News Release

Released: 08/14/00 Contact: Dean Pelkey
NR #00/35 (604) 899-6880 or
(BC only) 1-800-373-6393

Vancouver - A scheme hatched by a husband and wife to distribute shares from a private placement in the Quinto Mining Corporation to other investors contravened the Securities Act, the British Columbia Securities Commission has determined.

Paul Schiller was president of Quinto Mining in 1993 when he and his wife Betty Schiller reported the distribution of 150,000 units (shares and warrants) to Betty Schiller through a private placement. However, the commission found that the 150,000 units were actually distributed to several investors in the United States and Ontario.

Through their involvement in this distribution, both Paul Schiller and Betty Schiller contravened the registration and prospectus requirements of the Act. The commission also found that the Schillers acted contrary to the public interest in filing documents with the commission and the Vancouver Stock Exchange that showed Betty Schiller, rather than the investors, to be the purchaser of the units.

When the 150,000 warrants were exercised in 1994, Betty Schiller kept a number of shares that were supposed to have been given to one of the investors. When that investor threatened the Schillers with legal action, Quinto issued a cheque to the shareholder in an amount slightly less than the amount he claimed. Both the Schillers signed that cheque on behalf of Quinto.

By their involvement in this transaction, Betty Schiller perpetrated a fraud on the shareholder and both Paul Schiller and Betty Schiller perpetrated a fraud on Quinto, the commission found.

The commission will hear further submissions before issuing orders respecting its findings.

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 on the commission’s website www.bcsc.bc.ca or by contacting Media Relations Officer Dean Pelkey at 899-6880. Backgrounder

Here is a list of the findings of the Commission. Text of the full decision can be found in the BCSC documents data base at www.bcsc.bc.ca.

1. Paul Schiller and Betty Schiller distributed securities without being registered and without filing or obtaining a receipt for a prospectus, contrary to sections 20 and 42 of the former Act (now sections 34 and 61 of the Act);

2. Paul Schiller certified a document filed by Quinto with the Commission that contained statements that were false and misleading;

3. Paul Schiller and Betty Schiller caused Quinto to breach its Listing Agreement with the Vancouver Stock Exchange and a listings policy of the Vancouver Stock Exchange;

4. Paul Schiller exchanged free trading shares of Quinto, held by him, for Quinto shares subject to a 12 month hold period, held by other shareholders of Quinto; and

5. Paul Schiller and Betty Schiller perpetrated a fraud on Quinto and Betty Schiller perpetrated a fraud on Wallis Wood in connection with the exercise by Betty Schiller of Quinto share purchase warrants, contrary to section 41.1(c) of the former Act (now section 57(c) of the Act).