Opportunity in Saskatchewan …

  Opportunity in
Saskatchewan                                                                      Philom Bios
Golden Opportunities Fund is proud to be one of the largest venture capital investors in Saskatchewan. To keep our shareholders and
financial advisors informed about the investment activities of the Fund, we will periodically highlight our strategic investee companies in a
feature called Opportunity in Saskatchewan.


Philom Bios was                                        An inoculant is a beneficial, living micro-
                                                       organism that, when coupled with other crop
                                                                                                               needs of individual customers by delivering
                                                                                                               high-value inoculants."
                                                       inputs chosen by a farmer, helps provide
incorporated in 1980 to help                           phosphate and nitrogen fertility in forms more          The success of the Philom Bios model is best
                                                       readily used by that crop or in greater quantity        judged by the facts. From 1997 to 2003, the
farmers improve crop                                   than would otherwise be the case. Licensed-in
                                                       technologies and products complement
                                                                                                               company's revenues increased 170% to reach
                                                                                                               $9.5 million. Of 18 product names currently on
productivity and profitability                         this purpose.                                           the Western Canadian market, Philom Bios
                                                                                                               products hold the top three positions in terms
through the use of microbial                           Since its establishment, Philom Bios has
                                                       consistently invested in research programs to
                                                                                                               of awareness or brand strength, and they have
                                                                                                               the highest market share of inoculated acres
                                                       develop novel inoculants that increase farmer           over competitors.
input products ­ inoculants.                           profitability. These efforts have resulted in the
                                                       introduction of several new products. In 1989,          Expanding into Choice Markets
Today it is Western Canada's                           the Company introduced N-Prove, a superior
                                                                                                               Philom Bios is based in Saskatoon,
                                                       line of nitrogen inoculants for pulse crops.
leading inoculant producer                             JumpStart, the world's first commercial
                                                       phosphate inoculant, was introduced in 1991
                                                                                                               Saskatchewan. R & D, marketing and corporate
                                                                                                               functions are carried out at Innovation Place,
                                                                                                               Canada's leading research park. The company
and the only Canadian-                                 and is now available for all major crops.
                                                                                                               also maintains 75,000 square feet of
                                                                                                               manufacturing facilities in the city.
owned inoculant company                                Another major milestone was achieved in 1997
                                                       with the introduction of TagTeam, the world's
                                                       first combination phosphate and nitrogen                The business is driven by a multidisciplinary staff
serving prairie farmers.                               inoculant for all major pulse crops. Recently, the      of 57 microbiologists, agronomists, engineers
                                                                                                               and marketing, manufacturing and business
                                                       company secured the Canadian marketing rights
A 3 TO 1 NET RETURN ON INVESTMENT ­ that's                                                                     professionals. Sustained growth is the focus of
                                                       for Agrotain(R), a urease inhibitor compound
the average profit benefit realized by farmers                                                                 the dynamic executive and management team.
                                                       that increases the fertility efficiency of urea
using Philom Bios' high-value inoculants to
                                                       nitrogen. The focus of the Philom Bios product
increase the fertility efficiency of their crops. In                                                           The company is investing more than $1 million
                                                       portfolio is increased fertility efficiency combined
2003, use of Philom Bios inoculants led to an                                                                  annually in new and improved products and
                                                       with a positive environmental footprint.
estimated $25 million increase in profits for farm                                                             formulations, while continuing to expand its
customers.                                                                                                     marketplace. Its entry into North Dakota in
                                                       Growing Awareness
                                                                                                               2001 provides a solid base for ongoing
Delivering High-Value Agronomic                        & Brand Strength                                        expansion in the U.S. northern Prairie states.
Productivity Tools                                     In addition to ongoing investment in research
                                                                                                               The Philom Bios growth strategy is based on three
                                                       and manufacturing systems, Philom Bios places
Faced with increasing competitive pressures,                                                                   commitments:
                                                       high priority on a marketing model that delivers
farmers are demanding agronomic productivity           consistent value to the customer. Throughout its        1. Deliver more value to existing customers.
tools. Philom Bios delivers these tools. It is         history, the company has maintained productive
committed to helping farmers around the world          relationships with its distributor, retailer and        2. Invest prudently in technologies and growth
produce food, feed and fiber in ever-more              farmer customers. It holds to the theory that the       markets that offer the opportunity to serve new
efficient and sustainable ways. The micro-             best technology in the world is of little value         customers.
organisms that comprise the active ingredients of      unless it can be placed in the customers' hands in
Philom Bios proprietary technologies, called                                                                   3. Manage internal operations with a rigor and
                                                       an easy-to-use form and at a price that creates
inoculants, are derived from the soil and                                                                      discipline that translates the value created for
                                                       value. This is a direct reflection of the company's
naturally occurring.                                                                                           customers into lasting value for shareholders.
                                                       statement of purpose, namely, "to serve the


  Golden Opportunities Fund Inc. is Saskatchewan's First and Largest Provincial   Golden Opportunities fund is the largest single shareholder in Philom Bios and is
  Labour-Sponsored Venture Capital Corporation. To date, the Fund has raised      proud to be a part of the success that this company has accomplished. For more
  $45 million for investment in Saskatchewan growth companies. Approximately      information on Golden Opportunities Fund's investment portfolio, please visit our
  8,000 Saskatchewan residents have become shareholders in Golden Opportunities   website at www.goldenopportunities.ca.
  Fund and have taken advantage of 35% tax credits and 100% RRSP eligibility.

                                                                                                                                                          April 2004