News Release

Vancouver - The British Columbia Securities Commission has permanently cease-traded a U.S. man from trading securities in B.C. after he admitted to trading stock in a criminal scheme through a Vancouver-based broker.

Under a settlement agreement reached with the BCSC, Derrick W. Cleveland - a former stock trader in Oklahoma City, OK, USA - cannot buy or sell any securities in B.C. He can never act as a director or officer of any issuer and he is permanently barred from engaging in any investor relations activities in B.C.Cleveland may never apply for registration to trade securities in B.C.

On July 17, 2002, Cleveland pleaded guilty in the U.S. District Court for the Eastern District of New York to conspiracy to enter into a racketeering enterprise that involved securities fraud. He admitted that:

• from around February 2000 to May 2002, he was involved in a conspiracy with Amr Elgindy, Jeffrey Royer and others to use information from confidential law enforcement and other sources for the purpose of financial gain (Elgindy is a U.S. resident convicted of racketeering, securities fraud and extortion. Royer is a former U.S. Federal Bureau of Investigation agent who was tried and convicted with Elgindy for racketeering conspiracy, securities fraud and obstruction of justice.);
• the information was used to trade stock and extort stock from companies for less than market value; and
• his role in the criminal enterprise included seeking information, passing it on and trading stocks based on the information.

Cleveland traded some of the stock through brokerage accounts at Global Securities Corporation in Vancouver.

The B.C. Securities Commission is the 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, Derrick W. Cleveland or 2006 BCSECCOM 372. If you have questions, contact Andrew Poon, Media Relations, 604-899-6880.