News Release

Vancouver – The British Columbia Securities Commission disciplined a B.C.-based mining exploration company officer over false and misleading statements the company made in records filed with the BCSC and the company’s failure to meet disclosure standards for mining companies.

Under the settlement, Barry Whelan cannot prepare or disseminate mining disclosure required under securities laws for two years without supervision and he cannot act as a director of a public company until he successfully completes a course on the duties and responsibilities of directors and officers. Whelan also agreed to pay $5,000 to the BCSC.

Whelan is the chief operating officer of Hard Creek Nickel Corp. (formerly Canadian Metals Exploration Ltd.). He was a director of the company during the period when the securities law breaches occurred and he also served intermittently as the company’s president. In an earlier settlement with the BCSC, the company agreed to pay $20,000 and that Whelan would not serve as a director of the company, or prepare or disseminate Hard Creek’s disclosure required under securities laws.

Hard Creek, a TSX Venture Exchange-listed company, has an exploration-stage nickel property in northern B.C. called the Turnagain Nickel Project. During the year ending July 2003, Hard Creek breached securities requirements when it:

• made disclosure in its annual information form and on its website that did not comply with mining disclosure standards
• made false and misleading statements in records filed with the BCSC.

Hard Creek did this despite warnings from BCSC staff and despite telling staff it would correct its disclosure during a previous disclosure review.

In the 10 months ending in May 2003, Hard Creek sold securities to 85 investors on the basis that the securities would have a four-month hold period, when it was only eligible to distribute securities with a 12-month hold.

In the settlement with Whelan, the BCSC noted that he relied significantly on another director of Hard Creek, Stewart Jackson, for the content of the company’s mining technical disclosure. A hearing into Jackson’s conduct is scheduled to proceed on Jan. 24, 2005.

The B.C. Securities Commission is an independent provincial government agency responsible for regulating trading in securities within the province. You may view the settlement on our website www.bcsc.bc.ca by typing in the search box, Barry Whelan or 2004 BCSECCOM 729. If you have questions, contact Andrew Poon, Media Relations, 604-899-6880.