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Gold/Mining/Energy : Fairmile Gold

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To: Steve Stakiw who wrote (3810)	1/7/1999 11:12:00 PM
From: Douglas Simpson	Read Replies (1) of 4057

Steve The Company's previous auditor's PriceWaterhouseCoopers (PWC) resigned November 2, 1998 without prior notice or any apparent reason in the midst of the annual audit resulting in the Company's shares being cease traded by the ASE for failure to file the Financial Statements on time. The Company is concerned with the impact in the investment community and on its shareholders - as well as the regulatory authorities - with the action taken by PWC. The Company's board has referred the matter to legal counsel and will take whatever action is deemed appropriate in the circumstances Steve Could you elabourate on the above. 1. What kind of action is deemed appropriate? 2. What does FLA hope to gain by doing this action? 3. If FLA wins what would it mean to the company? 4. How does it translate into shareholder value? 5. When will we know the actual details to this situation? Also 6. Could you or Tom Kelly comment on the share value of 4 cents knowing that there are a large portion of shareholders who have been loyal to FLA for 3 years and have purchased at the plus 2 dollar value? 4 cents hurts big time. Ouch. Ouch. OUch. Thanks in advance Doug

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