November 17, 1995

AIT Corporation ( AIV on the TSE) Nepean,ON (613) 226-7800 operates in three international business areas : Identification and Security Systems; Communications, Simulation and Recording Systems; and Business Risk Management. Revenues and earnings growth has been impressive. Revenues for the year just ended in September were most likely $45 million, up from last year's $34 million, while net earnings may have been $5.7 million, or $0.90/sh up from $4.0 million, or $0.64/sh. The stock at $13.50 offers near term appreciation potential based on the continuing growth trend to profits.

Chai-Na-Ta Corp ( CC on the TSE and CCCF on NASDAQ) Langley, BC (604) 533-8883, a leader in the cultivation of ginseng root and a marketer of ginseng value-added products has retained San Francisco-based Sutro & Co to provide the company with investment banking service and advice. CC has also entered into a strategic alliance with Taiwan-based President Enterprises Corp, a large food processor and distributor. The stock at $2.60 shows long term promise.

Geographics Inc (GGI on the TSE and GGIT on US OTC-BB)Blaine, WA (360)332-6711 is a manufacturer of lettering, signage, paper and graphic art products. Its new line of photocopier and stationary paper called Geopaper is selling well. Largest customers are Office Depot, Office Max and Staples. Product is being tested at Wal-Mart. Company is expanding to the UK. Stock at $6.75 has had a good run, up from $0.80, but is still attractive over the longer term.

Hartco Enterprises Inc (HTC on TSE and ME) Montreal, QC (514) 354-3810, discussed in this letter on August 28/95, produced second quarter results below expectations. Consequently, the shares trading at $8.75 offer limited upside potential, at least over the near term.

Newcourt Credit Group Inc (NCT on TSE, ME) Toronto, ON (416)981-9500 is the third largest North American non-bank financial services company, with $3.5 billion in owned and managed assets. With 11 offices in Canada and 12 in the US, NCT specializes in financing equipment and capital leases. Earnings in 1995 and 1996 could attain $1.45/sh and $1.70, compared with $1.20 in 1994. While the shares at $19.25 trade at their highest level, a target price of $25 over the next 6 months is realistic.

Royal Plastics Group Ltd (RYG on TSE, ME) Weston, ON (416)749-5131, discussed in the DDIN letter of October 15, announced the acquisition of US based Novo Industries, the second largest manufacturer of PVC vertical blinds in North America. 1996 earnings of $1.00/sh and $1.35 for 1997 would compare favorably with $0.75 in 1995 and a stock price of $22 over the next 6 months, compared to a current $17.75, is feasible.

Zoom Telephonics Inc (ZOOM on NASDAQ) Boston,MA (617) 423-1072 a producer of modems and fax modems announced at the Comdex trade show in Las Vegas this week that it has begun shipping two new products : 1) Internet Complete fax and data software, with free Internet connect time, and, 2) Com Star line of faxmodems for IBM PC-compatible computers, providing voice mail. Stock at $17 has not followed US Robotics meteoric rise, yet the co. is doing well with sales this year likely to be $80 million, up from $68 million in 1994, and with earnings possibly $1.00/sh.

In the junior gold exploration area, Birim Goldfields Inc ( BIRM on CDN-OTC, current price $0.80) Montreal, QC (514) 393-8611 has reported strong gold values in their joint venture program with Hemlo Gold Mines Inc on the Ashanti Goldbelt in Ghana. Franc-Or Resources Corporation ( FOR on TSE, current price $0.50 ) Montreal,QC (514) 861-5323 has come up with a second gold discovery in French Guiana. Procoloro Resources Inc (PCH on ME, current price $1.54 ) Val D'Or, QC (819) 738-5435 has acquired a very promising gold prospect in Colombia, South America, in proximity to their other holdings. While PCH expects to bring into production modest-sized ore bodies, this property has the potential to be of significant size. Meanwhile, drill hole results from an established site are expected in the first week of December.