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2015 ANNUAL REPORT Statements of Cash Flows Years ended Feb 28, 2015 Feb 28, 2014 Cash provided by (used in): Operating activities: Net income and comprehensive income $ 4,240,298 $ 2,025,183 Change in non-cash operating items: Accrued interest receivable (127,511) (272,452) Prepaid expenses (9,088) - Other assets 5,000 (5,000) Due to Fund Manager 119,904 93,219 Accounts payable and accrued expenses (14,001) 16,920 Share based compensation 8,634 5,000 4,223,236 1,862,870 Financing activities: Change in subscription proceeds receivable 72,600 (181,611) Proceeds from issuance of Class A preferred shares 16,111,590 13,373,672 Proceeds from issuance of Class B preferred shares 6,936,556 11,411,434 Redemption of Class A preferred shares (2,774,200) (694,129) Redemption of Class B preferred shares (271,716) (9,000) Cash dividends paid (2,153,188) (1,032,745) 17,921,642 22,867,621 Investing activities: Funding of mortgage loan investments (59,438,387) (38,148,352) Discharge of mortgage loan investments 39,187,020 14,099,748 (20,251,367) (24,048,604) Increase in cash 1,893,511 681,887 Cash, beginning of year 810,825 128,938 Cash, end of year $ 2,704,336 $ 810,825 Supplemental cash flow on non-cash financing activities: Class A preferred shares issued under dividend reinvestment plan (note 7) $ 1,401,616 $ 746,055 Class B preferred shares issued under dividend reinvestment plan (note 7) 585,537 174,189 Cash flows from operating activities: Interest received $ 5,177,131 $ 2,274,993 See accompanying notes to financial statements. 44

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