Although the winter and spring of 2009were tough on all of us and particularly thereal estate market, we have seen very posi-tive signs throughout the summer that themarket is moving in the right direction. Re-cord real estate sales were seen in June andJuly and inventories are at an all time low.It appears it is perfect timing for ourlaunch of the Headwaters Club pre-salesprogram! It has been an exciting summer forTreegroup in many areas but most particular-ly in the area of our Ponderosa developmentin Peachland, B.C.In August/September we obtained nalapproval of two key items for moving forwardwith the project and on August 17th GregNorman arrived in person and headlined alarge press event held to publicly announcethe commencement of the $1 billion dollarproject. Please take the time to see details atwww.ponderosaliving.ca

Greg Norman and Treegroup CEO Norm Porter at Ponderosa press conference, August 17, 2009

Investor Newsletter

Issue No.3, September 2009 - Headwaters Club Update

We hope you enjoy the newsletter. Thereare a variety of special dates and functionsto be aware of so please take note andfeel free to call our ofces if you have anyquestions.As outlined in our previous newsletterour focus over the past 6 months has beento advance our marketing strategy for theHeadwaters Club project. In early May webegan the amazing build out of our retailspace at Grandview Corners in South Surrey.On September 26th the transformation ofthe 3,000 square foot area was complete,inclusive of a fully furnished 940 square foottwo bedroom unit for viewing. The centrealso includes interactive displays and videodetailing the Headwaters Club businesscentre amenity along with details of each in-dividual unit for sale. It is a very welcomingand comfortable space that our sales teamwill be stafng 7 days a week.A large part of our pre-sales marketingprogram includes local media. You mayhave heard some of our ads on local radio;namely News 1130 AM. Print media in localpublications like “The News” and “Vancou-ver Sun” are also supplementing our radiocampaign.In August we began work on the on-sitestorm water outfall for the project andbegan completion of the 31st Avenue accessroad off Croydon Drive. This includes fenc-ing and landscaping along the route to theproject site. We welcome you to tour thearea at 3080 Croydon Drive. Marketing anddirectional signs are in the process of beinginstalled over the next two weeks.We are very excited about the Head-waters Club project and very proud of thesales centre that is now open. The projectis most denitely “one of a kind” and thesales centre is unlike any you have seenbefore in this area.A “VIP” opening event is being plannedfor October but we encourage you to drop byanytime to have a look. On opening week-end, ve homes were sold and we expect therst phase building of 62 homes to sell outquickly. If you are interested in a personaltour, please contact our Sales Manager, RodSopko by cell phone at 778-882-3142 toarrange a viewing time.

HighlightsTreegroup introduces Homes with Privileges.

Summer is over and we’re back intothe regular routines of fall. As in previousnewsletters this third issue of our TreegroupInvestor Newsletter will provide updates onour various projects.

A slow spring real estate market hasemerged as a much more positive summermarket in the East Kootenay’s of B.C. TheInvermere/Windermere area has seen asharp improvement in sales through Julyand August. With the onset of winter in2008 we suspended construction on theAspen Meadows site and were planning tocontinue operations in Spring 2009.With the negative change of market con-ditions in the Spring we chose to suspendoperations until things improved.In August 2009 we re-evaluated our posi-tion and went to the construction marketto re-price the construction componentsrequired to complete the servicing of thelots. We were pleasantly surprised by thecost decreases and have proceeded withcompletion of the curb and gutter and pav-ing of the roadways on site.Water has been hooked up to municipalservice and we are ready for completion ofshallow services (electrical and cablevision).The perimeter trail system is now underconstruction and the on-site pond is com-plete and operational creating a beautifulvista for surrounding lots.Our marketing efforts have included localprint advertising along with the launchingof the Aspen Meadows website atwww.aspenmeadows.net.We also have a largebillboard sign on Highway 95 in view ofvisitors arriving from Calgary along with alarge site sign which is viewed easily fromthe highway. Overall the results have beenvery positive.We have had many groups visit the siteover the summer and have now conrmedsales for four lots. The completion of thesite roadway will provide a much betteropportunity for potential buyers to viewthe site and we expect interest to continuethrough to Thanksgiving.With the onset of winter approachingour big marketing push will be in the Springof 2010 and will include the addition ofa show home on site which will beginconstruction in October 2009.

Market momentum at Aspen MeadowsIt’s a whole new world at Headwaters Club

City-savvy interiors, cooking classes, wine tastings and wellness workshops are just a few of the privileges that will come with every homeat Headwater’s Club. The revolutionary Lifestyle Headquarters gives home owners a 7,200 sq ft amenity area complete with unique BusinessHub, Fitness Centre and Lifestyle Centre. Visitheadwatersclub.cafor more info.