The Company has entered into collaborative research and development agreements with the National Research Council, Canada ("NRC") and the Alberta Research Council ("ARC") for the engineering, processing and production of bast fibers including hemp and flax. To date, approximately CDN$1.9 million has been invested in the Company's CRAiLAR® technology with an additional CDN$2.5 million in expenditures directed toward ongoing R&D.

The NRC is a Government of Canada research and development organization with over 25 technology centers employing over 4,000 people and an annual budget of more than CDN$800 million. With a 90-year history, the NRC's mandate is to provide substantial resources to help Canada become one of the world's top five R&D performers by 2010. The NRC supports the growth of Canadian industry through collaboration with domestic and foreign universities, companies and public and private sector organizations in the areas of health, climate change, the environment, and clean energy. www.nrc-cnrc.gc.ca

The ARC is a provincial research organization established in 1921 to provide contract research and development services to business and government. With an annual budget of over CDN$100 million, the ARC operates five research facilities employing over 500 people throughout Alberta. The BioProducts division has established expertise in applied plant biotechnology and genomics for the development of commercially viable alternatives to petroleum-based products. www.arc.ab.ca