FOR AGE ORBIT INC. NOTES TO THE CONSOLID A TED FINANCIAL ST A TEMENTS (Continued) Y ears ended January 31, 2007 and 2006 6. C APIT AL AS SETS (Continued) Accumulated Net book Cost amortization value 2006 $$ $ Building .................................................... 45,000 7,061 37,939 Office equipment .............................................. 94,120 67,366 26,754 V ehicles .................................................... 1,359,804 755,494 604,310 Mining equipment ............................................. 5,467,372 2,444,392 3,022,980 Equipment .................................................. 103,542 53,053 50,489 Computer equipment ........................................... 93,281 60,352 32,929 L easehold improvements ......................................... 59,993 27,290 32,703 7,223,112 3,415,008 3,808,104 7. BANK O VERDR AF T AND BANK LOAN The company has an authorized line of credit for an amount of $3,500,000 bearing interest at prime rate plus 0.50% renewable in May 2007. Any funds advanced pursuant to this line of credit as well as certain long-term loans are secured by all present and future assets up to $6,000,000 and by general guarantee from the shareholders for an amount of $300,000. As at January 31, 2007, the l ine of credit was not use by the company. On January 31, 2007, the prime rate is 6%. Under the terms of bank loan, the company must satisfy certain restrictive covenants as to minimum financial ratios. 8. LONG - TERM DEBT 2007 2006 $$ Bank loan, payable on July 22, 2008 in monthly instalments of $41,667 plus interest calculated at the prime rate plus 0.50% (Note 7) (a) ............................................ 750,000 1,250,000 Bank loan, payable on July 22, 2008 in monthly instalments of $13,889 plus interest calculated at prime rate plus 0.50% (Note 7) (a) ................................................ 250,000 416,667 Bank loan, payable on November 8, 2008 in monthly instalments of $37,037 plus interest calculated at prime rate plus 0.50% (Note 7) (a) ............................................ 777,778 — Debentures maturing in October 2008, payable in quaterly instalments of $12,500 plus interest calculated at 10% plus 0.40% of the earnings before income taxes, amortization and interest .............. — 137,500 L oans, payable in monthly instalments including interest, secured by vehicles: $1,341, 6.90%, April 2007 (a) ................................................. 3,987 19,274 $1,119, 0%, November 2007 .................................................. 11,191 24,620 $758, 8.25%, March 2009 (a) ................................................. 17,985 34,480 $1,058, 0.90%, October 2008 (a) ............................................... 22,040 25,265 $754, 5.990%, January 2008 .................................................. 8,714 17,021 $1,686, 0%, F ebruary 2010 ................................................... — 60,638 $1,073, 5.90%, May 2006 .................................................... — 4,251 1,841,695 1,989,716 Current portion .......................................................... (1,841,695) (796,157) — 1,193,559 (a) These loans have been paid in F ebruary 2007. F-37