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OSLER GOLF COURSE AND HOUSING DEVELOPMENT PROJECT
BUSINESS PLAN
January, 2003

Osler Golf Course
Box 70 Osler, SK

(306) 239-4679
golfcourse9@canada.com

Contact: Bill Dyck

[EXECUTIVE SUMMARY] [BUSINESS OVERVIEW] [MARKET ANALYSIS - Customer Profile / Market Penetration] [REGULATORY]
[MARKETING PLAN - Marketing Strategy Overview / Promotion] [MANAGEMENT - Current Management / Additional Management / Ownership]

EXECUTIVE SUMMARY

The Osler Golf Course will be a privately held corporation with majority ownership held by William and Kathleen Dyck, the present owners of the property. The balance of ownership will be held by investors who have the foresight to see the tremendous opportunity offered here-in and are willing to invest and possibly capable of taking an active role in the operations of this company when the opportunity arises. Initial anticipated rate of return for investors will be in the range of plus 20 per-cent per annum and increasing upwards annually.

The 9 hole Osler Golf Course will be unique in that it will be the only golf course in or around the city of Saskatoon that will have the capabilities of establishing a housing and condominium development within the confines of the presently owned land base.
Listed below are some of the competitive advantages the golf course has going for it and why these features will show an investor a high return on their investment:

· Located next door to Osler, which according to the 2001 Canadian Census is the fastest growing town in Saskatchewan.
· Located on mostly divided highway 15 minutes from Saskatoon, the largest city in the province.
· Nearest two 9 hole courses, Rosthern and Warman are averaging 30,000 rounds of golf per year and with a break even analysis on this course of 12,000 rounds, the potential for investor return is tremendous.
· Awe inspiring natural terrain and rolling topography along with abundant wildlife will make this a memorable destination course for many golf enthusiasts.
· Excellent opportunity for housing development next door as existing land is already owned by entrepreneur. Also the town of Osler will be seeking additional land base for housing within a short time span.
· Three years of study into site analysis, design, budgeting and permitting issues have already been dealt with.

To date the equivalence of $250,000 has been contributed towards the completion of the engineering and design, major earthmoving and rough shaping of the greens and tees. Completion costs are estimated in the range of $625,000. Securities offered to investors can be in the form of preferred or common shares. Opportunities for exiting this project will also be available once a complete financing strategy is established.

Once the project is completed the value of the golf course along with the proposed clubhouse should be in the range of $1,000,000.

BUSINESS OVERVIEW

The Osler Golf Course intends to be a locally owned and operated business ready to meet the needs of an ever-increasing boom in the popularity of golf. We wish to meet the needs of the new kinds of golfer; the women, young adults and children as well as the so-called greying population.

The design of the course has taken this into account. It will be an easy to walk course with some challenging holes. We intend to have several tee-off boxes on some holes that will also challenge the most intimidating golfer. We wish to build and maintain a truly affordable golf course.

Like the economy, golf has enjoyed tremendous growth in recent years. The National Golf Foundation states its research shows we need to build one golf course a day for the next eleven years to meet the demand of the expected growth of golf in this country. More people than ever are taking up the game and shelling out more money than ever before to play it. Golfers all over the country are paying $20, $30, $40, and more to play a round of golf. At least they are now, in an economy that has flourished.

*(1) Saskatchewan is golf crazy, according to Tourism Saskatchewan. A recent study by the National Golf Foundation showed that one-quarter of the population, 12 years and older, played five or more rounds of golf a year, the highest percentages in North America.

There are many courses across the country that offer golf at a very affordable price. Although they do not make the cover of any particular magazine, and they often have playing conditions that are far from perfect, they do offer millions of golfers a place to play and enjoy the game at a reasonable cost. What we are trying to do here is to build a truly affordable course that is easy to maintain and at the same time provide enjoyment to the majority of golfers in this particular area.

MARKET ANALYSIS

Customer Profile

Our targeted customer will be based mainly from the local populated area. As this will be a new course built upon the assumption of affordable golf, our customer draw in general will be based upon a targeted 100-kilometer radius.

We want to target as stated earlier the new generation of golfer. These are the people with a share of disposable income that is available for recreational activities.

The location of this golf course is along one of the busiest stretches of summer highway traffic in Saskatchewan. Highway #11 is the tourist route to the north exposing us not only to the local tourist travel but as well to tourists from all over the North American continent. We are also located within 15 miles of Saskatoon, the largest city in the province, with a population of over 200,000 people.

Market Penetration

There are in the immediate area, not including the city of Saskatoon only three other 9 hole golf courses. Martensville, Warman and Rosthern Valley Regional Park. Of these, the Martensville course, which only opened in 2001, is a very short par 3 facility.

The Rosthern Regional Park is a very scenic, well-established course known well throughout the province for its beautiful picturesque layout as well as its meticulously maintained greens. Average rounds per year are in the range of 30,000. Bookings are normally recommended. This course is located 16 miles north of the proposed Osler course along Highway 11. This course is in the midst of expanding to 18 holes.

The Warman golf course has grown from its initial inception in 1984 to one, if not the most used 9-hole facility in the province. Bookings are almost always recommended. It is a very simple, flat layout design with no bunker play and very few water hazards. It has averaged over the last four years over 32,000 rounds of golf per year. Although by no means a challenging course and with time of play exceeding on weekends of up to and over 3 hours, the necessity of another local course has been talked about many times while waiting between holes. Tournament play is also of high usage for this course with at times more than 3 or 4 events booked per weekend. The reason for the high usage is its proximity to the city of Saskatoon. The proposed Osler course is only 4 more miles north down the divided highway.

With the above mentioned data it can be seen that this proposed course should be able to achieve the sustainable numbers of rounds to make this a profitable golf course within its first full year of operation.

REGULATORY

As this facility is located within the boundaries of the R.M of Corman Park, this property will have to be rezoned to recreational use. I am at the present time making application to the municipality to have this parcel of land rezoned for recreational use.

*(2) I have also informed all my immediate neighbours about my intentions and they have no concerns about this development, in fact they have signed an agreement in principle welcoming this venture to the area. *(3) I have also received a letter of support from the council of the Town of Osler, *(4) which according to the latest Statistics Canada figures is the fastest growing town in Saskatchewan, welcoming this facility and any economic spin-offs this golf course will generate.

The prestige factor of an outstanding course translates directly into higher land values for the surrounding properties.

MARKETING PLAN

Marketing Strategy Overview

Our marketing strategy has been to perform as much of the land base work as possible. This has included engineering and design, clearing bush, grubbing, rock removal, major earthmoving and rough shaping of the fairways and greens. Indications to date suggest that approximately $250,000 in engineering, design and earthmoving have been performed to date.

At the same time all pertinent quotations for completion of this course been finalized and included in this business plan.

Promotion

As this will be a new facility, promotional activity will be needed to introduce the course to the general public. Immediately upon establishing a firm opening date local radio advertising will be one of the key target areas. Also to be used will be the three local newspapers. As with any new golf facility the anticipation to try a new course and its anticipated opening will be well known locally throughout the area by word of mouth. Immediately upon opening, special promotional packages will be presented to course users. A small budget will be prepared for this purpose.

MANAGEMENT

Current Management

Bill Dyck
Owner/Operator/Manager

Bill has a varied background, which enhances his ability to be able to construct and manage a 9-hole golf course. His previous technical training, which includes a 2 year certificate in Mechanical Engineering Technology, gives him the ability to understand and maintain the operation of any mechanical equipment. His diverse farming background, which included operating and maintaining a central irrigation system for 8 years validates his ability to understand the basics of golf course irrigation.

His meticulously maintained 5-acre yard site demonstrates his ability to understand the basics of golf course grass and tree maintenance. His well-maintained yard site over the last 8 years has had many favorable comments from many local residents. As well as owning a previous business in the past, and being directly associated in sales, Bill has the ability to understand and negotiate with business and governmental agencies as required.

Kim Dyck
Owner/Clubhouse Co-ordinator

Kim's expertise comes in overall yard maintenance, flowering arrangements and shrubs as well as a proven green thumb ability in general yard and garden appeal. Her proven ability in gardening should bode well with her ability to maintain the finer details of golf course greenery and maintenance.

Kim's background also includes preparing foods in a kitchen like setting for larger groups of people. Her past experience has been operating a food booth at the Barn Playhouse. This experience will come into use when the time comes to operate a kitchen clubhouse facility.

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Additional Management

Any additional required consultation on golf course management is only a phone call away as Bill has a very good contact whom has been on the management team of the Warman Golf Course from its inception. I also have available a consultant who lives in Osler and has worked on golf courses for the city of Saskatoon for 14 years.

The services of a Golf Course Superintendent will be available on a one-half day per week basis once the course prepares to opens. This position will be co-shared by other golf courses and managed by a local golf equipment supply firm from Saskatoon.

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Ownership

The Osler Golf Course will be a privately held corporation with majority ownership held by Bill and Kim Dyck. A few investors have contributed funds in exchange for a share offering at a latter date.

The transfer of the land base will be done when all pertinent documents are in place. After all legal documents are in place, the course itself will have title to 75 acres of land and be a registered corporation in the province of Saskatchewan. Once construction is completed the total value of the golf course with land base should be in the range of $1,000,000 CDN.

For additional information, please contact:
Bill Dyck
golfcourse9@canada.com

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