From: Greg Missal [missal@tahera.com]
Sent: Thursday, January 12, 2006 9:08 AM
To: Jim Rogers
Cc: Phyllis Beaulieu
Subject: RE: Confirmation of Jericho Securities

Hi Jim,
Happy New Year.

I can provide a formal response to you, but just so you know the Letters of Credit renew automatically annually.  The LOC's that you have listed have had this automatic renewal occur annually since 1998.  There is no way for Tahera (or Benachee) to cancel these LOC's on our own.  They can only be cancelled if the payee (i.e. Receiver General) provides the bank with instructions that the funds can be released.

I have talked to the Bank (and all Banks seem to be the same), in the past, about this point be confusing.  Apparently there needs to be an annual renewal date on the LOC, but there is also wording that says they will renew automatically unless they are cancelled (and as I noted above only the Receiver General can provide a release in this case).  

I hope this gives you some comfort.  Perhaps we can get TD Bank to send you something indicating that they have/will be renewed.

Let me know if you have any questions.

Best Regards,
Greg 

-----Original Message-----
From: Jim Rogers [mailto:rogersji@inac-ainc.gc.ca]
Sent: Thursday, January 12, 2006 10:48 AM
To: Greg Missal
Cc: Phyllis Beaulieu
Subject: Confirmation of Jericho Securities

Attached is a letter requesting confirmation of renewal of Benachee Resources Incorporated, a wholly-owned subsidiary of Tahera Diamond Corporation, securities for the for the Jericho Diamond Project, Kitikmeot region, Nunavut under the Nunavut Water Board water licence NWB1JER0410.

A signed letter has been sent by mail.

If you have any questions, please contact me at (867) 975-4550.

Jim Rogers
Manager, Water Resources
Iqaluit, Nunavut