Dear Investor

The Basis Pac-Rim Opportunity Fund ("Fund") predominantly invests all of its cash into the Basis Pac-Rim Opportunity Master Fund ("BPROMF"). The letter has an investment in the Basis Yield Alpha Feeder Fund ("BYAFF").

The BYAFF predominantly invests all of its cash into the Basis Yield Alpha Master Fund ("BYAMF") which is currently in provisional liquidation with certain representatives of Grant Thornton acting as Joint Provisional Liquidators ("JPLs"). As in indirect investor in the BYAFF, the Directors of the Fund received today the attached correspondence from the Directors of the BYAFF regarding the current state of the BYAMF.

Naturally, as Directors of the Fund, we are disappointed with the outcome of this investment but nevertheless support the decision of the JPLs and the Directors of the BYAFF as being the means by which this matter can be expedited on behalf of all investors in the Fund.


Yours Sincerely

Basis Pac-Rim Opportunity Fund
December 13th, 2007