Mh Westshore Terminals Income Fund Financial Reporting Management's Report The financial statements and other information in this annual report have been prepared by and are the responsibility of the management of the Fund. The financial statements have been prepared in accordance with accounting principles generally accepted in Canada and reflect where necessaty management’s best estimates and judgments. Management is also responsible for maintaining systems of internal and administrative controls to provide reasonable assurance that the Fund’s assets are safeguarded, that transactions are properly executed tn accordance with appropriate authorization and that the accounting systems provide timely, accurate and reliable financial information. The Trustees are responsible for assuring that management fulfills its responsibility for financial reporting and internal control. The Trustees perform this responsibility at meetings where significant accounting, reporting and internal control matters are discussed and the financial statements and annual report are reviewed and approved. The financial statements have been audited on behalf of the Unitholders by PricewaterhouseCoopers LLP, Chartered Accountants, in accordance with Canadian generally accepted auditing standards. The Auditors’ Report outlines the scope of their examination and their independent professional opinion on the fairness of these financial statements. William W. Stinson Trustee M. Dallas H. Ross Trustee We have audited the balance sheets of Westshore Terminals Income Fund (the Fund) as at December 31, 2002 and 2001 and the statements of earnings and unitholders’ equity and cash flows for the years then ended. These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards. ‘Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In our opinion, these financial statements present fairly, in all material respects, the financial position of the Fund as at December 31, 2002 and 2001 and the results of its operations and its cash flows for the years then ended in accordance with Canadian generally accepted accounting principles. Chartered Accountants, Vancouver, British Columbia February 13, 2003 (except for note 7(a), which is as of February 28, 2003) Yrınnterhrunterpnv LLP Auditors’ Report To the Unitholders of Westshore Terminals Income Fund