News Release

The British Columbia Securities Commission today released its decision in the matter of Prime Resources Corporation, Calpine Resources Inc., Murray Pezim, John Ivany and Lawrence Page.

The Commission ordered the removal of trading rights of Messrs. Pezim, Page and Ivany for a period of one year, beginning January 1, 1991, and ordered that Messrs. Pezim, Page and Ivany pay two thirds of the costs of the hearing incurred by the Commission and the Superintendent of Brokers.

The Commission held that Messrs. Pezim, Page and Ivany were responsible for the fact that Prime and Calpine committed a series of contraventions of disclosure requirements and misled the Vancouver Stock Exchange on several occasions.

The Commission described Messrs. Pezim, Page and Ivany as highly experienced and knowledgeable participants in the market and said that there was no reasonable explanation for their failure to ensure that Prime and Calpine complied with regulatory requirements. The shares of Prime and Calpine were the two most actively traded listings on the Vancouver Stock Exchange in 1989.

The Commission stated that "It is damaging to public confidence in the integrity of the securities market and prejudicial to the public interest when such significant market participants contravene basic and fundamental rules."

Today's decision was based upon the Commission's findings, which were released on November 16, 1990, following six weeks of hearings in July, August and September. The hearing was reconvened on December 3 for submissions with respect to the terms of orders.

The key findings, as released on November 16, were as follows:

1.		Prime and Calpine failed to make disclosure of drilling results on Calpine's Eskay Creek property that were material changes in the affairs of Prime and Calpine before they granted or repriced options in July and August 1989.
2.		Calpine failed to disclose, on a timely basis, the fact that Prime was the purchaser of a two million unit private placement announced by Calpine in July 1989. Calpine also misled the Vancouver Stock Exchange by falsely representing that the private placement was to be brokered by Prime Equities.
3.		Prime failed to make timely disclosure of a default by Canarim Investment Corporation (now L.O.M. Western Securities Ltd.), under a guaranteed agency agreement, in respect of one million units of a five million unit public offering by Prime in September 1989.

Copies of the Commission's decision (10 pages) may be obtained in person at 1100 - 865 Hornby Street, Vancouver, British Columbia.