First American Scientific Corp. (fka FASC)

[TRCPA]

Sam.......you are reading it correctly. UZP Ltd. is getting the funds now, to be repaid over a period of two years and four months with no interest.

Attach an interest rate to the $450K. Start running the interest at August 9th (time of the loan). Then run it from August, 2004 to December, 2006. They are receiving their UZP Ltd. investment for fronting the money and forgoing that interest, in essence.

Did they (Thelon Ventures) get a good deal? I would have to say...you betcha.

Does it keep the project moving forward? I would have to say.....you betcha.

How does it affect us as FASC shareholders?

The project continues moving forward with $450K of fresh funds, and we lose 8% of UZP Ltd. I would say, overall, a minor net-negative for us as shareholders.

TR

P.S. Did you also notice that this is just phase I of UZP Ltd, per Zeo-Tech? And that CZC has an agreement with HAL to provide zeolite to them all over the world, and not just in Western Canada?