News Release

Released: May 5, 1997  Contact: Barbara Barry 660-4800 or (BC only) 1-800-373-6393

Vancouver -- The British Columbia Securities has imposed a $50,000 fine on Bruce Russell Foerster, a former securities salesperson with Vantage Securities Inc. The Commission also prohibited Foerster from trading securities, from being a director or officer of a company and from engaging in investor relations activities for fifteen years.

The Commission decision was issued on May 2, 1997, following a hearing held in December 1996.

Between 1992 and 1994, Foerster recommended that his clients purchase a number of highly speculative securities. These securities included limited partnership units and direct participation units issued by affiliates of Maxwell Resources Inc., as well as common shares of Maxwell Energy Corp. Each of these issuers was involved in the oil and gas industry. The other securities were shares in Columbia Fishing Resort Group, a venture capital corporation established to invest in a company planning to develop a fishing resort in British Columbia's Hakai Passage, and shares in Jungle Sea Ltd., Foerster's own company, which planned to develop eco-tourism resorts in Belize.

Twelve of Foerster's former clients testified at the hearing. Many were either retired or close to retirement. Of their aggregate net worth of approximately $5.5 million (slightly over 50 percent of which was the equity in their homes), they invested a total of $1,170,000 in these highly speculative securities. All twelve were conservative, risk- averse investors. All were relying on Foerster to act in their best interests and to protect them from risk beyond the level with which they were comfortable. In fact, Foerster misled them about the risks associated with these securities. Foerster also failed to provide them with the disclosure documents required under the Securities Act, such as offering memoranda and prospectuses.

The Commission made the following findings:

1. Foerster breached the "know your client" rule, the cardinal rule for every salesperson registered under the Securities Act, by recommending that his clients purchase securities that were not suitable for them in view of their investment needs and objectives.

2. Foerster failed to disclose to his clients material negative factors associated with the investments, such as risks and illiquidity. By failing to advise his clients fully, honestly and in good faith about the investments, he breached his fiduciary duty to them.

3. Foerster failed to distribute copies of offering memoranda to his clients.

4. Foerster told his clients that the shares of Maxwell Energy would be listed on The Toronto Stock Exchange and that the shares would increase in value, contrary to the Securities Act.

5. Foerster distributed shares of Jungle Sea without a prospectus, contrary to the Securities Act.

The Commission said:

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

The 26 page decision will soon be available on the Commission's website (www.bcsc.bc.ca). It may also be obtained in person at 1100 - 865 Hornby Street, Vancouver, British Columbia.