GOAL

To encourage new owner investment in the Thoroughbred Racing and Breeding Industry of Ontario. The program is designed to bring neophyte owners into the industry, while providing an informed and committed management team to ensure that the new owners receive the maximum return on their investment. Such return shall not be measured purely on financial gain but in terms of learning, understanding, exploring and experiencing the world of Thoroughbreds in a positive and embracing environment. The mentorship program ensures that the new owners will be part of an experienced team to help them learn the ropes and protect them from some of the pitfalls sometimes associated with new ownership of racehorses. As an association that represents the breeders of Ontario, the CTHS will encourage new owners to participate in the purchase of an Ontario-Bred yearling but at the same time, in order to gain a more immediate entry into the world of Thoroughbred racing, the program will also include a provision whereby each new investor will gain a more immediate racing prospect by way of claim.

PROGRAM

The CTHS shall sell to new owners or previous owners looking for a more comfortable, group purchase opportunity, a 10% share in a racing syndicate for a cost of $10,000 ( subject to GST ). Each syndicate shall have a total of 10 stakeholders, holding 10% or one unit each. In each syndicate, there shall be nine “new” owners as well as one “mentor” or “racing manager” who shall be selected by the CTHS. The mentor will also contribute $10,000 to the syndicate, ensuring the syndicate has a total capitalization of $100,000. The CTHS will underwrite 50% of the mentors’ share in lieu of a management fee. The mentor or syndicate manager shall be exclusively responsible for the management and operation of the partnership. The CTHS shall have no responsibility or liability for the performance or operation of any such syndicate. It is the goal of the CTHS for 2006 to form three new such syndicates, delivering 27 new owners into the industry this year as well as three syndicate managers. The CTHS reserves the right to sell more or less such syndicates as demand dictates.

The syndicate shall invest their funds as follows:

$ 30,000     CLAIMING HORSE
$ 30,000     YEARLING PURCHASE September 2006 CTHS ONTARIO Sale
$ 40,000     RESERVE for OPERATING EXPENSES

ALL AMOUNTS SHOWN ABOVE ARE APPROXIMATE AND SUBJECT TO ADJUSTMENT BY THE SYNDICATE MANAGER

The intent is that this investment shall be self sustaining once fully capitalized, and as such shall not require further investment by the stakeholders. However, all investors must be aware that by its nature, the Thoroughbred Racing Industry is volatile in nature and that while each new owner will have the potential to experience many new emotional and financial highs, there is also a very real possibility of financial risks associated with the sport. As such, it is entirely possible that the syndicate will have future cash calls, and it will be incumbent on each unit holder to contribute the further capital as may be required based on their pro rata share. Investors should be aware that the average 12-month cost to own and maintain a Thoroughbred racehorse while in a racing mode, is approximately $30,000 per annum.

The CTHS shall appoint the trainers and mentors and will be responsible for the placement of all new investors into their respective syndicates.

As most Thoroughbred fans in Ontario are aware, the opportunity for a positive ROI (return on investment) has never been better than now for Ontario Thoroughbred Owners. The positive impact of both the slot machines at racetracks and the $9 Million Thoroughbred Improvement Program (TIP) administered by the Ontario Division of the CTHS has created purse pools approximately 200% greater than available 10 years ago.

The Industry is full of positive opportunity but has attracted only limited new investors in the last decade for a number of reasons, not the least of which is the difficulty for new investors to grasp and understand the business and to secure the appropriate assistance and guidance in order to become involved with some confidence. The CTHS of Ontario is very excited about this new opportunity and looks forward to introducing a number of new owners to the business. The plan is structured to create a positive and conservative introduction for new investors, many of whom will go on to larger and more personal investments at a later date with some solid knowledge and experience behind them. Many others however, will continue to enjoy all the positives of ownership while sharing the risks and costs with a number of other, like minded individuals.

For Further Information, contact:

Julie Coulter
THE CTHS of ONTARIO
PH : (416) 675 – 3602