June 16, 1998

WITHOUT PREJUDICE

Mr. Peter Jervis
Lerner & Associates
Barristers & Solicitors
2400 -130 Adelaide St. West
Box 95, Continental Bank of Canada Building Toronto, ON M5H 3P5

Dear Mr. Jervis:

Re: Friends of the Lubicon ats Daishowa Inc.

This will confirm the good news you have no doubt received by now, via your client; that the Daishowa boycott has been officially terminated at the request of the Lubicon Cree Nation. The Lubicon Nation is satisfied that the written commitment given by Daishowa to refrain from cutting timber on, or buying timber cut from, Lubicon traditional territory answers the objectives of the boycott.

My clients have accordingly instructed me to advise that their involvement in boycott activities concerning Daishowa has ceased and will not recommence so long as Daishowa continues to abide by its written commitment.

In these circumstances, it would appear that appeal proceedings are moot. I would appreciate having your views on that point. We should also discuss costs and determine whether or not an application to Justice MacPherson will be required. I am preparing a Bill of Costs on the assumption that quantum will be the only issue. If you intend to raise any issues as to entitlement, please let me know.

Yours very truly,