2015-01-21_GENERAL DOCUMENTS - X201123201 (2)

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-10- OVERVIEW OF THE SECURITY GRANTED IN RELATION TO THE SECURED NOTES 25. As security for the payment and performance by the Applicants of obligations under the Secured Notes, the Applicants granted security interests in favour of the Trustee (in its capacities as trustee for each of the 2011 Notes and the 2013 Notes) over substantially all of their real and personal property' by way of certain security documents (the "Security Documents ") which were executed in connection with the Secured Notes. 26. The Monitor is advised by the CRO that Cline holds personal and/or real property in Ontario (Canada), British Columbia (Canada) and Colorado (U.S.). Accordingly, the Monitor engaged counsel ( "Review Counsel ") in the jurisdictions in which the Applicants hold personal and /or real property for the purpose of providing opinions (the "Opinions ") with respect to the security interests granted in favour of the Trustee by way of the Security Documents. 27. The Opinions are substantially complete. The Monitor has received verbal confirmation from Review Counsel that, to date, Review Counsel has identified no issues arising subsequent to the original grant and perfection of the security interests granted in favour of the Trustee by way of the Security Documents that would suggest an impairment thereof. Such confirmation is subject to (i) certain assumptions and qualifications and (ii) certain issues relating to the leases and assets, but not the perfection of security thereon, which were identified at the time the security was originally taken and perfected. The Monitor will provide an update to this Honourable Court with regards to the Opinions in a subsequent report. ' The Monitor is advised by the CRO that the Trustee has discharged its security interest in the share capital of Iron Ore Corporation Madagascar S.A.R.L. currently owned by Cline to facilitate a sale thereof by Cline.