First American Scientific Corp. (fka FASC)

[Jamesfwh]

M 1. LEGAL PROCEEDINGS.
We are involved in lawsuits involving prior management and individuals associated with them.
On April 21, 2009, Calvin Kantonen filed a statement of claim with the Supreme Court of British Columbia, Vancouver Registry No. S092943
alleging that the defendants: our company and our transfer agent, Computershare Trust Company of Canada, have improperly refused to remove
the legend on 1,500,000 of our common shares held by Mr. Kantonen. On May 15, 2009, the defendants filed a statement of defence whereby we
denied the allegations of Mr. Kantonen and alleged that the shares were not validly issued. No further proceedings have been undertaken in this
lawsuit. The Company plans to vigorously defend this claim and denies the allegations of Mr. Kantonen. We anticipate that even if Mr.
Kantonen’s lawsuit is successful, it should not have a material adverse effect on our financial condition, results of operations, or cash flows.