Gibraltar Springs Capital Corporation

Address:	RR#2, Ravenna, Ontario Canada N0H 2E0
Tel No.:	(705) 444-6263
Fax No.:	(705) 444-1041
Investor Relations Toll Free No.:	1-877-284-0487
Web Site:	www.gibraltarsprings.com
Corporate Email:	len@gibraltarsprings.com
Contact Person:	Len Vermeulen
Position:	President & CEO

COMPANY DATA

Traded Market:	TSX Venture
Traded Symbol:	YGP
Outstanding Shares:	21,813,925
Public Float:	7,000,000
52 Week High:	$ 0.55
52 Week Low:	$ 0.05
Present Price:	Click Here

INTRODUCTION

Gibraltar Springs Capital Corporation is located in Gibraltar, Ontario and is a mere 14 miles from the highest elevation in the province of Ontario, approximately 80 miles northwest of Toronto, Ontario Canada. Gibraltar Springs bottles Canadian Natural Mountain Spring Water. They began the development at its present location in the summer of 1991.

In the past several years, Gibraltar Springs has evolved into a producer of single serve P.E.T. (poly-ethelene-terapthalate). The 'Canadian Natural Mountain Spring Water' bottled water in a variety of sizes of clear and blue bottles. All spring water is filtered, ozonated and bottled at the source from their natural mountain spring.

Gibraltar Springs currently has a 50,000 square foot production facility where the Company has the capacity to produce over 4 million cases of product per year or annual sales of approximately $18 million. Gibraltar Springs intends to build a 225,000 square foot addition to the bottling plant. The addition will be designed to facilitate a substantial increase in bottling capacity. Based on current sales prices, the increased bottling capacity will accommodate total annual revenue of up to $135 million.

In addition to the current and future on site production, Gibraltar Springs has created alliances with Western Canadian bottlers to increase sales, become more competitive and have the ability to service international customers. In the United States, Gibraltar Springs recently created an alliance with The Suntory Water Group, located in Atlanta, Georgia, North America's fifth largest water bottler. The Suntory Water Group has twelve bottling plants strategically located in various parts of the United States.

WATER SOURCE

The Gibraltar Springs water source originates from the Lockport Amabel Aquifer, a rechargeable aquifer. The mineral content of the water is ideal and creates fresh tasting natural Canadian spring water. The property owned by Gibraltar Springs consists of approximately 100 acres, offering an additional buffer zone. The flow of water is constant throughout seasonal wet and dry periods, as the aquifer is not generally affected by local ground water conditions.

The Ontario Ministry of the Environment granted Gibraltar Springs a ten-year Permit to Take Water. This license is currently being renewed. The license provides for the taking of 358,459,200 liters per annum or approximately 30 million cases of 500 ml. 24 pack cases of product, which translates to estimated sales of $135 million. Water taking can be increased, by applying for an increase in the license. In addition, Gibraltar Springs can increase production by acquiring additional springs.

BOTTLED WATER MARKET AND THE COMPETITION

Based on the Beverage Marketing Corporation research report, a New York-based research and consulting firm mentioned that bottled water sales in the U.S. rose 9.3% in 2000 to $5.7 billion and this $35 billion worldwide industry continues to grow as water quality concerns and fitness and health awareness increases.

Bottled water sales in 2000 reached out 1.7 billion gallons and expected to grow at a compound annual rate of about 15% over the next five years, according to Beverage Marketing Corporation. In 2000, fruit beverage volume grew 1.4%, beer 0.8%, carbonated soft drinks 0.5% and bottled water 9.9%.

The competition for Gibraltar Springs is global by nature, as a result of the excellent quality of Canadian water, both real and perceived, and the global demand for 'Canadian' water, Gibraltar Springs has limited competition and a vast market. Canada has approximately twenty percent of the world's fresh water supply and only one half of one percent of the world's population. Gibraltar Springs has the infrastructure to compete effectively and is poised to meet the growing demand for Canadian water. As bottled water consumption continues to increase in accordance with industry predictions, both globally and in North America, Gibraltar Springs is expected to continue to grow with the market.

MANAGEMENT

Gibraltar Springs has well experienced management in different areas. The corporate and sales staff consist of:

President and Chief Executive Officer - Len Vermeulen,
Chief Operating Officer - Leo Baulke,
Controller - Suzanne Mannerow CA,
National Sales Manager - Mark Hill,
United States Sales Development Manager - Scott Harty,
Ontario Sales - Brewda Food Sales and Marketing Inc. - Joe Brewda,
Accounts Payable - Maureen Cunningham,
Account Receivable - Jennifer Woodcock,
Plant Supervisor - Michael Parks,
Quality Assurance Manager - Allyson Brady,
Shift Supervisors - Sherry Kinser, Lynn Winsor, Jim Edwards and Terry Harris,
Maintenance Manager - Bill Keating,
Logistics Coordinator - Hartley Winsor

GIBRALTAR SPRINGS OPERATION

A major transition of Gibraltar Springs has occurred in 1998 after Mr. Len Vermeulen joined the board of directors, he subsequently purchased the equity interest of one of the Company's founders. In February of 1999, Mr. Len Vermeulen was appointed President and CEO. Through Quik Commissions Inc., a company controlled by him, Mr. Vermeulen has acquired a majority interest in the Company.

Mr. Len Vermeulen prepared the Company for the rapid growth in the water category and dealing with high profile customers. The highest quality standards are controlled and maintained by the Company's in house quality assurance department. In addition, independent laboratories in the United States provide spring water analysis to the FDA in the United States, to confirm that their product meets required standards for export. Gibraltar Springs has developed a new high profile brand logo, label and carton, which are actively being marketed.

Prior to Mr. Len Vermeulen joining the Company as Chief Executive Officer in February of 1999, Gibraltar Springs' client base was a total of 21 individual customers. At that time, the sales force consisted of, a distributor in the United States and in house management, which focused on domestic sales. Sales in 1998 were a total of $3,991,000. The majority of the Company's production consisted of co-packing product for three competitive water-bottling companies. Gibraltar Springs was heavily reliant on its competitors for sales. Currently, co-packing represents less than 1% of total sales.

Sales have increased from $3,991,000 to $7,708,000 in fiscal 2001. Sales for the first six months of fiscal 2002 were $3,718,000. Sales of bottled water during the winter months are generally significantly lower than sales for the rest of the year. Management expects sales for fiscal 2002 to be approximately $10,000,000. This is average growth of 26%, compounded, over the last four years. Most of this growth was effectively attained prior to the Company retaining a formal sales staff. Sales are expected to continue to increase rapidly as a result of an increase in purchases by their existing customers, new branded business, new private label business, co-packing for their associate bottlers and the tremendous growth in single serve size bottled water sales. The growth in single serve bottled water sales in North America has been reported to be a buoyant thirty percent per annum for the last several years. This is forecast to continue.

NEWS UPDATE

On October 23, 2002, Quik Commissions Inc., the controlling shareholder of Gibraltar Springs Capital Corporation, announced that it plans to sell up to 6,000,000 common shares of Gibraltar Springs from its current holdings. It is intended that the shares will be sold by private agreement to customers, suppliers and current shareholders of Gibraltar Springs and others. The shares to be sold by Quik Commissions Inc. will be sold at a price of $0.50 per share. Some shares may be sold through the facilities of the TSX Venture Exchange (TSX-V) at prevailing market prices.

Gibraltar Springs also announced that it has agreed to sell up to 6,000,000 common shares to Quik Commissions Inc. at a price of $0.50 per share by way of a private placement. The shares of Gibraltar Springs to be purchased by Quik Commissions Inc. will be subject to resale restrictions under application securities legislation.

On September 27, 2002, Gibraltar Springs Capital Corporation announced its operating results for the third quarter and the nine months ended August 31, 2002. Sales for the third quarter increased 35.7% to a record $3,463,075. Net income increased 109.4% to $323,669, or $0.02 per share, compared with $154,593, or $0.01 per share, for the same quarter in 2001. Sales for the nine months ended August 31, 2002 increased 15.5% to a record $7,156,249 for the period, compared with $6,194,171 for the same period last year. The Company reported a net profit after taxes and unusual items of $34,206 compared with a net loss of ($311,036) for the same period last year.

On September 18, 2002, Gibraltar Springs Capital Corporation announced that it has signed an agreement with Avid Consulting & Export to provide branded and private label bottled water products to Avid's customers. Avid projects that sales to customers introduced to Gibraltar Springs by Avid will exceed 2.5 million cases or over $10 million in revenue in fiscal 2003. This would represent an increase in sales of over 100% for Gibraltar Springs in 2003 from those expected in the current year.

On July 30, 2002, Gibraltar Springs Capital Corporation announced the operating results for the six month period ended May 31, 2002. The Company reported a loss of ($244,613) or ($0.01) per share on sales of $3,717,773 for the six months ended May 31, 2002. This compares to a loss of ($465,620) or ($0.02) per share on sales of $3,639,943 for the six months ended May 31, 2001.

On May 23, 2002, Gibraltar Springs Capital Corporation and The Suntory Water Group headquartered in Atlanta, Georgia, U.S.A. announced that they have formed an alliance. The alliance has been created to market a full line of bottled water to common customers throughout the United States. The Suntory Water Group is one of the largest water bottling companies in the U.S.A. and the largest bottled water company with direct home and office delivery. Like Gibraltar Springs, The Suntory Water Group believes that developing strategic alliances with quality suppliers to improve service and competitiveness adds value.

CONCLUSION

The demand of bottled water in North America and global continues to grow because of the water quality concern and health awareness concern. Gibraltar Springs through acquisition, strategic alliance, and strong sales team brings the Company to advance to a new level. The sales in 2003 will increase more than 100% from the expected in the current year. Gibraltar Springs has a good potential to increase their market share in bottled water business in North America in next five years. More importantly, the Company's mission is to enhance shareholders value with the right company direction in the bottled water industry.