News Release

Vancouver  -- The B.C. Securities Commission has found that the Canadian Venture Exchange Inc. (CDNX) can proceed with disciplinary action against a B.C. man alleged to have breached Vancouver Stock Exchange (VSE) rules.

In a commission hearing and review, Harjit Singh Gill, formerly registered to trade securities in B.C., disputed the CDNX's (now the TSX Venture Exchange) authority to investigate or discipline him for allegations that he broke VSE rules.

A CDNX settlement proposal alleged that between Jan. 13, 1997 and Sept. 19, 1997, Gill broke a number of VSE rules, including that he:

• Engaged in manipulative or deceptive methods of trading in Sargon Resources Ltd.
• Accepted an undisclosed remuneration from a person other than the firm at which he was employed
• Guaranteed returns on client accounts
• Made future price predictions on the shares of Sargon
• Exercised discretion in the handling of accounts
• And, participated in an off-the-floor trade.

The commission panel ruled that the CDNX relied on its contractual authority to initiate disciplinary action against Gill. The panel found that the contractual rights and obligations of the VSE survived the 1999 merger that resulted in the formation of the CDNX.

The panel rejected Gill's argument that he had not entered into any contract with the CDNX because his registration was issued by the Investment Dealers Association (IDA) and not the VSE.

"We find that the IDA's acceptance of Gill's application for approval on behalf of the VSE, established a contractual relationship between Gill and the VSE," said the panel.

The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities and exchange contracts within the province. Copies of the decision can be viewed in the documents database of the commission’s websitewww.bcsc.bc.caor by contacting Andrew Poon, Media Relations, 604-899-6880.