Calgary, Alberta, Canada, May 8, 1997
ÿNEWS RELEASE
Vol.: 97 No: 24
BRE-X MINERALS LTD., BRESEA RESOURCES LTD., and BRO-X MINERALS LTD., members
of the BRE-X Minerals Group of Companies announced today that the they have
sought and received court protection under the Companies Creditors
Arrangement Act and the Alberta and Canadian Business Corporation Acts. The
Order received this morning from the Alberta Court of Queen's Bench appoints
Price Waterhouse Limited as monitor of the assets and records of the three
corporations. David Walsh, Chairman, President & CEO stated: "the purpose of
this step was two-fold. Firstly, with the resignation of two outside
directors announced yesterday from the respective Boards, we felt it was
important that shareholders and creditors of Bre-X, Bresea, and Bro-X derive
some confidence from the fact that the assets of the various companies will
remain intact.
Secondly, this provides the basis for a mechanism by which the various claims
being advanced against the companies can be dealt with in an orderly way."
The role of Price Waterhouse Limited as monitor is separate and distinct from
the ongoing investigation being conducted by Price Waterhouse Chartered
Accountants and Forensic Investigative Associates Inc., who were retained by
Bre-X's solicitors to investigate any fraud that may have been committed
against Bre-X and its shareholders and to ensure the copying, safeguarding
and analysis of all relevant Bre-X records. That investigation is continuing
and the companies are continuing to cooperate with those investigations and
the investigation being undertaken by the RCMP which was instigated by Bre-X management.
In an unrelated matter, Bre-X also announced that in response to a request
from the companies John Felderhof has resigned from the Boards of Directors
of each of Bre-X, Bro-X and Bresea, and is no longer in their employ
effective immediately.
A full text of the court order is expected to be posted on the Bre-X website
at www.bre-x.com
-30-
On Behalf of the Board
David G. Walsh
Chairman, President & Chief Executive Officer
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Bre-X Investor Relations
Email: info@bre-x.com
Web: www.bre-x.com
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