content_image/292465.jpg
## Internal Controls over Financial Reporting (“ICFR”) 

The CEO and CFO of the Company, together with Management, have established and maintained the Company’s internal control over financial reporting (“ICFR”), as defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with Canadian GAAP. 

The design of CUC’s internal controls over financial reporting has been established and evaluated using the criteria set forth in the Internal Control-Integrated Framework by the Committee of Sponsoring Organisations of the Treadway Commission (“COSO”). Based on the assessment, it was concluded that CUC’s internal controls over financial reporting are adequately designed and operating effectively as of December 31, 2011. 

There has been no change in the Company’s ICFR that occurred during the period beginning on October 1, 2011 and ended on December 31, 2011 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting. 

## Outlook 

In December 2011, the Company filed its 2012 - 2016 CIP totalling approximately $192.0 million with the ERA. $131.0 million of the submission is proposed non-generation installation expenditures. Generation needs are subject to a competitive bid process. 

## Subsequent Events 

The Company’s analysis of the cost effectiveness of refurbishing the damaged 7.59 MW unit was concluded in February 2012. The investigation indicated that refurbishment of the damaged unit would not be cost effective. The ERA has been provided with the results of the Company’s assessement in order to approve the retirement of the unit. 

In February 2012, the Company purchased two of the temporary generating units that were placed into service in the Second Quarter of 2011. The purchase of these units ensures that the Company is in compliance with capacity requirements. 

## Outstanding Share Data 

At February 24, 2012 the Company had issued and outstanding 28,626,677 Ordinary Shares and 250,000 9% cumulative Participating Class B Preference Shares. 

Additional information, including CUC’s Annual Information Form, is available on SEDAR at www.sedar.com and on the Company’s website at www.cuc-cayman.com . 

<img src='content_image/292465.jpg'>

March 9, 2012 

