median of $25,106. After the adjustment process, the unit rates ranged from $17,000 to $24,500 a median of $23,250. While the sales are not located in the immediate market area, these sales are considered the best estimators of market value for the Subject Property. Similar to the subject lands, they are located in markets that have a demonstrated demand for higher density housing. With the exception of the subject project there are no other similar high density transactions in the immediate market area. All factors considered it is our opinion that the market value of the Subject Property via the Direct Comparison Approach as at 30-June-16, is: COMMERCIAL COMPONENT VALUE ADD $20,000 per unit x 448 units = $8,960,000 As mentioned earlier in this section, the commercial component represents a value addition to the residential rate of $20,000 per unit. In order to estimate a reasonable value for the commercial component, reference is made to the previous Boathouse 3 & 4 valuation exercise and the valuation model presented therein. A similar exercise is suggested for this calculation as it will incorporate the rental potential and hence value potential of this commercial space. In this instance and size of the space is changed to 15,000sf and the rental rate is adjusted downward to account for the less premium location this space may accommodate as compared to the Boathouse locations. A rental rate between $25psf and $30psf say $27.50psf would appear to be reasonable this rate is between the average rate and a rate well below the maximum of surveyed lease rates for the village area. Based upon these factors, it is estimated that the commercial component contributes an additional $1,270,000 (see Addendum for model details and calculations). MARKET VALUE ESTIMATE All factors considered it is our opinion that the market value of the Subject Property via the Direct Comparison Approach as at 30-June-16, is: $8,960,000 + $1,270,000 = $10,230,000 The current value estimate of $948,980 per acre for acres is considered consistent with the current agreement of purchase and sale price of approximately $1,500,000. The aforementioned agreement includes only 3 to 3.5 acres of land, thereby increasing the acreage rate when compared to a much larger parcel. PREVIOUS APPRAISAL DISCLOSURE AND COMMENTS The Subject Property was appraised for $6,200,000 effective 30-June-15. The current valuation of $10,230,000 ($948,980 per acre) contained in this report implies a percentage increase of approximately 65%. In prior years, it was deemed that a commercial land rate was a more balanced and reliable estimate of market value for the Subject Property. With the recent and significant increase in residential demand for the Collingwood market - including multi residential - a valuation model more focused on multi-residential development is warranted. This is underscored with the current accepted agreement of purchase and sale for part of the subject property - for approximately $1,500,000 per acre. The purchaser in this instance, plans a townhouse project. 69 Blue Mountain Lands, The Blue Mountains, Ontario

72 MOUNTAIN WALK II 70 MOUNTAIN WALK II ADDRESS OF PROPERTY UNDER VALUATION Jozo Weider Boulevard/ Wintergreen Place, The Blue Mountains, Grey, Ontario LEGAL DESCRIPTION PIN (LT) Parts of Lot 1, Registered Plan 1065, designated as Parts 4, 5 and 6, Plan 16R-3456 PROPERTY IDENTIFICATION NUMBER (PIN) OWNERSHIP AND HISTORY The ownership history of the Subject Property is summarized in the following table: PARCEL ID DATE INST. TYPE FROM TO April-13 Transfer - T Intrawest Corporation Skyline Blue Mountain Development Inc. SUBJECT PROPERTY USE CURRENT USE Parking Lot PROPOSED USE Undetermined EASEMENTS We do not know of any easements that would adversely affect the site's use. If the reader has specific concerns or desires additional support, we recommend a title search and consultation with a real estate attorney to determine whether any adverse conditions exist. LAND USE ANALYSIS Land use in Ontario may be controlled or directed by provincial restrictions through legislation such as the Planning Act, the Planning and Development Act, etc. Land use is also controlled by municipal restrictions such as Official Plans and Zoning By-Laws and/or other restrictive By-Laws. OFFICIAL PLAN According to the current Official Plan, the Subject Property is designated Medium Density Residential. ZONING BY-LAW According to the current Zoning By-Laws, the Subject Property is designated R8-208-Residential. 70 Blue Mountain Lands, The Blue Mountains, Ontario

73 MOUNTAIN WALK II 71 Presently used for parking (Can only be developed if replacement parking is provided elsewhere on the resort.) PROPERTY ASSESSMENT The property assessment data is summarized in the table below: PROPERTY ASSESSMENT DATA Roll Number: MPAC Property Code & Description: Residential development land Current Value Assessment: $2,160, Blue Mountain Lands, The Blue Mountains, Ontario

74 MOUNTAIN WALK II 72 SITE DESCRIPTION GENERAL Location: Jozo Weider Boulevard/ Wintergreen Place Configuration: Irregular Corner Influence: Yes Traffic Pattern: Light Site Area: 4.46 ac. (194,278) Current Use: Village overflow parking. Proposed Use: Medium Density Residential Development Stage: Plan of Condominium Required Development Timeline: Undefined. SITE IMAGE SITE RATING Utility Rating: Good Rectangular site with onsite parking Location Rating: Overall Rating: Good Good In close proximity to Blue Mountain Village and all recreational amenities. Attractive residential development given it locational and physical attributes. 72 Blue Mountain Lands, The Blue Mountains, Ontario

75 MOUNTAIN WALK II 73 DESCRIPTION Services Summary: Access: Topography: Landscaping: Floodplain: Surface Drainage: Sub Surface Conditions: Environmental: Full Municipal Services Installed Direct access to Subject Street Flat table land None The Subject Property is not known to be located within a floodplain. No surface drainage issues noted No sub surface issues note. Assume sub surface conditions are similar to surrounding sites. We observed no evidence of toxic or hazardous substances during our inspection of the site, however, we are not trained to perform technical environmental inspections. Should concerns exist, we recommend the hiring of a professional engineer with expertise in this field. SITE & STREET IMPROVEMENTS Street Lights: Yes Sidewalks: No Curb/Gutter: No Street Surface: Asphalt Street Width: 2 Lanes Sewers: Available Storms: Available Ditches: No Municipal Water: Available Well: No Septic: No Hydro: Available Gas: Available Telephone: Available Comments: The site is used for exclusively for parking. 73 Blue Mountain Lands, The Blue Mountains, Ontario

76 MOUNTAIN WALK II 74 VALUATION ESTIMATE INTRODUCTION This property is currently used for Village overflow parking and it is our understanding that it is subject to a title restriction in an agreement with Blue Mountain Resorts. Development of this site can only occur if an alternative site or costly underground/above ground parkade can be attained. An above ground parkade is estimated to cost approximately $20,000 per spot ($6,000,000 for 300 spots), while underground parking is estimated to cost $30,000 per spot ($9,000,000 for 300 spots). Furthermore, it was determined that paid parking at this point in time would not be an option - as it would not be acceptable to all parties with interest in the resort. VALUE ESTIMATE The site is zoned for 26 attached multiple residential units and reflects a density of 5.83 units per acre. However, the only way to extract value from this site in the short-term is to replace parking elsewhere within the resort. MEDIUM DENSITY VALUE ESTIMATE A search of medium density sales was conducted in the subject market area. Four sales were considered to provide the most reliable evidence of market value for the Subject Property. The search yielded 4 sales which were considered to be similar to the Subject Property. The sale prices ranged from $714,000 to $2,000,000. When converted to a sale price per Site AC, the prices ranged from $44,625 per unit to $67,000 per unit. (See Addendum for sales details) The immediate subject area is considered a premium market area and for that reason, all the sales required upward adjustments for location except Index Upward time adjustments at different degrees were also considered for the all the sales. Given the immediate proximity of Index 3097, it is considered the best sale and deemed to best represent the potential sale rate for the Subject Property. It is reasonable to conclude that a market rate for the Subject Lands to be $70,000 per unit. Based upon this rate, the estimated market value of the Subject Property under this scenario would be $72,000 x 26 units = $1,872,000. SPECULATIVE VALUE UNDER DEVELOPMENT RESTRICTIONS Comparable Sales Table Index Address Municipality Region Property Type Total Site Units Site Area Ac Sale Date Sale Price Sale Rate Ruthven Crescent New Tecumseth Simcoe Land Feb-15 $1,900,000 $70, Plan 51M-798 Blocks 7, 9 & 11 Wasaga Beach Simcoe Land Oct-11 $714,000 $44, Stonemount Crescent Essa Simcoe Land Oct-11 $1,530,000 $63, Snowbridge Way The Blue Mountains Grey Land Feb-16 $2,000,000 $71,429 Minimum Oct-11 $714,000 $44,625 Maximum Feb-16 $2,000,000 $71,429 Median Jun-13 $1,715,000 $67,060 The only market value the Subject Property would have is speculative value based upon an assumption that parking would eventually be found or the utility it provides to the overall resort could be monetized in some other manner whether through paid parking or special levies to all its stakeholders. A prudent purchaser would choose at least a 10-year investment time frame for such an investment proposition. The IRR would need to be approximately 25% (comparable to returns demanded by many residential developers in the market) and an inflation rate estimate of 2%. 74 Blue Mountain Lands, The Blue Mountains, Ontario

77 MOUNTAIN WALK II 75 Based upon the above parameters, the Subject Lands would have a terminal value of $2,193,346 (10 years hence) and a present value of $240,219. Based upon the above scenario, the market value of the Subject Property as at 30-June-16, is: $240,000 (Rounded) PREVIOUS APPRAISAL DISCLOSURE AND COMMENTS The Subject Property was appraised for $234,000 effective 30-June-15. The current valuation of $240,000 contained in this report implies a percentage increase of 2.5%. Given the nature of the lands, a marginal increase of 2.5% would appear reasonable. 75 Blue Mountain Lands, The Blue Mountains, Ontario

78 CERTIFICATION OF APPRAISAL 76 CERTIFICATION OF APPRAISAL I certify to the best of my knowledge and belief that: The statements of fact contained in this report are true and correct; The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, impartial and unbiased professional analyses, opinions and conclusions; I have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved; I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment; My engagement in and compensation for this assignment were not contingent upon developing or reporting predetermined results, the amount of the value estimate, or a conclusion favouring the client; My analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the Canadian Uniform Standards; I have the knowledge and experience to complete the assignment competently; No one provided significant professional assistance to the person signing this report; As of the date of this report, the undersigned has fulfilled the requirements of The Appraisal Institute of Canada Continuing Professional Development Program for Members; The undersigned is a member in good standing of the Appraisal Institute of Canada. I did personally inspect the Subject Property of the report; FINAL VALUE ESTIMATE Having regard to all the information contained in this report, it is my opinion that the market value of the Subject Property, as at 30-June-16 is: Respectfully submitted, BLUE MOUNTAIN RESORT DEVELOPMENT LANDS No. Property Estimated Market value 1 Monterra South/Second Nature (South & North Half) $10,815,000 2 Plateau East $2,170,000 3 Monterra Phase 2 $1,970,000 4 Boathouse 3 and 4 Lands $1,575,000 5 Village Core Lands $10,230,000 6 Mountain Walk II $240,000 Total $27,000,000 Toivo Heinsaar, BA, AACI, P.App., MRICS Partner CHS Realty Advisors Inc. theinsaar@chsrealtyadvisors.com 76 Blue Mountain Lands, The Blue Mountains, Ontario

79 ADDENDUM 77 ADDENDUM A - Assumptions and Limiting Conditions B Subject Property Images & Documents C Comparable Sales D Commercial Space Calculation E - Appraiser CV 77 Blue Mountain Lands, The Blue Mountains, Ontario

80 ADDENDUM A ASSUMPTIONS AND LIMITING CONDITIONS 78 Blue Mountain Lands, The Blue Mountains, Ontario

81 ADDENDUM A ASSUMPTIONS AND LIMITING CONDITIONS The Report has been made subject to the following assumptions and limiting conditions: This report has been prepared at the request of Mr. Vadim Shub, Skyline Investment Inc. The purpose of this appraisal is to estimate the market value of the Subject Properties. It is not reasonable for any person other than the person or those to whom this report is addressed to rely upon this appraisal without first obtaining written authorization from Mr. Vadim Shub, Skyline International Development Inc and the author of this report. This report has been prepared on the assumption that no other person will rely on it for any other purpose and all liability to all such persons is denied. This report has been prepared at the request of Mr. Vadim Shub, Skyline International Development Inc and for the exclusive (and confidential) use of the recipients as named herein and for the specific purpose and function as stated herein. All copyright is reserved to the author and this report is considered confidential by the author and Mr. Vadim Shub, Skyline Investment Inc. Possession of this report, or a copy thereof, does not carry with it the right to reproduction or publication in any manner, in whole or in part, nor may it be disclosed, quoted from or referred to in any manner, in whole or in part, without the prior written consent and approval of the author as to the purpose, form and content of any such disclosure, quotation or reference. Without limiting the generality of the foregoing, neither all nor any part of the contents of this report shall be disseminated or otherwise conveyed to the public in any manner whatsoever or through any media whatsoever or disclosed, quoted from or referred to in any report, financial statement, prospectus, or offering memorandum of the client, or in any documents filed with any governmental agency without the prior written consent and approval of the author as to the purpose, form and content of such dissemination, disclosure, quotation or reference. The estimated market value of the real property which is appraised in this report pertains to the value of the Fee Simple interest in the real property. The property rights appraised herein exclude mineral rights, if any. The estimate of value contained in this report is founded upon a thorough and diligent examination and analysis of information gathered and obtained from numerous sources. Certain information has been accepted at face value; especially if there was no reason to doubt its accuracy. Other empirical data required interpretive analysis pursuant to the objective of this appraisal. Certain inquiries were outside the scope of this mandate. The Subject Properties has been valued on the basis that title to the real property herein appraised is good and marketable. The author of this report cannot accept responsibility for legal matters, questions of survey, opinions of title, hidden or unapparent conditions of the property, toxic wastes or contaminated materials, soil or sub-soil conditions, environmental, engineering or other technical matters which might render this property more or less valuable than as stated herein. If it came to our attention as the result of our investigation and analysis that certain problems may exist, a cautionary note has been entered in the body of the report. The legal description of the property and the area of the site were obtained from Teranet Geowarehouse and/or MPAC ICI Industrial Report. Further, the plans and sketches contained in this report are included solely to aid the recipient in visualizing the location of the property, the configuration and boundaries of the site and the relative position of the improvements on the said lands. The Subject Properties has been valued on the basis that the real property is free and clear of all value influencing encumbrances, encroachments, restrictions or covenants except as any be noted in this 79 Blue Mountain Lands, The Blue Mountains, Ontario

82 ADDENDUM A report and that there are no pledges, charges, lien or social assessments outstanding against the property other than as stated and described herein. The Subject Properties has been valued on the basis that there are no outstanding liabilities except as expressly noted herein, pursuant to any agreement with a municipal or other government authority, pursuant to any contract or agreement pertaining to the ownership and operation of the real estate or pursuant to any lease or agreement to lease, which may affect the stated value or saleability of The Subject Properties or any portion thereof. The interpretation of leases (if any) or other contractual agreements, pertaining to the operation and ownership of the property, as expressed herein, is solely the opinion of the author and should not be construed as a legal interpretation. The Subject Properties has been valued on the basis that the real property complies in all material respects with any restrictive covenants affecting the site and has been built and is occupied and being operated, in all material respects, in full compliance with all requirements of law, including all zoning, land use classification, building, planning, fire and health by-laws, rules, regulations, orders and codes of all federal, provincial, regional and municipal governmental authorities having jurisdiction with respect thereto. It is recognized there may be work orders or other notices of violation of law outstanding with respect to The Subject Properties and that there may be certain requirements of law preventing occupancy of the real estate as described in this report. However, such possible circumstances have not been accounted for in the appraisal process. Investigations have been undertaken in respect of matters which regulate the use of land. However, no inquiries have been placed with the fire department, the building inspector, the health department or any other government regulatory agency, unless such investigations are expressly represented to have been made in this report. The Subject Properties must comply with such regulations and, if it does not comply, its non-compliance may affect its market value. To be certain of such compliance, further investigations may be necessary. The data and statistical information contained herein were gathered from reliable sources and are believed to be correct. However, these data are not guaranteed for accuracy, even though every attempt has been made to verify the authenticity of this information as much as possible. The estimated market value of The Subject Properties does not necessarily represent the value of the underlying shares, if the asset is so held, as the value of the shares could be affected by other considerations. Further, the estimated market value does not include consideration of any extraordinary market value of the property, unless the effects of such special conditions, and the extent of any special value that may arise there from, have been described and measured in this report. Should title to The Subject Properties presently be held (or changed to a holding) by a partnership, in a joint venture, through a co-tenancy arrangement or by any other form of divisional ownership, the value of any fractional interest associated therewith may be more or less than the percentage of ownership appearing in the contractual agreement pertaining to the structure of such divisional ownership. In the event of syndication, the aggregate value of the limited partnership interests may be greater than the value of the Fee Simple interest in the real property, by reason of the possible contributory value of non-realty interests or benefits such as provision for tax shelter, potential for capital appreciation, special investment privileges, particular occupancy and income guarantees, special financing or extraordinary agreements for management services. Should the author of this report be required to give testimony or appear in court or at any administrative proceeding relating to this appraisal, prior arrangements shall be made therefore, 80 Blue Mountain Lands, The Blue Mountains, Ontario

83 ADDENDUM A including provisions for additional compensation to permit adequate time for preparation and for any appearances which may be required. However, neither this or any other of these contingent or limiting conditions is an attempt to limit the use that might be made of this report should it properly become evidence in a judicial proceeding. In such a case, it is acknowledged that it is the judicial body which will decide the use of this report which best serves the administration of justice. Because market conditions, including economic, social and political factors, change rapidly and, on occasion, without notice or warning, the estimate of market value expressed herein, as of the effective date of this appraisal, cannot necessarily be relied upon as any other date without subsequent advice of the author of this report. The value expressed herein is in Canadian dollars. This report is only valid if it bears the original signature(s) of the author(s). 81 Blue Mountain Lands, The Blue Mountains, Ontario

84 ADDENDUM B SUBJECT PROPERTY IMAGES & DOCUMENTS 82 Blue Mountain Lands, The Blue Mountains, Ontario

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93 ADDENDUM C COMPARABLE SALES 83 Blue Mountain Lands, The Blue Mountains, Ontario

94 Madelaine Dr, Barrie Index: 1229 Land Address Madelaine Dr Municipality Region Location Barrie Simcoe Madelaine Dr and Yonge St PIN Roll No Property Code Description 112 Multi-residential vacant land CVA $1,755,085 Site Area 3.74ac (162,914.40sf) Buildable (sf) Frontage (ft) No of Suites Building (sf) No of Lots Vendor Purchaser Canada Inc Pratt Hansen Group Sale Date Cash Price $5,880,000 Assumed Price $0 VTB $0 Other $0 Chattels $0 Total Price $5,880,000 % Transferred 100% Sale Price $5,880,000 Frontage $/ft? Site Area $/sf $36.09 Site Area $/ac $1,572,193 Bldg Area $/sf? Buildable $/ft? $/ Suite? $ / Lot $30,000 This sale is located in the south east section of Barrie. It is approved for the development of 196 residential units (Townhomes, Stacked Townhomes and Condo Apartments). Planned Development (PUD)

95 85 Sydenham Wells, Barrie Index: 1230 Land Address Municipality Region Location 85 Sydenham Wells Barrie Simcoe Cheltenham Rd and Penetanguishene Rd PIN Roll No Property Code 112 Description CVA Multi-residential vacant land Site Area 4.03ac (175,546.80sf) Buildable (sf) Frontage (ft) No of Suites Building (sf) No of Lots Vendor Purchaser Ontario Inc Fernwood developments (ontario) Sale Date Cash Price $600,000 Assumed Price $3,400,000 VTB $0 Other $0 Chattels $0 Total Price $4,000,000 % Transferred 100% Sale Price $4,000,000 Frontage $/ft? Site Area $/sf $22.79 Site Area $/ac $992,556 Bldg Area $/sf? Buildable $/ft? $/ Suite? $ / Lot $42,553 This sale is an infill lot, south of Georgian Drive and on the west side of Penetanguishene Road. The site plan approves for 94 stacked townhomes in a 3 storey building. Construction begining in 2014 MarshallZehr Group Inc principal: $15,000,000 rate: Tranche 1: $3,400,000 to purchase properties. 8.0% per annum, due 4/18/2014. Tranche 2: $13,750,000 to develop properties. 12.0% per annum, due 12/18/2015. registered: 12/19/2013 due: 01/01/2016 Multi-Family - Townhouse

96 3278 4th Line, Bradford West Gwillimbury Index: 1349 Land Address Municipality Region Location th Line Bradford West Gwillimbury Simcoe PIN Roll No Property Code Description 260 Vacant residential/commercial/ industrial land owned by a non-farmer with a portion being farmed CVA $790 Site Area ac (4,469,256.00sf) Buildable (sf) Frontage (ft) No of Suites Building (sf) No of Lots Vendor Purchaser Sale Date Cash Price Assumed Price Bradford 4th Line Ontario Inc Highcastle Homes Romolo Margarelli $8,250,000 $0 VTB $0 Other Chattels $0 $0 Total Price $8,250,000 % Transferred 100% Sale Price $8,250,000 Frontage $/ft? Site Area $/sf $1.85 Site Area $/ac $80,409 Bldg Area $/sf? Buildable $/ft? $/ Suite? $ / Lot? This sale represents a farm and future development land. It is located just east of Highway 400 and north of the Holland Marsh. This property was purchased together with 3203 Fifth Line (91.1 acres) for a total consideration of $16,500,000 Subdivision-Residential

97 2944 5th Line, Bradford West Gwillimbury Index: 1350 Land Address Municipality Region Location th Line Bradford West Gwillimbury Simcoe PIN Roll No Property Code Description 261 Land owned by a non-farmer improved with a non-farm residence with a portion being farmed CVA $939,000 Site Area ac (4,366,454.40sf) Buildable (sf) Frontage (ft) No of Suites Building (sf) No of Lots Vendor Porta Holdings Ltd Purchaser Sale Date Imperra General Management GB (Bradford) Inc Melrose Investments Inc Cash Price Assumed Price VTB $0 Other Chattels $5,000,000 $5,000,000 $0 $0 Total Price $10,000,000 % Transferred 100% Sale Price $10,000,000 Frontage $/ft? Site Area $/sf $2.29 Site Area $/ac $99,761 Bldg Area $/sf? Buildable $/ft? $/ Suite? $ / Lot? This farm and future development land is located on the north side of 5th Line and adjacent to the Highlands Golf Club and residential development along Brownlee Drive. It is also a short distance south east of the Highway 400 interchange at County Road 88. It was last transferred in December 2010 for $6,600,000 principal: $5,000,000 rate: 5.0% per annum. registered: 08/07/2014 due: on demand Subdivision-Residential

98 343 Town Line, Barrie Index: 1351 Land Address 343 Town Line Municipality Barrie Region Simcoe Location PIN Roll No Property Code 125 Description Residential development land CVA $2,915,000 Site Area 31.01ac (1,350,795.60sf) Buildable (sf) Frontage (ft) No of Suites Building (sf) No of Lots Purchaser Pine View Golf and Country Club Inc Morrison and Payne Summitpines Estates Inc Sale Date Cash Price $3,109,210 Assumed Price $0 VTB $0 Other $0 Chattels $0 Total Price $3,109,210 % Transferred 100% Sale Price $3,109,210 Frontage $/ft? Buildable $/ft? Site Area $/sf $2.30 $/ Suite? Site Area $/ac $100,265 $ / Lot? Bldg Area $/sf? Vendor Sale of Pine View Golf & Country Club - about 31.0 $100,265 For development of a subdivision of detached single family homes. It is currently under construction - Pineview Greens is a new single family home development By Royalpark Homes. Residential (Single-Family)

99 th Sideroad, Bradford West Gwillimbury Index: 1364 Land Address Municipality Region Location th Sideroad Bradford West Gwillimbury Simcoe PIN Roll No Property Code Description 260 Vacant residential/commercial/ industrial land owned by a non-farmer with a portion being farmed CVA $296,000 Site Area 31.09ac (1,354,280.40sf) Buildable (sf) Frontage (ft) No of Suites Building (sf) No of Lots Vendor Purchaser Named Individual(s) Oldton Developments Inc Sale Date Calton Developments Cash Price $2,125,000 Assumed Price $0 VTB $2,125,000 Other $0 Chattels $0 Total Price $4,250,000 % Transferred 100% Sale Price $4,250,000 Frontage $/ft? Site Area $/sf $3.14 Site Area $/ac $136,700 Bldg Area $/sf? Buildable $/ft? $/ Suite? $ / Lot? The site is located across the street from the built-up area of Bradford West Gwillimbury - consisting of new residential development. The farm property is currently leased to a farmer. The purchaser hopes to develop the property (in 1-3 years) for residential use. Named Individual(s) principal: $2,125,000 rate: 4.5% per annum. registered: 04/30/2014 due: 04/30/2019 Subdivision-Residential

100 76,84,90 Ardagh Road, Barrie Index: 2076 Land Address 76,84,90 Ardagh Road Municipality Region Location Barrie Simcoe PIN ,74 Roll No Property Code Description 112 Multi-residential vacant land CVA $732,000 Site Area 1.70ac (74,052.00sf) Buildable (sf) Frontage (ft) No of Suites Building (sf) No of Lots Vendor Purchaser OntarioInc JRSelectHoldingsInc Sale Date Cash Price $950,000 Assumed Price $0 VTB $0 Other $0 Chattels Total Price $950,000 % Transferred 100% Sale Price $950,000 Frontage $/ft $3,058 Site Area $/sf $12.83 Site Area $/ac $558,824 Bldg Area $/sf? Buildable $/ft? $/ Suite? $ / Lot $20,213 Approved for the development of a 3 storey,47unit rental apartment building. Multi-Family - Apartment

101 260 Mountain Road, Collingwood Index: 3085 Land Address Municipality Region Location 260 Mountain Road Collingwood Simcoe PIN Roll No Property Code Description 260 Vacant residential/commercial/ industrial land owned by a non-farmer with a portion being farmed CVA $260,000 Site Area 48.98ac (2,133,568.80sf) Buildable (sf) Frontage (ft) No of Suites Building (sf) No of Lots Vendor Purchaser Ontario Inc Maid Mills Village Inc Sale Date Cash Price $1,500,000 Assumed Price $4,350,000 VTB $0 Other $0 Chattels $0 Total Price $5,850,000 % Transferred 100% Sale Price $5,850,000 Frontage $/ft? Site Area $/sf $2.74 Site Area $/ac $119,437 Bldg Area $/sf? Buildable $/ft? $/ Suite? $ / Lot? This site is located between Mountain Road and Blue Mountain Golf and Country Club. The site has frontage along Mountain Road and 10th Line. It is currently an agricultural field. Draft Approved Land in Collingwood's west end allows for a mix of singles, towns, and walkup units at this time up to 304 units total. Also with a commercial element. Zoned REC EP R3-42 R3 C Ontario Inc principal: $4,350,000 rate: TD prime plus 2.0% per annum. registered: 01/15/2016 due: on demand Residential (Single-Family)

102 Yonge Street, Richmond Hill Index: 3103 Land Address Yonge Street Municipality Richmond Hill Region York Location PIN Roll No Property Code Description CVA Site Area 0.45ac (19,602.00sf) Buildable (sf) Frontage (ft) No of Suites Building (sf) No of Lots Vendor Great Land (Elmwood) Inc Purchaser Metroview Developments (Elmwood) Inc Sale Date Cash Price $2,500,000 Assumed Price $0 VTB $0 Other $0 Chattels $0 Total Price $2,500,000 % Transferred 100% Sale Price $2,500,000 Frontage $/ft? Buildable $/ft? Site Area $/sf $ $/ Suite? Site Area $/ac $5,555,556 $ / Lot $18,797 Bldg Area $/sf? Proposed development of a 15-storey, 133 suite residential condo building (not yet approved). Multi-Family - Apartment

103 ADDENDUM D COMMERCIAL COMPONENT VALUE ADD INCOME APPROACH (LAND RESIDUAL) This is a method of estimating residual value in this case the value of Subject Lands As-Is. Direct and indirect costs and entrepreneurial profit are deducted from an estimate of the anticipated gross sale price of the complete commercial building. The resultant value represents the value of the Subject Lands As Is. In order to estimate the Subject Project As Is value using this method, the following steps are performed: Market Value of Subject Project As Complete the market value of the proposed project as complete is estimated using the Income Approach (Direct Capitalization Methodology); Building Direct and Indirect Costs - the direct and indirect costs for the subject are estimated; Entrepreneurial Profit - a reasonable developer s profit is estimated for the project; and Land Value the net resultant value is calculated, representing the current value of the Subject Land. MARKET VALUE OF SUBJECT PROJECT AS COMPLETE The market value of the subject project as complete is estimated using the Income Approach (Direct Capitalization Methodology). The Income Approach is a method of converting the anticipated economic benefits of owning property into a value through the capitalization process. The principle of anticipation underlies this approach in that investors recognize the relationship between an asset s income and its value. The two most common methods of converting net income into value are the Direct Capitalization Method and Discounted Cash Flow Method. In the Direct Capitalization Method, net operating income is divided by an overall capitalization rate to indicate an opinion of market value. In the Discounted Cash Flow Method, anticipated future cash flows and a reversionary value are discounted to an opinion of net present value at a chosen yield rate (internal rate of return). Purchasers acquiring this type of asset not only look at year one returns, but also consider longer-term strategies. METHODOLOGY The Direct Capitalization Method is considered the best methodology by which to develop the Income Approach in this instance. A typical investor would consider income in place for this type of property as opposed to a more complicated cash flow methodology. REVENUE ANALYSIS In order to determine an appropriate market rent for the Income Pro forma, a review of market lease transactions was conducted. The following tables summarize rental activity for retail space in competing buildings within the Blue Mountain Village Area. 84 Blue Mountain Lands, The Blue Mountains, Ontario

104 ADDENDUM D Current market rents range between $22.00psf and $57.80psf. Commercial space for these lands would be expected to fall well below the rates attained by the boathouse. This space would be somewhat less central and a rental rate between $25psf and $30psf say $27.50psf would appear to be reasonable this rate is between the average rate and a rate well below the maximum of surveyed lease rates for the village area. OPERATING EXPENSES The retail lease will be written on a fully net basis, with the tenant being responsible for all operating costs. GENERAL VACANCY & COLLECTION ALLOWANCE It is our understanding that the village retail space is fully occupied. Based on the assumed term of the lease, the nature of the improvements and marketing time required for space absorption, a stabilized vacancy rate of 2.5% of Potential Gross Income is considered reasonable and selected. No collection loss/bad debt has been factored, as concerns which an investor may have in this regard would most likely be addressed in the selection of the overall yield. 85 Blue Mountain Lands, The Blue Mountains, Ontario

105 ADDENDUM D MANAGEMENT FEE Typically, a management fee is deducted from the Effective Gross Income. This deductible includes the expenses for management. A deduction of 5.0% is considered reasonable and is factored into the analysis. INVESTMENT ANALYSIS As part of our analysis, we reviewed an investment survey published by Altus Insite. Subject to adjustment for geographic location/market, it is our opinion that these cap rates better reflect the asset under analysis as opposed to more local yet less investment grade properties. The rates presented below provide for a stable benchmark rate for the Toronto market to which a reasonable adjustment can be made to account for its secondary market location. This survey indicates that cap rates for single tenant retail properties are in the 5.4% range for Toronto. Factoring in the Subject Property s location, market area and quality of asset, a cap rate of 7.40% (200bps above the above survey rate) appears to be reasonable, given the project and secondary market location. DIRECT CAPITALIZATION METHOD INCOME PRO FORMA The results of the above Revenue and Expense Analysis are summarized in the pro forma presented below. 86 Blue Mountain Lands, The Blue Mountains, Ontario

106 ADDENDUM D Income Pro Forma Twelve monthsforthcoming Total $ PSF Potential Gross Revenue SF Boathouse 15,000 $412,500 $27.50 Total Potential Gross Revenue 15,000 $412,500 $27.50 Vacancy and Collection Loss 2.5% $10,313 $0.69 Effective Gross Revenue $402,188 $26.81 Non Recoverable Operating Expenses Management Expense 5.0% $20,109 $1.34 Total Operating Expenses $20,109 $1.34 Net Operating Income $382,078 $25.47 FINAL ESTIMATE OF VALUE The final estimate of value via the Direct Capitalization Approach is presented in the table below: Therefore, it is our opinion that the current market value of the Subject Property as improved via the Income Approach, as at 30-June-16 is $5,163,218. BUILDING DIRECT AND INDIRECT COSTS The building direct and indirect costs are based upon the Toronto Real Estate Board Rough/Advanced Guide to Construction Costs. Based upon the aforementioned report, a small commercial retail unit is estimated to cost approximately $173psf to construct. Therefore, the cost of construction for a 5,000sf retail building on the Subject Lands is: $173psf x 15,000sf = $2,601,000 ENTREPRENEURIAL PROFIT Direct Capitalization Approach OCR NOI Estimate of Value $psf 6.90% $382,078 $5,537,364 $ % $382,078 $5,343,750 $ % $382,078 $5,163,218 $ % $382,078 $4,994,485 $ % $382,078 $4,836,432 $322 The Developer s Profit is defined to be that profit earned or anticipated to be earned above costs, from the completion of the project. The estimate reflects the development stage of the subject lands and the market conditions at the effective date. Although such an allowance for profit is often difficult to substantiate by direct market evidence, discussion with active market participants tend to indicate a range from 15% to 25% for a reasonable return on the risk associated with developing land. In the subject s case, the lands are fully zoned with municipal services at the street curb and having some existing improvements. The timing and market conditions would suggest a moderate degree of risk in developing the lands and selling the completed project. It is concluded that an appropriate allowance in this instance would be 25.00% of the gross revenues - the midrange of the probable scale for developer or entrepreneurial profit. The entrepreneurial profit is estimated to be 25% x $5,163,218 = $1,290, Blue Mountain Lands, The Blue Mountains, Ontario

107 ADDENDUM D RESIDUAL VALUE Based upon the above analysis the value add component of the commercial land as at 30-June-16 is estimated to be $1,270,000 (Rounded). Residual Land Value Estimate Twelve monthsforthcoming Total Rate Estimated Market Value $5,163,218 $344 psf Gross Floor Area (sf) 15,000 Development Costs Hard and Soft Costs $2,601,000 $173 psf Developer's profit $1,290, % Total Costs $3,891,804 Estimated Residual Land value $1,271, Blue Mountain Lands, The Blue Mountains, Ontario

108 ADDENDUM E APPRAISER CV 89 Blue Mountain Lands, The Blue Mountains, Ontario

109 5859 Yonge Street, Suite 104 Toronto, ON M2M 3V6 Canada D Ext. 103 Toivo Heinsaar BA, AACI, P.App., MRICS Partner Education and Qualifications Bachelor of Arts, Honors (Economics Specialist) University of Toronto Financial Analysis and Investment Management Certificate University of Toronto Accredited Appraiser Canadian Institute (AACI) Appraisal Institute of Canada Member of the Royal Institution of Chartered Surveyors (MRICS) Royal Institution of Chartered Surveyors Broker Ontario Real Estate Association Area of Expertise Real Estate Valuation and Advisory Professional Experience Senior Vice President, Valuation & Advisory Avison Young Director, Real Estate Valuation Deloitte & Touché LLP Vice-President, Valuation & Advisory Services Cushman & Wakefield Inc. Associate Vice-President Colliers International Realty Advisors Senior Appraiser, Forensic & Litigation Support Services American Appraisal Canada Inc. Business Background Toivo brings over 20 years of experience in real estate valuation and advisory services. His experience ranges from forensic and litigation support services to financial reporting for large investment grade assets for both single asset and large geographically dispersed portfolios. His clients include some of the nation s leading financial and public institutions, real estate developers and investors. His areas of experience include: Single asset valuation Portfolio valuation Highest and best use analysis Appraisal review Dispute analysis and litigation support Transaction support

110 5859 Yonge Street, Suite 104 Toronto, ON M2M 3V6 Canada D Ext. 103 Professional Accomplishments Financial Audit Support Valuation review and advisory for many of Canada s largest real estate investment funds and REITS including Brookfield, CPPIB and GWL. Single Asset & Portfolio Valuation Over $2 Billion in value appraised annually across Canada for companies such as: Bentall Kennedy (Canada) LP;Caisse de dépôt et placement du Québec; Standard Life Assurance Company of Canada; Redcliff Realty Advisors; Sears Canada; InterRent REIT; Timbercreek Asset Management Inc.; Manulife Financial; EuroHypo AG; Sun Life Assurance Company of Canada; Strathallen Capital Corporation; Ontario Realty Corporation; PWGSC; Metrolinx; Blackwood Partners; Citigroup; Build Toronto and KingSett Capital. Office Provided valuation services for a large range of office type properties across Canada. Some notable assignments include: Nortel Research Office Campus, Ottawa; Steeles Technology Campus, Toronto; Canada Square, Toronto; University Centre, Toronto; Joseph Howe Centre, Halifax; 121 King Street West, Toronto; and York Mills Centre, Toronto, The Atria, Toronto. Retail In addition to providing valuations for smaller scale properties, some larger assignments included: Gerrard Square, Toronto, Sheppard Centre, Toronto; Lloyd Jackson Square, Hamilton; Rainbow Centre, Sudbury; and Peterborough Square, Peterborough. Special Purpose Of the many special purpose use valuations conducted, some notable assignments include: Rogers Centre, Toronto; Leasehold valuation of Priszm Income Fund, Canada; Twin Pad Arena, Kitchener; Hearn Generating Plant, Toronto; Toronto City Centre Airport, Toronto (Hangars & Fuel Farm); and Sudbury Community Arena, Sudbury. Land Development Valuation assignments for land have ranged by geography, size and use. Some assignments include: 4,000ac of development land across Ontario; Bay Adelaide Centre (151,775sf); 16 York Street, Toronto (122,504sf); 1 Bloor St E, Toronto (871,876sf buildable); North Oak Park Development, Brantford (336ac); Port Lands, Toronto (18.75ac); Laid Road, Guelph (116.16ac); 45 Bay Street, Toronto (1,468,843sf buildable); and Oakville Land Assembly, Oakville (1,160ac). Multi Residential Multi residential assignments are mostly at the portfolio level such as InterRent Reit Portfolio, Ontario and Timbercreek. Single asset valuations include multiple locations across Ontario. Industrial Industrial valuations have ranged from large business parks in Toronto to cold storage facilities in smaller towns. Some larger assignments include: 256 Rutherford Road South, Brampton (Cross Dock 101,449sf); Matheson Business Park, Mississauga (449,533sf); Oakville Self Storage (102,590sf); Food Processing Plant, Oakville (366,000sf); ING Summit Industrial Fund, Canada; Norelco, Toronto (1,135,017sf); and Sears, Distribution Facility, Belleville (1,804,896sf). Public Presentations Toivo Heinsaar has spoken on a range of valuation topics pertaining to commercial, industrial and investment properties. Some of his seminars for real estate organizations include the following:

111 5859 Yonge Street, Suite 104 Toronto, ON M2M 3V6 Canada D Ext. 103 Land Sales Data and DMS Design (2004) - A two-part seminar offering insight into the design of a Database Management System (DMS) along with a review of the relevant land appraisal methodology. The seminar was co-authored with Paul Bender, AACI and sponsored by the Ontario Association Appraisal Institute of Canada. Issues Arising from Component Accounting and Property Plant and Equipment (IAS 16) (2009) - Part of a two-day seminar provided by InfoNex titled IFRS for Real Estate Understanding Critical Issues Affecting Financial Reporting in the Real Estate Industry. This included the discussion of the implications of component accounting for non-investment property or investment property where the cost model has been selected. How to Value in a Recessionary Market an Appraiser's Perspective (2009) - Part of the 43rd Annual Canadian Property Tax Association National Workshop. This included the discussion on challenges and dangers of Point in Time valuation and how one values in such a market. Annual Toronto Office Market Overview ( ) for Caisse de dépôt et placement du Québec - A office market overview provided to the Montreal Head Office Real Estate Group.