News Release

Vancouver – The British Columbia Securities Commission disciplined a B.C.-based mining exploration company after it made false and misleading statements in records filed with the BCSC and did not meet the disclosure standards for mining companies as required under

Canadian Metals Exploration Ltd. (now Hard Creek Nickel Corp.) entered into a settlement with the BCSC and agreed to pay $20,000. It also agreed that Barry Whelan, the company’s chief operating officer, would not serve as a director of the company, or prepare or securities laws.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. During this time, Stewart Jackson and Whelan were directors of Hard Creek.

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.

At the time, Yvonne Cole was a director and secretary of the company. In a related settlement, Cole admitted that she overlooked the fact that the company was not eligible to distribute securities with the shorter hold period. As a director and officer of Hard Creek, Cole also breached securities laws when she failed to make sure that the company’s disclosure met regulatory requirements. (The BCSC did note that Cole has no formal training in geology, mining engineering or accounting and she worked as an officer administrator.) Cole agreed to pay $2,500 and to pass required training before acting as an officer or director of a public company.

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, Canadian Metals Exploration Ltd. or 2004 BCSECCOM 636 and Yvonne Cole or 2004 BCSECCOM 655. If you have questions, contact Andrew Poon, Media Relations, 604-899-6880.