News Release

Released: July 23, 1998  Contact: Michael Bernard  899-6524 or (BC only) 1-800-373-6393

VANCOUVER – The British Columbia Securities Commission has ruled that a junior company managed by four Vancouver executives violated several disclosure requirements under the Securities Act while it was purportedly being developed to offer “green solutions” to the pulp and paper industry.

The Commission found that the company, Simon Fraser Resources Ltd., distributed securities under a Statement of Material Facts that did not contain full, true and plain disclosure, failed to disclose material changes in its affairs, failed to keep proper records of its financial transactions and failed to comply with various policies of the Vancouver Stock Exchange.

The Commission has ordered that Mark Burgert and Jeff Thachuk, who were managing the company when many of the violations occurred between February 1990 and May 1991, be prohibited from acting as directors and officers of any reporting issuers for three years.

The order also requires that before they can serve as directors or officers again they must take a course on the duties of those positions. A similar order for a one year period was made against two other Simon Fraser directors, Karl Burgert and Michael Thachuk.

The group took a company listed on the Vancouver Stock Exchange and used it to fund a business that would provide the pulp and paper industry with green solutions to environmental problems.

However, Mark Burgert and Jeff Thachuk, who were university students at the time, had no experience in running a public company and the company soon ran afoul of various disclosure requirements.

The commission panel also ruled that Simon Fraser, which has been under a cease trading order since 1991, cannot resume trading until it files a prospectus containing full, true and plain disclosure of its affairs.

The British Columbia Securities Commission is a provincial government agency responsible for regulating trading in securities and exchange contracts. Copies of the decision (52 pages) are available on request.