Hedge Fund Selection Process 2005 Canadian Annual Derivatives Conference Gary Ostoich President, Salida Capital Corp. August 19, 2005

Disclaimer 1 Salida Capital Corp. is registered as an investment counsel portfolio manager and limited market dealer with the Ontario Securities Commission. Salida provides investment advisory services through private investment vehicles and separately managed accounts. The material presented herein is for informational purposes only and should not be construed as providing investment advice nor an offer to open a managed account nor an offer to sell, or a solicitation of an offer to buy, interests in any products (“Fund”) or any of the shares, bonds or other ownership interests issued by the Funds. Alternative investments can involve significant risks and the value of a Fund may go down as well as up. Movements in exchange rates between currencies may affect the value of a Fund. Past performance is not indicative of future results. The registrations described above in no way imply that the Ontario Securities Commission or any other regulatory body have endorsed any of the services discussed herein. The information in this presentation relating to any Funds is qualified in its entirety by the relevant Private Placement Memorandums (each a “Memorandum”) of Funds managed or advised by Salida. There are risks inherent in privately-offered investment vehicles. Each Memorandum contains important information concerning risk factors, including a more complete description of the risks, and other material aspects of the Fund’s investment program and should be read carefully before any decision to invest is made. Any offer for a Fund can only be made by a Memorandum and only in jurisdictions in which such an offer would be lawful and exempt from registration. Securities trading is speculative and involves substantial risk of loss. There can be no assurance that Salida will achieve profits or avoid incurring substantial losses. Prospective investors should particularly note that the past performance of Salida’s or the Fund’s accounts is not indicative of future performance.

Salida Capital Corp is a Toronto based hedge fund advisor offering alternative investment expertise to institutional clients and high net worth individuals – –15 person firm which includes 8 investment professionals – –committees established to deal with, among other things, compliance, risk management, and investment decisions – –substantial investment in all funds by all levels of management Multi strategy (includes long/short/merger/convert/macro systematic) Five offshore funds along with one recently launched Canadian fund 2 About Salida

2 Investor Process Wide range of approaches depending on investor Initial contact Follow up onsite meetings Ongoing monitoring/meetings

2 Some Re-Occurring Themes for Managers Back Office Structure Side Letters

2 Back Office Integrity of pricing process Offshore administration Governance

2 Domicile of fund Onshore/offshore: limited partnership/trust/corporation Feeder funds Structure

2 Reasons for their growth Broad range of applications Potential enforceability/liability issues Side Letters

Questions?