When we look back on 2006 a few years from now, I think we will see that it was a turning point for the Company as the updated strategy we adopted in 2005 began to take effect.

•  As the year began, we were about six months into integrating Stablex, the first acquisition that broadened our service and customer base.

•  At the same time, the Montreal expansion was at its peak period of construction activity.

•  In April we acquired the Petcoke Services business, an important strategic addition to our services for oil refineries.

•  Then we were into the commissioning phase of Fort McMurray , having actually completed construction of the plant in 2003 and then maintained it in readiness for the important start-up phase. The commissioning went well, and in fact we produced saleable product that exceeded our own expectations. As we then moved into the ongoing production process we only had to fine-tune the plant to meet product specifications for quality. We were quite pleased with the success of the whole process.

•  And finally, in the third quarter we confirmed the additional capacity at the Montreal expansion and proceeded on to a successful start-up.

•  In the meantime, all the other parts of Marsulex continued to do what we do well – provide safe, reliable and efficient services to our customers.

I know it is often left to the end of these presentations to acknowledge employees, but I want to start there because they are a key strength for the Company. They are the ones who operate our facilities efficiently and safely on a day-to-day basis, earning the confidence and respect of our customers. Those relationships are a key factor in our success.

Our employee base has tripled over the past couple of years, going from fewer that 200 in 2004 to over 500 today, split almost equally between Canada and the U.S. As the Company grows, and as we broaden our services and expand our geographic reach, we need to constantly assess our ability to maintain excellence in all parts of our operations. That means adding depth to the range of skills and talents we can put to work for our customers. It's an area where we are focusing a good deal of spending. We are further strengthening management and technical skills through training and development, and we are hiring additional people to add to our bench strength.

The senior management team, which you see on the screen now, is no exception, and Bill Martin, who joined us in July last year as CFO is a good example. Bill's wealth of experience working with industrial companies and a leading accounting firm meant he was able to make an immediate contribution. More importantly, he provides leadership going forward, and as Marsulex increases in size and complexity he will be an important resource in our growth strategy.

I'll start with the acquisitions.

Stablex gave us an entry into the inorganic hazardous waste treatment industry, and with its excellent customer base and unique, world leading technology, gives us an excellent platform on which to build that business.

Petcoke was a strategically important addition to our range of industrial services. As well as expanding and strengthening the relationships we already have with oil refiners, it's an important expansion of the on-site services we provide for this key customer group.

In the photo on the screen now, the coker, or series of cokers, is in the foreground. The height and width of that structure is the size of a football field, and is generally the biggest and most robust piece of equipment at a refinery.

Not only is the visual impact significant, cokers also represent a huge capital investment, in the order of a billion dollars or more.

Petcoke cutting and removal, therefore, is a critical operation for refineries and it was our reputation for safe, reliable service that helped in our successful bid for the business.

It also gives us a useful vantage point for new opportunities to provide outsourced services to oil refineries as they expand their operations. There is clear evidence that many of the leading oil companies in North America need additional capacity. This need was highlighted recently in Ontario when a refinery incident resulted in a shortage of gas at a number of stations.

Stablex and Petcoke are not standalone businesses that have been tacked on to Marsulex. They are businesses that are synergistic with Marsulex, and fit comfortably into our business model and our view of the future. With acquisitions like these we are building a solid platform for future growth.

The completions of two large projects – Fort McMurray and the Montreal expansion – were important not only for the significant contribution each makes to our earnings base, but because they clearly demonstrate our ability to execute large scale projects.

Another aspect of the Syncrude project is that it demonstrates that Marsulex can draw upon resources throughout the Company to provide the technology and services our customers need. In this case the Power Generation group provided the unique ammonium sulphate scrubbing technology used in the scrubber and supervised the engineering and installation. As part of the upgrade at Syncrude, we view the Fort McMurray facility as a refinery customer within the Industrial Services Group, but because of the location of the plant, Western Markets Group looks after the operations and relationship management.

The 50% expansion of our Montreal facility was completed in the third quarter. The project commenced some years ago in response to our customers' need for more processing capability from us in order for them to meet new sulphur content regulations for on-road diesel fuel that came in to effect last year. The $76 million expansion was constructed and completed while we continued to provide continuous service to Shell and Petro-Canada. The earnings from the expansion will be an important factor in our growth for 2007.

The successful completion of the Fort McMurray and Montreal expansion projects have proven our ability to execute large scale projects that are critical to our customers' operations. This is an important consideration when future projects are being awarded and should give you as shareholders confidence that we have the ability to execute large projects successfully and that our relationships are being extended with long-term contracts.

Those highlights – the acquisitions, and the completion and start-up of Fort McMurray and the Montreal expansion – have significantly expanded the scope of our operations and added substantially to our earnings, although Fort McMurray , of course, has been contributing since January 2005. And just as important is the value they have added to our reputation and profile in the industry, and that puts our name front and centre when new projects are being developed.

One of the other strengths of Marsulex is our adherence to a set of Core Values that define the organization. Among those core values is a commitment to Organizational Excellence that encompasses the development of the people resources I mentioned earlier. We also have a commitment to Corporate Responsibility that ensures safe and environmentally responsible operations in accordance with the Responsible Care ethic.

Consolidated revenue was $250 million, 50% higher than 2005, and gross profit was $89 million, up 46% from 2005. EBITDA improved by $19 million, or 48%, to $59 million. Of this, $16 million was recorded in the Industrial Services Group.

2006 SG&A costs increased by $9 million offsetting some of the increase in gross profit. Most of this change is due to requirements of a larger base business following the two acquisitions. As a percentage of revenue, SG&A costs were in line with the historic averages of 12-13%.

Pre-tax earnings for the year were $9.6 million. In addition to higher depreciation and amortization, the Company recorded a $2.8 million non-cash asset impairment charge with respect to its Long Beach operations. We continue to evaluate our options with respect to this facility.

Income tax expense for 2006 was $2.5 million or 26% of pre-tax income. We experienced an improvement from our normalized tax rate of 36% principally due to federal tax rate reductions announced in the second quarter.

Our Western Markets Group has been a steady source of revenue and earnings for Marsulex. In the year it generated revenue of $62 million , up 9%, and gross profit of $25 million, up 14%. The improvements were generated by higher sales of sulphides and sulphur-enhanced products, which made up for lower water treatment chemical sales. Gross profit margin increased from 38% to 40%, reflecting lower costs for sulphur, a key input in the production of the group's products.

A key performance measure for Marsulex is cash flow. Because of the Company's conservative depreciation policies, we have historically generated cash flow from operations well in excess of our earnings. 2006 was no exception with consolidated cash flow from operations of $42 million before working capital changes, and $62 million after working capital changes.

Capital expenditures for 2006 were $43 million, of which $10 million was maintenance capital. Annual maintenance capex is typically in the $11- $12 million range. We fell short of planned expenditures in 2006 but expect some spillover into 2007.

Last week we announced our first quarter 2007 results.

You will note that in the first quarter we made a number of changes to our policies and presentation upon adoption of the new accounting standards for Financial Instruments. Although these changes were not significant to our overall financial results, I was disappointed with the direction that these new standards take. Consistency, comparability and transparency are all critical measures we employ in reporting our financial results to the investment community.

I believe these changes have resulted in less transparency of reporting and less comparability of our financial results. Be forewarned that more changes are in order as Canadian Standard setters have proposed a full migration to International Financial Reporting Standards by 2011.

Let me now return to the segmented results for the quarter.

Petcoke Services and the Montreal expansion drove revenue increases for the first quarter resulting in EBITDA of $13.3 million for the Industrial Services Group compared with $7.5 million last year. The Toledo acid regen business also performed well and Stablex reported higher revenue and gross profit, of approximately $1 million from short-term remediation projects.

The strong operating results have left our balance sheet in good shape. In order to create some additional flexibility to grow the business, we embarked on a refinancing of our credit facilities in early 2007.

In a nutshell, this new facility not only reduces our cost of capital, but provides us with additional flexibility to expand the business through organic growth and acquisitions. Additional acquisition capital of up to $75 million is now available from our bank syndicate.

Another indicator of the Company's sustainable performance was the Board's decision to adopt a dividend policy whereby Marsulex will pay regular quarterly dividends at an annualized rate of 60 cents per common share. The first payment of 15 cents per share was made last week. We distributed dividends totaling approximately $4.9 million to our shareholders at that time.

On a final note, the financial success of our Company is driven from the dedication of our employees and directors, and partnerships with our customers, our suppliers, and other stakeholders. As your Chief Financial Officer I would like to draw special attention and thanks to the Marsulex finance team, some of whom are in the room today, and to our bank syndicate and other advisors who have helped us to make Marsulex a better business that drives value to our shareholders

I'll now hand the presentation back to Laurie.

As I mentioned earlier, it is these existing relationships that will help us to drive organic growth. We have proven we can operate compliance facilities safely and efficiently, and we have also demonstrated that we can invest in the assets needed to provide outsourced services.

We believe, therefore, that in terms of the oil refining industry, the need to expand capacity at existing refineries will open up new opportunities for Marsulex.

There will also be similar opportunities for the Power Generation Group. With one of the world's largest installed bases of wet flue gas desulphurization systems, a renewed focus on North America, and proprietary technologies for emission controls, the group is well positioned to take advantage of new emission control projects.

To summarize,

•  We have successfully broadened our range of services and have a solid base of sustainable revenue and earnings.

•  We have broadened our customer base, through acquisitions such as Stablex and Petcoke Services, and in doing so have increased our access to new business opportunities.