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At the start of the year the outlook for the drilling season was very poor. Gas prices in particular collapsed. Because of favourable oil prices in December of 2009 oil drilling took on an optimistic view. That optimism soon put Panther Industries in the position to move an unexpected amount of Hydrochloric acid HCL. This was truly unexpected but welcomed business. Potash also had a very gloomy outlook at the start of the year. During 2009 potash prices peaked at eleven hundred dollars a tonne. Our customers were finding cheaper alternatives. During that time potash volumes had decreased by fifty per cent. There was no way of knowing what would happen when prices were slashed in half. If potash volumes stayed at the low level there would be devastating effects on sales. The year had started with pessimism but ended very impressively. The first quarter started on queue with nothing notable about it the second quarter started out strong even though potash prices were slashed in half what did not look sustainable proved otherwise. The results are in for the final quarter and all I can say is WOW Panther Industries revenue was just off the mark from having the best year in Panthers history. Two events were responsible for this achievement - potash sales doubled and HCL sales grew five times from the previous year. Panthers HCL supplier Erco Worldwide did a splendid job of supplying acid in a timely manner. Strategies for both companies have improved with clear vision of continued improvements for increasing the number of tonnes into the industry. It is apparent that rail will be part of that vision. In the past Ercos facility in Saskatoon loaded HCL into rail cars. Panther can accommodate Erco by having these cars shipped to Panther Industries in Edmonton. Panthers sister company ClearTech Edmonton is presently receiving these cars at 180th Avenue. Trucks are loaded for Panther whenever possible to help meet some of the demand. Panthers capital budget has been quite lean for a few years. This coming year looks expensive as Edmonton has a few situations to resolve including the necessity of finding a location with rail access to move larger quantities of HCL. It is probably a good time to do this seeing real estate is priced lower and more storage is required to expand the pallet side of Panthers business. Disposal of the waste wood from pallet production is expensive in Edmonton. Panther needs to acquire the equipment to turn the wood waste into a saleable product. Panther Davidson is getting closer to automating the chemical side. It has been eight years of investigating and comparing capabilities of different systems. Most of the system design is complete with only one component missing and recent bag changes could make this an easier decision. Looking forward to the coming year we can be very optimistic indeed. Panther has some good opportunities on which to focus. These opportunities are made possible because of our customers suppliers carriers and Panther employees. Jack Schneider 2010 Annual Report 5