FOR AGES GAR ANT & FR ` ERES INC. ST A TEMENTS OF RET AINED EARNINGS 3-month period ended September 30, Y ears ended June 30, 2006 2006 2005 (restated) (restated) $$ $ BALANCE, BEGINNING OF PERIOD As previously reported .................................. 3,557,944 2,496,199 2,204,105 Change in accounting policy, income taxes (Note 2) ............. (256,902) (175,352) (158,177) As restated .......................................... 3,301,042 2,320,847 2,045,928 NET EARNINGS ....................................... 815,196 1,082,807 277,769 REFUND ABLE T A XES RECO VERED ...................... 38,126 — — 4,154,364 3,403,654 2,323,697 DIVIDENDS .......................................... 1,000,000 — — CAPIT AL DIVIDENDS .................................. — 98,608 — REFUND ABLE T A XES P A Y ABLE .......................... — 4,004 2,850 1,000,000 102,612 2,850 BALANCE, END OF PERIOD ............................. 3,154,364 3,301,042 2,320,847 F-46