FOR AGE ORBIT INC. CONSOLID A TED ST A TEMENTS OF C ASH FLOWS Y ears ended January 31, 2007 and 2006 2007 2006 $$ OPER A TING A CTIVITIES Net earnings .................................................. 6,138,526 1,429,570 Items not affecting cash: Gain on sale of long-term investments .............................. (47,036) (25,165) Amortization of capital assets .................................... 1,042,417 830,818 L oss on sale of capital assets ..................................... 3 7 8 10,037 F uture income taxes ........................................... 75,692 14,615 Share of net earnings of company subject to significant influence ........... (64,802) (24,459) Non-controlling interest ......................................... (132,692) — 7,012,483 2,235,416 Changes in non-cash operating working capital items (Note 11) ............. (3,363,394) (349,175) 3,649,089 1,886,241 INVESTING A CTIVITIES V ariation of advances to a company subject to significant influence ........... 50,000 (50,000) V ariation of advances to private companies ............................ 30,250 (130,250) V ariation of advances to the parent company ........................... (142,523) (62,400) V ariation of a loan to an individual .................................. 11,109 (3,206) A cquisition of long-term investments ................................. (94,175) (260,000) P roceeds from sale of long-term investments ........................... 236,323 44,314 A cquisition of capital assets ....................................... (2,955,782) (1,544,587) P roceeds from sale of capital assets .................................. 62,870 11,280 Business acquisition, net of cash acquired of $300 (Note 2) ................ (499,700) — P roceeds from sale of investment in a company subject to significant influence . . 250,000 — (3,051,628) (1,994,849) FINANCING A CTIVITIES P roceeds from long-term debt ...................................... 1,000,000 598,211 R efundable taxes — net .......................................... 5,452 — R epayment of long-term debt ...................................... (1,148,021) (784,235) R edemption of shares ............................................ (53,242) — Dividends paid ................................................. (351,005) — (546,816) (186,024) NET V ARIA TION OF CA SH AND CA SH EQUIV ALENTS ................ 50,645 (294,632) CA SH AND CA SH EQUIV ALENTS, BEGINNING OF YEAR .............. (49,068) 245,564 CA SH AND CA SH EQUIV ALENTS, END OF YEAR (Note 11) ............. 1,577 (49,068) A dditional information (Note 11) F-32