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## NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 

Years ended December 31, 2011 and 2010 (In thousands of Canadian dollars, except share and per share information) 

## (f) Currency risk 

## Exposure to currency risk 

The Company’s exposure to foreign currency risk was as follows based on notional amounts: 

<img src='content_image/141804.jpg'>

## Sensitivity analysis 

A five percent strengthening of the Canadian dollar, as indicated below, against the following currencies at December 31 would have increased (decreased) equity and earnings by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant. 

<img src='content_image/141805.jpg'>

A five percent weakening of the Canadian dollar against the above currencies at December 31 would have had the equal but opposite effect on the above currencies to the amounts shown above, on the basis that all other variables remain constant. 

## (g) Interest rate risk 

An increase of 100 basis points in interest rates at the reporting date would have decreased net earnings by $0.2 million (2010: $0.4 million) and have no impact on other comprehensive income. This analysis assumes that all other variables, in particular foreign currency rates, remain constant. The analysis is performed on the same basis for 2010. 

