Quest Capital Corp. believes it has been a passive foreign investment company ("PFIC") as defined in Section 1297 of the Internal Revenue Code since its taxable year ended December 31, 2003. Quest Capital Corp. anticipates that it will likely be a PFIC in subsequent taxable years.
A U.S. shareholder holding a PFIC stock is subject to complex PFIC rules. We recommend that U.S. Holders consult with their tax advisors regarding the PFIC status of Quest Capital Corp.