News Release

Released: October 10, 1997  Contact: Barbara Barry  660-4800 or (BC only) 1-800-373-6393

Vancouver - The British Columbia Securities Commission today issued orders against Jan H. van der Weij and John W. Fisher prohibiting them from acting as directors and officers of any reporting issuer for two years following a hearing into their conduct as directors and officers of Silverspar Minerals Inc., a VSE listed company. These two individuals had conferred unauthorized benefits to themselves in the amount of US$91,650.

In 1993, Silverspar, a junior resource issuer, acquired an option to purchase a property containing fluorite near Salem, Kentucky. To fund the purchase and development of the property, Silverspar issued over $5.5 million of special exchangeable promissory notes by way of private placement. In April 1994, a prospectus qualified the common shares issuable upon the exchange of the special notes.

The exploration program described in the prospectus commenced in the spring of 1994. However, by the end of 1994, a group of dissident Silverspar shareholders began voicing their disapproval with how Silverspar was being managed and began a push to remove the existing board, including van der Weij and Fisher. When it became evident in May 1995 that the dissidents were going to be successful in removing the existing board, van der Weij instructed Fisher to issue cheques payable to themselves on Silverspar's account in the amount of US $91,650.

The Commission concluded that this was a serious breach of their duties as directors to act honestly and in the best interests of Silverspar. Fisher's and van der Weij's defence that they believed new management might not honour their employment contracts and outstanding expenses if they were terminated, was found to be irrelevant by the Commission.

In addition, the Commission removed van der Weij's trading exemptions for six months finding that he failed, as senior management, to ensure that Silverspar's prospectus contained full, true and plain disclosure of all material facts. The Commission found that the prospectus failed to disclose that a significant amount of the proceeds had been spent as of the date of the prospectus and that a finder's fee of $71,000 was paid to van der Weij.

The British Columbia Securities Commission is the independent provincial government agency responsible for regulation of securities and exchange contracts in the province.

Copies of the Commission decision (34 pages) may be obtained in person at 1100 - 865 Hornby Street, Vancouver, British Columbia.