Despite the current global situation and the weakening of the US dollar, Fur Harvesters Auction realized respectable prices and exceptional clearances on most items sold May 20, 2003.

Since our February 2003 auction, the Canadian dollar has strengthened 15 points to the US dollar. Although the actual US selling price of beaver rose over February's average, this increase will not carry forward to Canadian shippers in a positive way.

The situation with SARS and its effect on the Chinese market has brokers and manufacturers of goods destined for this market place, very uneasy. As business in China has slowed to less than a crawl, we feel fortunate to have sold otter at only 5% less than February's level and cleared 98% of our offering. With the world questioning the magnitude and duration of this virus, we feel fortunate to have this sale over and done with. Positions like this are not easily taken and like all decisions taken here, we put our shippers first. Our competitor's decision to postpone their May auction and partner with Copenhagen Fur Center and sell in June could not have been easy as well. As Seattle was, and continues to be SARS free, our decision was strongly justified. Whereas Toronto is deemed North American headquarters for this virus, many buyers would have cancelled rather than risk contacting SARS.

Will the SARS concern be cleared up by June and will the American dollar strengthen to February's level? Our thoughts on both questions were no and our position was to stay the course. If by our June 23, 2003 auction, conditions do improve, we are very optimistic sales of wild fur will improve accordingly.

The market and interest continues to be very strong on wild fur. It is the poor mix of the world's current situation at this time hindering it. Such issues are beyond our control and must be endured. I hope this report finds you and your family healthy and safe, as this is what is most important.

Respectfully,

Mark Downey
Chief Executive Officer