Auscan Melaleuca Ltd.

NEWSLETTER #10
JUNE 2009

We have recently contacted the majority of you to discuss the supply and pricing of oil from the upcoming 2009 harvest.

There are many factors that affect the availability and cost of each tea tree oil harvest.

This year's harvest, which is normally conducted in June through to September, is already being delayed because of major flooding in the Northern Rivers area of New South Wales (see a recent photo below) and to a lesser degree in the tea tree oil producing area where our Plantation is located. This situation will significantly delay harvesting and will adversely affect the crop yield.

We also understand that there may be some uncertainty within the industry as to how much oil will be available from current sources.

This past year has also seen some interesting movement between the US and AUD foreign exchange. We are all looking for some protection in respect of these fluctuations and AUSCAN has attempted in the past to take the financing and currency risk out of the equation for our customers.

We understand that many of you are in a difficult position because of the uncertain economic times we are in, but these are the reasons why it is important for us to obtain an allotment of oil from this upcoming harvest as soon as possible to ensure a steady supply of quality oil for our clients.

AUSCAN MELALEUCA LTD.
P.O. Box 874 – 151B Trillium Drive
Kitchener, ON N2G 4C5
Phone: 519-893-0969
Fax: 519-893-4384
info.auscan.net