**NEWS RELEASE**
Review of 1997 audit of financial reports
Riosun Resources Corp RSR
Shares issued 9,420,325 Jun 5 close $0.50
Mon 8 Jun 98 News Release
Mr. P. Charles Cochrane reports
The company has confirmed, through the review of the 1997 audit of its
financial reports, that certain use of corporate funds by its former
managing director in Madagascar, Dror Moradov, may have been
inappropriately or fraudulently used for purposes unknown at this time.
The company has attempted to account for or recover these funds without any
response to its inquiries by Mr. Moradov, and accordingly the company has
started civil proceedings and criminal investigations in Madagascar, in an
attempt to answer these allegations.
After discussions with the company's auditors, Deloitte & Touche, it has
been decided that the amount of $371,000 (U.S.) will be written off for
this period, and future adjustments may be taken in the event of recovery
or proper expensing.
The company has secured, through its subsidiary company Export Import
Madagascar SARL Eximad, 16 concessions for the exploration and development
of gold in the districts of Daraina and Betsiaka, Northern Madagascar.
Certain of these concessions are directly next to previous geological work
performed by the company's senior geologist during 1997.
The new properties, encompassing 100 square kilometres will be reviewed by
the company's geological team, and preparation will be started for an
exploration program during the second half of 1998.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
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