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Notes to Financial Statements

Year ended December 31, 2009

(Tabular amounts in Thousands of Dollars)

3. Inter-fund balance and transactions:

The inter-fund balance receivable/payable bears no interest and is not governed by terms of repayment. During the year, $169,000 (2008 - $125,000) of NextGen Biofuels Fund operating expenses and allocated staff costs were incurred by the SD Tech Fund.

4. Investments:

2009 2008 Market Market

SD Tech Fund Value Cost Value Cost

Money market funds $ 15,958 $ 15,959 $ 18,763 $ 18,752 Fixed income securities 422,707 412,991 453,002 445,575

$ 438,665 $ 428,950 $ 471,765 $ 464,327

2009 2008 Market Market

NextGen Biofuels Fund Value Cost Value Cost

Money market funds $ 36,615 $ 36,618 $ 50,021 $ 50,015 Fixed income securities 20,168 20,186 –   –  

$ 56,783 $ 56,804 $ 50,021 $ 50,015

(a) Investment risk:

Investment in financial instruments renders the Foundation subject to investment risk. This risk arises from changes in interest rates if investment instruments are withdrawn prior to maturity or should market interest rates increase significantly over those of the investments of the Foundation. The Foundation invests in money market funds and fixed income securities, which management considers being low risk.

(b) Concentration risk:

Concentration risk exists when a significant portion of the portfolio is invested in securities with similar characteristics or subject to similar economic, political or other conditions. Management believes that the diversification of the investments in money market funds and fixed income securities described above does not represent excessive risk.

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