News Release

Released: 02/07/01 Contact: Dean Pelkey
NR -1-03 (604) 899-6880 or
(BC only) 1-800-373-6393

Vancouver -- Two men who allegedly convinced 11 elderly investors to put more than $148,000 into a mining company have been ordered to appear before a British Columbia Securities Commission panel.

Gordon Dix Jr., Ronald James Henry and Sota Mining Corporation face allegations of trading in securities without being registered; acting as advisers without being registered; distributing securities without filing a prospectus; and making misrepresentations to investors. The two are scheduled to appear before a BCSC panel Friday, Feb. 16 to fix a date for a hearing.

According to promotional material, Sota Mining Corporation acquires and develops undervalued mining properties. Sota is not a reporting issuer in B.C.

Between April 1998 and April 2000, Henry was the sole director and president of Sota Mining while Dix was the company's vice-president investor relations. The BCSC alleges that during this two-year period, Dix and Henry solicited funds by promising investors they would receive a percentage interest in the net profits of the mining corporation.

In several cases, Dix allegedly made contact with investors at their homes while acting as a vacuum cleaner salesman. In at least one instance, Dix allegedly guaranteed an investor a specific amount of return on the investment.

The majority of the investors were between 70 and 86 and live in Victoria, Sidney or Kelowna. None were experienced investors and some placed the majority of their savings in Sota Mining.

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 notice of hearing can be viewed in the documents database of the commission’s website www.bcsc.bc.ca or by contacting Media Relations Officer Dean Pelkey at 899-6880.
Backgrounder

Here is a partial list of the alleged violations of the Securities Act by Ronald James Henry and Gordon Dix. The full notice of hearing can be found at www.bcsc.bc.ca.

2.12 During the Relevant Period Dix did the following:

2.12.1 traded in the securities of Sota with individuals in British Columbia without an exemption from the registration requirements of the Act and without being registered to trade under the Act, contrary to section 34(1)(a) of the Act;

2.12.2 acted as an advisor in British Columbia without an exemption from the registration requirements of the Act and without being registered to advise under the Act, contrary to sections 34(1)(c) of the Act;

2.12.3 attended at the residences of persons in British Columbia for the purpose of trading in a security, contrary to section 49(2) of the Act;

2.12.4 while engaging in investor relations, gave an undertaking related to the future value of the securities of Sota, contrary to section 50(1)(b) of the Act;

2.12.5 while engaging in investor relations, made statements to at least one investor regarding when she would be able to redeem her investment, that he knew or ought reasonably to have known were misrepresentations, contrary to section 50(1)(d) of the Act; and

2.12.6 distributed the securities of Sota in British Columbia without filing and obtaining a receipt for prospectus, and without an applicable exemption from the prospectus requirements of the Act, contrary to section 61(1) of the Act.

2.13 During the Relevant Period Henry did the following:

2.13.1 traded in the securities of Sota with individuals in British Columbia without an exemption from the registration requirements of the Act and without being registered to trade under the Act, contrary to section 34(1)(a) of the Act;

2.13.2 acted as an advisor in British Columbia without an exemption for the registration requirements of the Act and without being registered to advise under the Act, contrary to sections 34(1)(c) of the Act;

2.13.3 while engaging in investor relations, made statements to investors regarding when work would begin on the Lorna Judge Mine project, that he knew or ought reasonably to have known were misrepresentations, contrary to section 50(1)(d) of the Act; and

2.13.4 distributed the securities of Sota in British Columbia without filing and obtaining a receipt for prospectus, and without an applicable exemption from the registration and prospectus requirements of the Act, contrary to section 61(1) of the Act.