Sonic Drill Systems Inc.

As previously advised, MNP Ltd. was appointed as Receiver over all of the property and undertakings of the Company on November 19, 2013. Subsequently, MNP Ltd. was appointed as Receiver over all of the property and undertakings of the Company by order of the Supreme Court of British Columbia on March 18, 2014. A copy of the Court order can be found below.

The Company was assigned into bankruptcy on March 21, 2014, and MNP Ltd. was appointed as Trustee of the estate of the bankrupt, subject to affirmation of the Trustee's appointment or substitution of another Trustee by the creditors.

Based on our initial evaluation of the assets and the amount of secured claims, we do not expect there to be any funds available from the bankrupt estate for the claims of unsecured creditors.

If you are an employee who filed a proof of claim in the Receivership proceeding in relation to your claim under the Wage Earner Protection Program, you are not required to complete a new proof of claim form at this time.

A Proof of Claim form can be found in the attached Notice of Bankruptcy and First Meeting of Creditors below. These documents are also being mailed directly to each creditor listed on the Statement of Affairs.