At a meeting held on March 29, 2005, prior to the Regular Meeting of Council, Council discussed the pecuniary conflict of interest situation regarding Councillors Eglinski, Rosnau and Schlosser.

Council agreed, at that meeting, that if Councillor Rosnau and Councillor Schlosser publicly acknowledged the breaches of the Municipal Government Act and apologized to Council and the
public, Council would not pursue the matter in court.

At the Regular Meeting of Council held March 29, 2005, Councillor Schlosser acknowledged that he had violated the pecuniary interest provisions of the Municipal Government Act at the January 24,
2005, Regular Meeting by remaining in the council chambers and voting on a presentation from his employer, Northern Gateway Regional School Division No. 10, regarding a possible partnership with
the Town. Councillor Schlosser also acknowledged that he had violated the pecuniary interest provision of the Municipal Government Act in relation to an amendment to the Snow Removal Policy
that will require his employer to handle snow removal at school bus pickup sites. Councillor Schlosser apologized to the Council and Public for the breaches of the act, noting that they were inadvertent and
that he will ensure that he will not vote on matters affecting his employer in the future.

At the same meeting, Councillor Rosnau acknowledged that she had violated the pecuniary interest provision of the Municipal Government Act at the November 22, 2004, Regular Meeting of Council by
voting on a payment to Beaver Creek General Store, which is owned by her mother, in the amount of $30.00. At the January 10, 2005, Regular Meeting of Council, Councillor Rosnau voted on a payment
to the same store in the amount of $28.56.

Councillor Rosnau also acknowledged that she had violated the pecuniary interest provisions of the Municipal Government Act in dealing with an FCSS Grant application at a Community Services board
meeting held December 14, 2004. The grant application was for $7,500.00 to pay utility accounts in a building owned by Whitecourt Leasing. Councillor Rosnau is listed as a director of 256926 Alberta
Ltd., which is a shareholder of Whitecourt Leasing. Councillor Rosnau apologized to Council and the Public, noting that the breaches of the act were inadvertent.

With regard to Councillor Eglinski, Council is concerned with regard to his voting on matters that affect his stepdaughter Shannon Rosnau. While the Municipal Government Act does not specifically include
step-daughter as a relation that would give rise to an issue of pecuniary interest, Council feels that the intent of the section of the act is to ensure that members of Council do not vote on matters where a Councillor’s vote may be influenced by his or her relationship with an individual. Council has decided, in the best interest of the Town, not to pursue this matter in court to seek a judge’s opinion on whether a stepchild gives rise to a possible pecuniary interest.

We thank the citizens of Whitecourt for their patience and understanding during this process. The Council as a whole confirms this has been a trying time for all parties involved and is looking forward to working together as we move towards the future.