I2BF subscribed for 10,792,632 Nesscap common shares for gross proceeds of US$4,000,000 and Arbat Capital subscribed for 12,141,710 Nesscap common shares for gross proceeds of US$4,500,000 (based on a USD-CAD exchange rate of 1.0253).

As a result, I2BF now controls 55,040,864 common shares (approximately 24.64% of the issued and outstanding common shares after the private placement). If I2BF was to convert the convertible promissory note of Nesscap held by it, its combined control with its common shares would represent a total of 63,449,843 common shares, or approximately 27.37% of such shares outstanding after the private placement on a partially-diluted basis, assuming only the conversion of the notes controlled by I2BF. I2BF will continue to hold its position through I2BF Energy Ltd., formerly Vardimco Enterprises Ltd.

As a result of the subscription described above by its affiliate I Two BF Arbat Technology Fund and purchases on the open market, Arbat Capital now controls 18,501,546 Common Shares (approximately 8.28% of the issued and outstanding common shares after the private placement). If Arbat Capital was to convert the convertible promissory note of Nesscap held by it, its combined control with its common shares would represent a total of 25,336,879 common shares, or approximately 11% of such shares outstanding after the private placement on a partially-diluted basis, assuming only the conversion of the notes controlled by Arbat Capital.

The common shares issued in connection with the private placement will have a hold period in Canada until 25 November 2012. The acquisition of common shares by I2BF and Arbat Capital was made for investment purposes and each of I2BF and Arbat Capital could increase or decrease their investment in Nesscap depending on market conditions or any other relevant factor.