March 9, 2001

To Whom It May Concern:

RE: DURACOOL LIMITED

We at Phoenix Group are pleased to include Duracool Limited as one of our valued clients. The writer was responsible for placing the original insurance coverage with CGU and we are very pleased that Duracool has appointed our firm as their broker of record.

Prior to placing the original insurance, we reviewed the development and performance information along with the material safety data sheets for the Duracool product line. We were impressed with the favorable characteristics of the product in terms of performance, reliability and safety. Duracool's utilization of mercaptan as an odourant in their products was a major factor in confirming product safety and subsequent insurability. Mercaptan is the universally recognized stenching agent for all liquefied petroleum gases so any leak, no matter how minor, is immediately noticed.

The product cylinders and cans exceed all Transport Canada and U.S. Department Of Transport specifications and we are also comfortable with the method by which they are shipped to distributors. The mixing facility located in East Edmonton was new in 1997 and remains, after four years of operation, in "as new" condition.

The insurer, CGU Insurance, has continuously provided Duracool's insurance coverage since the company first commenced operations and we are pleased, but not surprised, that as of the date of this letter, there has been no claims made under the policy nor are we aware of any incidents which may give rise to a claim at some time in the future. We attach a letter confirming the claims free status from the underwriter.

We trust this information will help you reach an informed conclusion regarding Duracool's product.

Best regards,
PHOENIX GROUP EDMONTON INC.

Kevan Letourneau, FCIP, CRM
Account Executive