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Gold/Mining/Energy : YBM Magnex Intl Sees Revenue Growth 30-35%/Yr In MagnetOp -- Ignore unavailable to you. Want to Upgrade?

To: Mr Metals who wrote (236)	8/12/1998 1:28:00 PM
From: Adrian du Plessis	Read Replies (2) \| Respond to of 314

YBM MAGNEX DIRECTORS INTERVIEWED BY RCMP Canadian force helps FBI; asked 'very simple questions,' official says Paul Waldie The Globe and Mail Wednesday August 12, 1998 The RCMP has interviewed Canadian directors of YBM Magnex International Inc., and is helping the FBI in its investigation of the company." "Oh, heavens yes," YBM director Kenneth Davies said yesterday when asked if he had been interviewed recently by the Royal Canadian Mounted Police. "Don't be surprised, because it's not like a big deal," added Mr. Davies, who lives in White Rock, B.C. "In fact they wouldn't be doing their job if they didn't ask. They just asked very, very simple questions. I said anything you want you can ask. I have no problem whatsoever." Mr. Davies, 56, said he was told that other YBM directors have been interviewed by the RCMP as well. YBM has two other Canadian directors -- Owen Mitchell, a vice-president at Toronto-based First Marathon Securities Ltd., and Michael Schmidt, a Burnaby, B.C., realtor. Former Ontario premier David Peterson resigned as a director this week. None were available for comment and YBM officials did not return phone calls yesterday. Officials in the RCMP's commercial crime unit in Vancouver confirmed that a file on YBM has been opened, and that the force is helping the FBI. YBM is based in Pennsylvania, but trades on the Toronto Stock Exchange. Trading in its shares has been halted since May, when the FBI raided the company's head office in connection with a criminal investigation. The company has denied any wrongdoing. YBM's auditor, Deloitte & Touche, quit last spring after refusing to sign the company's 1997 financial statement. YBM, which makes industrial magnets at plants in Hungary and the United States, was formed by a business that has links to Simeon Mogilevitch, an alleged Russian mob figure. Mr. Davies played down the FBI raid. "It is normal. Because any foreign company that comes into the U.S. that is from the Eastern bloc, I assure you that the FBI, the XYZ and everybody else and their dog is standing at the door taking a look and seeing what's happening. We have been investigated since Day One." Mr. Davies added that Mr. Mogilevitch has nothing to do with YBM's operations and that the Russian mafia stories unfairly taint the company. "I wouldn't even know how to get a hold of the Russian mafia." He said Mr. Peterson told the board last month that he wanted to resign. "I think he had too many things on his plate," Mr. Davies said. "I think when you are under a lot of pressure and that, you say 'Look boys, I got too many things on my plate, I just don't have the stress level to handle all this,' because there is a lot of stress in this." Mr. Davies has been a director since YBM was formed in 1994. He said no other directors have said they want to resign. He added that the board has done its best to address the concerns raised by Deloitte & Touche. However, the company is having great difficulty finding a new auditor. "It's hard work because there are not that many auditors that are in a position to work around the world," he said. This week, Igor Fisherman, the chief operating officer who was also responsible for Eastern European operations, agreed to a suspension pending a further review by the company. In June, YBM said Mr. Fisherman and others engaged in "significant breaches in corporate policy and common business prudence." Mr. Davies praised Mr. Fisherman but added that he had to step down pending the review. "He has done the appropriate thing and he did it willingly." Mr. Davies said all businesses encounter problems.

To: Mr Metals who wrote (236)	8/17/1998 8:05:00 PM
From: Adrian du Plessis	Read Replies (1) \| Respond to of 314

IN THE MATTER OF YBM MAGNEX INTERNATIONAL TORONTO, Aug. 17 /CNW/ - The Ontario Securities Commission announced today that the hearing scheduled to proceed on August 19, 1998 in connection with YBM Magnex International Inc. has, on consent, been adjourned sine die, not to be brought back on by YBM unless and until YBM has filed with the Commission audited financial statements. On May 28, 1998 the Commission issued an order that the Temporary Cease Trading Order respecting securities of YBM, issued by the Commission on May 13, 1998, continue until the hearing is concluded. IN THE MATTER OF THE SECURITIES ACT, R.S.O. 1990, c. S.5, as amended AND YBM MAGNEX INTERNATIONAL INC. ORDER WHEREAS on May 13, 1998, the Ontario Securities Commission (the ''Commission'') issued a temporary order (the ''Temporary Cease Trading Order'') pursuant to Sections 127(1) and (5) of the Securities Act R.S.O. 1990 c. S. 5 , as amended (the ''Act'') ordering that trading in any securities of YBM Magnex International Inc. (''YBM'') immediately cease for a period of fifteen days from the date of the Temporary Cease Trading Order, unless extended by order of the Commission; AND WHEREAS on May 26, 1998, the Commission issued a Notice of Hearing and related Statement of Allegations of Staff in connection with the Temporary Cease Trading Order, giving notice that the Commission will hold a hearing (the ''YBM Hearing'') pursuant to Section 127 of the Act at its offices on the 8th Floor, 20 Queen Street West, Toronto, Ontario commencing on May 28, 1998 at 9:30 a.m. or so soon thereafter as the hearing can be held; AND WHEREAS on May 28, 1998, the Commission issued an order, pursuant to Section 127(7) of the Act, that the Temporary Cease Trading Order be extended and that trading in any securities of YBM continue to cease until the YBM Hearing is concluded, and the Commission further ordered that the YBM Hearing is adjourned to June 12, 1998; AND WHEREAS on June 12, 1998, the Commission announced that the YBM Hearing will proceed on August 10, 1998; AND WHEREAS on August 6, 1998 the Commission ordered, on consent, that the YBM Hearing be adjourned to August 19, 1998; AND WHEREAS upon being advised that Staff and counsel for YBM consent to an order by the Commission to adjourn sine die the YBM Hearing, not to be brought back on by YBM unless and until YBM has filed with the Commission audited financial statements; IT IS HEREBY ORDERED that the YBM Hearing is adjourned sine die not to be brought back on by YBM unless and until YBM has filed with the Commission audited financial statements. DATED at Toronto this 17th day of August, 1998 -------------------------- (signed) -30- For further information: Reference: Dan Iggers, Secretary to the Commission, (416) 593-8212