November 30, 1998 REGISTER YOUR PROTEST
Press Releases
If you don't like the way your rights are being trampled on by Kermeen, Naldrett and Robins why don't you make contact and tell them?
These three directors, with little or no interest in the company, are busily degrading the stock price, and therefore your asset. In short, they have hijacked the company for their own ends.
Since they grabbed control on November 3 you have seen the stock price decline from 85 cents to current levels. Naldrett may have a high profile but he is irrelevant to the success of the program, which has been under the control of another geologist ever since Don Hoult took the direction out of Naldrett's hands.
If you object to what is going on you can contact the directors on the following fax and email addresses:-
Jim Kermeen (604) 684-4601 (fax)
Tony Naldrett (416) 865-1389 (fax)
Email: ajn@quartz.geology.utoronto.ca
John Robins (604) 331-2266 (fax)
Email: John_Robins@bc.sympatico.ca
November 18, 1998: Mr. Hoult's rebuttal to the Board Announcement of November 16, 1998 regarding his dismissal as CEO & President
November 16, 1998: The Board of Directors of Anzex Resources Ltd. (the Company) has with regret elected to remove Mr. Donovan R. Hoult as President and Chief Executive Officer of the Company
November 3 1998: Release made by the other 3 directors.
Anzex Intersects Platinum / Palladium Bearing Zones
November 2, 1998: Original release made by Don Hoult, the then CEO and President of the company.
Anzex Resources Ltd has completed the initial three-holes of its 12 hole diamond drilling program at its Longwoods platinum project, New Zealand
Vancouver, BC, November 16, 1998: The Board of Directors of Anzex Resources Ltd. (the Company) has with regret elected to remove Mr. Donovan R. Hoult as President and Chief Executive Officer of the Company and as his replacement the Board is pleased to announce the appointment of Board member Mr. James S. Kermeen as interim President and CEO.
Mr. Kermeen is a geological engineer whose long career in the mining industry has involved senior positions in virtually every phase of mineral exploration and mining. Over the past 12 years, he has held top executive positions in mining companies listed on both the Toronto and Vancouver Stock Exchanges.
The Board wishes to emphasize that its dissatisfaction with previous management does not in any way diminish its enthusiasm for the Company's Longwoods platinum/palladium exploration project located in New Zealand. New management is committed to the aggressive and professional exploration and development of this project. Full use will be made of the technical expertise of Consultant and Director Dr. Anthony Naldrett who is an internationally renowned expert on the geology of platinum deposits.
The investor relations policy of the new management is to provide shareholders and potential investors with more frequent comprehensive updates through timely news releases, letters to shareholders, the continued availability of Todd McMurray VP, Corporate Development and ready access to senior management.
The new management has initiated an in depth review of the Company's recent affairs including recent developments on the Longwoods property and the completed program on the Mosquito Hill gold copper project in Australia. On completion of this review management will report further to shareholders.
Due to the seriousness of the management change and the proximity of the Annual General Meeting in December, 1998 the Board feels obliged to comment on the reasons for its decision. Among many other factors, Mr Hoult repeatedly acted in opposition to the advice and instructions of the majority members of the Board. He withheld material information pertaining to the company's activities from the Board, and opposed a visit to the property by Dr. Naldrett during a critical stage of the projects exploration. He attempted to disseminate a news release against the expressed wishes of the three other members of the Board after he had been advised by the Company's chief geological consultant that it presented an inaccurate picture of the geology.
Pacific International Securities Inc. is the sponsor of Anzex Resources Ltd. as required by the rules of the Vancouver Stock Exchange. In a letter dated November 3, 1998 Pacific International expressed concerns regarding the Company's corporate governance. Mr Hoult's response to this letter made it abundantly clear to the Board that the sponsors concerns would not be alleviated under his management. Withdrawal of sponsor could have jeopardised the Company's listing on the Vancouver Stock Exchange.
Prior to removing Mr. Hoult from the position as President and CEO the Board proposed that he resign as CEO and assume a non-executive role with the Company. A number of alternative roles were suggested, none of which were acceptable to Mr. Hoult.
The Board will nominate it's slate of directors for election at the upcoming Annual General Meeting. The Board has been advised by Mr. Hoult that he will be submitting an opposing slate of candidates for the Board. Dr. Naldrett has stated unequivocally that his consulting services will not be available to the project under such an alternative slate.
The Board does not believe that the election of Mr. Hoult's slate will be in the best interests of the shareholders or conducive to the ongoing success of the Company and its value in the market place. The Board therefore urges all shareholders to familiarise themselves with the management issue and ensure that their vote is registered in person or by proxy at the Annual General Meeting.
ON BEHALF OF THE BOARD OF DIRECTORS
ANZEX RESOURCES LTD
James S. Kermeen For More Information Contact;
President Todd McMurray
VP Corporate Development
Tel: 1 604 684 6671
Toll Free: 1 888 989 3232 (North America)
Fax: 1 604 684 6643
No stock exchange has reviewed or approved the content of this news release
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November 18, 1998 Brisbane Australia
Mr. Hoult's rebuttal to the Board Announcement
of November 16, 1998
regarding his dismissal as CEO & President
I have been removed as CEO and President. However, I intend to reinstate my position in the immediate future.
It is true that I was repeatedly in opposition to the other board members, but when you have read this you can make your own assessment of the true position without the distortion and fabrications outlined in the directors statement of November 16.
The facts speak for themselves:
<Picture>I directly and indirectly control in excess of 4 million shares in the company. <Picture>I have never sold a share and have at all times had the interests of the company and its stockholders foremost.
Just ask yourselves the question:
"Would Mr. Hoult set out to destroy the very company he created and in which he has such a strategic interest?"
And now let me turn to the other board members, the three people responsible for my dismissal – Jim Kermeen, Tony Naldrett and John Robins.
Jim Kermeen is the new President and holds himself out to be concerned about the company. Why then did Mr. Kermeen dump his Anzex stock at prices well above current levels?
Similarly, Mr. Robins is long gone as a stockholder. Obviously, Mr. Robins has no other consideration than his own personal gain.
Mr. Robins also has a glaring conflict of interest in that he is a director of a company that applied for the exploration rights to all the ground surrounding the Longwoods project in New Zealand. Mr. Robins never disclosed that fact to the Anzex board and when confronted with it refused to acknowledge a conflict of interest or to resign from one or the other company!
Yes, these two gentlemen certainly have your interests at heart, don't they??
And let's move on to Professor Tony Naldrett, an acknowledged authority on the genesis of platinum deposits worldwide.
I would point out that Naldrett is a retired university academic and scientist of high repute. However, he is not an exploration geologist and to my knowledge has never been solely responsible for the conduct of an exploration program.
Naldrett accepted an appointment to the board of Anzex and insisted he assume control of the Longwoods exploration program. He spent time in NZ looking at the Longwoods and discussing and approving the exploration program put forward by the then field geologist in charge of the program. The computer designed drilling program was duly commenced with Naldrett's approval and general overall control.
I visited the Longwoods during the drilling of DDH1 and noted the hole was being drilled 180 degrees to its planned direction – that is in the opposite direction to the one intended.
At that time, I took the decision to override Naldrett and threw out the computer program on which the drill holes were being modeled. I instructed the field geologist to return to a conventional geology program.
Naldrett visited the Longwoods on completion of DDH1 and severely criticised my actions in a communication to the other board members.
I then returned to NZ and dismissed the project geologist. At that stage DDH2 was already well underway. My actions have since been vindicated as both DDH1 and DDH2 have proven to be invalid holes.
I appointed Philip Ford, a highly experienced geologist with particular expertise in the geology of NZ, to redesign the program.
Naldrett subsequently admitted at a board meeting in Vancouver on 17 August, 1998 that the previous project geologist I had dismissed was an "unmitigated disaster."
In view of the fact that he, Naldrett, was overall director of the program I made it very clear that he should include himself in the same classification. I did not consider the waste of $450,000 of shareholders funds was a matter to be taken lightly nor blamed on the dismissed geologist. Naldrett had after all, insisted on being in charge of the program.
Ford shut down the program until he was able to generate valid geological and geophysical data. He sited DDH3, the hole which has proven beyond doubt the Longwoods does host stratiform platiniferous horizons.
This is the result that could have been achieved in DDH1 if the program had been under competent guidance and control.
Ford sited DDH4, which is presently drilling ahead at 260 metres.
Naldrett has not visited the Longwoods since the completion of DDH1 nor has he made any contribution whatsoever to the siting of DDH3 and DDH4. The claim that I have opposed his visits to the Longwoods is erroneous. However, I have made it clear I think his visits are irrelevant to the success of the program.
The whole board, including Naldrett, have expressed their complete confidence in Ford and the direction of the program under his control.
It has been claimed I withheld information from the board and therefore shareholders. Once again let's look at the facts. Anzex commenced drilling DDH1 in May. The company made news releases on June 8, July 7, and August 24. It should be noted the board made the decision to only make a comprehensive announcement at the termination of the initial three-hole program. This decision was never challenged at any board meeting.
At a board meeting on August 17 Naldrett insisted he move back into overall control by chairing a "technical committee." He was to report directly to the board and therefore to stockholders. I was very vocal in my opposition, but for the sake of harmony, finally agreed to his demand.
It is interesting to note that Naldrett did not make a single report to the board from that date until November 3 – nearly thee months. And that news release was only forthcoming after I had attempted to make an announcement to shareholders dated November 2.
The opposing board members blocked my release and called a halt to trading prior to Naldrett's release of November 3. Their argument was stockholders would be more impressed with Naldrett's name on the release. The stock in fact, went down.
Naldrett has stated his consulting services will not be available should I remove the directors opposing me. I really have no comment to make on that other than to refer stockholders to Naldrett's description of the previous project geologist as being an "unmitigated disaster."
I originally insisted Naldrett inspect the Longwoods before accepting a board position. I was only interested in his technical, rather than promotional attributes. He confirmed the Longwoods geology had the potential to contain a major platinum discovery – a prediction he was eminently qualified to make.
It soon became clear to me following his assumption of the role of exploration director that he was stepping outside his sphere of expertise and into one of management. Naldrett had confirmed the Longwoods potential. That was his sole brief.
I have already advised Naldrett that in view of his performance to date he should remove himself from the board immediately. Naldrett already totally defers to Ford as the more informed geologist on the Longwoods. Why does the company need a $1000 per day consultant to confirm what Ford is already telling the directors and Naldrett is totally in agreement with?
How can Kermeen and Robins pretend to represent the stockholders and express concern when they have already dumped their stock and therefore dumped you as stockholders?
Which brings me to the totally false and misleading statement the opposing board members attribute to Pacific International Securities – the company's sponsoring brokers.
PI has never stated nor have they ever indicated they would withdraw sponsorship if the company was to remain under my overall direction as CEO or President.
PI has indeed expressed concern and wants to see the current conflict resolved. They hold the interests of the company and its stockholders paramount.
The Longwoods program is probably the most important new platinum province anywhere in the world today. Whether it proves to be commercial remains to be seen. However, Phil Ford has verified the geological model long indicated by a succession of companies and geologists, but never proven until now.
It is of vital importance that Anzex direct its entire attention to the Longwoods and I intend to ensure that direction does not waiver.
I will remove Naldrett, Kermeen and Robins at either the Annual General Meeting that is set down for December 21 or at an Extraordinary General Meeting which I will call if any attempt is made to delay the AGM.
The opposing directors are on notice that in the face of overwhelming numerical opposition --- and support for my stand is also derived from a number of Vancouver and Toronto brokers who have clients heavily invested in the company – I will take whatever action to recover damages personally against each of Naldrett, Kermeen and Robins on behalf of the company.
Naldrett acknowledges my position through my stockholding is unassailable. Why is he putting the company to the expense of fighting me? Has it anything to do with fees both he and Kermeen will be demanding, and possible "golden handshakes" they will derive for themselves in the interim?
I think stockholders and the sponsoring brokers have every reason to be concerned.
D.R.Hoult
Director
No stock exchange has reviewed or approved the content of this news release
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Anzex Intersects Platinum/Palladium Bearing Zones
Vancouver, BC, November 3 1998: Anzex Resources Ltd. has completed the
initial three holes of its 12-hole diamond drilling program at its Longwoods platinum project in New Zealand.
Results confirm that the Longwoods complex is a platinum / palladium bearing layered mafic intrusion in an Island Arc setting, with many features in common with other platinum bearing complexes such as the Bushveld and Stillwater complexes. The next phase of drilling has commenced and will further test the emerging model, and ultimately the prospectivity of the area.
The program to date has confirmed the existence of distinctly anomalous platinum / palladium bearing zones, the best intersection being 2 metres of 0.81 gpt Pt/Pd including 1 metre of 1.05 gpt Pt/Pd in DDH3. The apparent correlation of this intersection with a linear surface geochemical soil anomaly, and similarly orientated magnetic anomalies indicates that the Longwoods appears to contain statigraphic horizons enriched in platinum/palladium. Multiple platinum horizons are a feature of platinum-bearing layered complexes such as the Bushveld (Merensky and UG2 horizons), Stillwater (J-M Reef) and Great Dyke (Main Sulfide Zone). The company believes that it has demonstrated the potential of the Longwoods to contain a large platinum deposit.
Significant Pt/Pd values are as follows (analyses in brackets are duplicate assays)
Hole Metres Core Pt Pd Pt+Pd
No. From To Length g/tonne g/tonne g/tonne
DDH3 264.90 265.90 1.00 0.118(0.102) 0.185(0.190) 0.298
265.90 266.90 1.00 0.165(0.160) 0.350(0.380) 0.528
266.90 267.90 1.00 0.048(0.052) 0.125(0.155) 0.190
or 264.90 267.90 3.00 0.339
286.10 287.10 1.00 0.540(0.500) 0.480(0.580) 1.050
287.10 288.10 1.00 0.280(0.210) 0.320(0.340) 0.570
or 286.10 288.10 2.00 0.810
302.90 303.90 1.00 0.116(0.102) 0.094(0.108) 0.210
The mineralisation intersected in this hole is associated with lithologies which comprise alternating bands of troctolite, melatroctolite, anorthosite and olivine gabbro. Some of the troctolites show large irregular (amoeboidal) olivine crystals reminiscent of those in the J-M Reef of the Stillwater complex. The mineralisation is not associated with visible sulfides or other distinctive minerals, and is only detectable by assaying.
DDH4 has been initiated a short distance along strike from DDH3 to test lateral continuity in lithology and grade. DDH4 will test the stratigraphy beyond the level reached by DDH3, which was noted to have terminated in rising PGE background levels.
DDH1 and 2, completed to 623 and 865 metres respectively, were initiated to give insight into Longwoods stratigraphy and mineralogy. Although the holes failed to intersect significant platinum/palladium mineralisation the holes did intersect stratigraphic sulfide layers. Similar sulfide layers are a feature of the upper parts of platiniferous layered complexes, such as the Upper and Middle Banded Zones of the Stillwater and Upper Zone of the Bushveld complex.
In addition to drilling, an extensive 18 kilometre soil sampling program has been initiated which, in conjunction with rock sampling, air-photo interpretation and detailed aeromagnetic data evaluation, will produce the first detailed structural and stratigraphic map of the complex.
Aeromagnetic interpretation, in conjunction with field work suggests an average of 4 to 6 kilometres of stratigraphic thickness and a strike length in the order of 15-25 kilometres. Previous stream sediment sampling undertaken by other companies shows the PGE anomaly extends over 25 kilometres.
The program is under the direction of Anzex geological consultant/Director Professor Naldrett. Professor Naldrett will visit the project to thoroughly evaluate the first phase of drilling on receipt of results from DDH4 which is currently being drilled.
Anzex Resources Ltd.
Dr. Anthony J. Naldrett
James S. Kermeen For More Information Contact;
John Robins Todd McMurray
Directors, V.P. Corporate Development
Tel: 888 989 3232
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November 2, 1998
THE FOLLOWING IS AN ANNOUNCEMENT SUPPRESSED BY THE BOARD OF ANZEX RESOURCES DUE TO THE FACT IT WAS NOT ISSUED UNDER THE NAME OF PROFESSOR TONY NALDRETT.
THE RELEASE WAS MADE BY DON HOULT, THE THEN PRESIDENT AND CEO OF ANZEX RESOURCES ON NOVEMBER 2, REGARDING RESULTS OF THE DRILLING OF DDH3 AT THE LONGWOODS.
THIS ANNOUNCEMENT WAS REMOVED, AND TRADING OF ANZEX HALTED ON THE VANCOUVER STOCK EXCHANGE BECAUSE PROFESSOR NALDRETT OBJECTED THAT THE RELEASE HAD NOT BEEN MADE UNDER HIS NAME. THE RELEASE WAS REPLACED WITH THE ABOVE RELEASE BEARING NALDRETT'S SIGNATURE.
THE SUPPRESSED RELEASE WAS IN FACT WRITTEN BY PHILIP FORD, THE MANAGING PROJECT GEOLOGIST AT THE LONGWOODS,
FORD IS EMINENTLY QUALIFIED TO COMMENT ON THE GEOLOGY OF THE LONGWOODS. HE HAS BEEN WITH THE PROGRAM SINCE ITS INCEPTION WHEREAS NALDRETT HAS SPENT A TOTAL OF FIVE DAYS ON SITE.
NEWS RELEASE Vancouver Stock Exchange Symbol… AZX
New Zealand
Longwoods platinum
Anzex Resources Ltd has completed the initial three-holes of its 12 hole diamond drilling program at its Longwoods platinum project, New Zealand.
Results have been highly significant suggesting strong similarities with the Stillwater Complex, Montana. The next phase of diamond drilling (hole DDH4) has commenced and will further test the emerging model and prospectivity of the area.
The program to date has confirmed the existence of platinum bearing horizons – the best intersection being one metre in excess of 1 gram per tonne combined platinum/palladium in hole DDH3. The intersection was in fact part of a two metre band averaging just under the 1 gram level.
The technical success of the intersection highlights the fact the Longwoods does contain the critical stratigraphic platinum enriched horizons vital for a world-ranking platinum exploration target and discovery.
The intersection was one of a number of platinum horizons recorded in the 510 metre hole. Assays subsequently demonstrated the hole was in fact terminated in rising background platinum group element (pge) levels. It is not possible through visual inspection of the core to determine the degree of mineralisation or potential prospectivity of intersected rock units during the course of drilling – a common feature of platinum exploration. This can only be determined by assays which lag about a month behind drilling.
It is now apparent DDH3 did not fully traverse the pge-bearing zone of interest.
Multiple platinum horizons are a feature of platinum-bearing layered complexes. The mining widths in the South African Bushveldt ( Merensky and UG2 horizons) , Stillwater (J-M Reef) and Zimbabwe's Great Dyke (Main Sulfide Zone) are of the order of 1-2 metres and the company believes it has confirmed the potential of the Longwoods to contain a large platinum discovery.
DDH1 and DDH2 completed to 623 and 865 metres respectively, were initiated to give an insight into Longwoods Complex stratigraphy and mineralogy, due to the uncertainties of mineralogy and structure, poor outcrop and limited exploration of the Longwoods by previous exploration companies. DDH1 and DDH2, effectively stratigraphic holes, showed the existence of stratigraphic sulphide horizons, some of these producing low-order platinum/palladium anomalies. Such sulphide horizons are a feature of Stillwater stratigraphy in the upper and middle banded zones of that Complex.
Following further detailed assessment of geophysical data , DDH3 was sited on a new structure some distance to the south-west of DDH2. DDH1 had been positioned on a magnetic high to test the association between magnetite and pge mineralisation.
Bearing in mind variations in grade and continuity on the JM Reef (Stillwater), DDH4 has been sited a short distance along strike (100 metres) to test grade and continuity of hole DDH3 stratigraphy. Variations in grade and continuity at Stillwater are due to both primary irregularities (depositional) and post-depositional faulting – features almost certainly present in the Longwoods.
DDH3 and DDH4 are both in proximity to the 6.6 grams per tonne combined platinum/palladium surface rock-chip sample previously reported by Cowden et al 1990.
In addition to drilling, an extensive (18 kilometre) soil sampling program has been initiated which , in conjunction with rock sampling, air-photo interpretation, and detailed aeromagnetic data evaluation, will produce the first detailed structural and stratigraphic map of the Longwoods Complex.
A project of the magnitude and potential of the Longwoods presents a major exploration challenge. However, the similarities in structure, rock-type and mineralogy to the Stillwater Complex geology are becoming increasingly obvious.
Aero-magnetic interpretation in conjunction with field-work suggests on average 4 to 6 kilometres stratigraphic thickness (Stillwater 4.5 kilometres above ultramafic series) in the Longwoods Complex. Strike length of the Longwoods proper is in the order of 15 kilometres with a further 10 kilometres or more possible. Stream sediment sampling undertaken by previous exploration companies shows the pge anomaly exists over 25 kilometres. The Longwoods is therefore a thick laterally extensive complex comparable in size to the exposed portions of the Stillwater complex.
Platinum group anomalies associated with stratigraphic sulphide horizons in the Stillwater appear to be similar order anomalies to those of the Longwoods DDH3, excepting the JM Reef (Stillwater) and proximal high order anomalies. DDH3 likewise shows very similar lithologies to Stillwater troctolite/anorthosite zones, one of which hosts the economic JM reef. DDH3 lithologies include -- plagioclase, plagioclase > olivine, olivine > plagioclase, olivine, plagioclase/pyroxene, and plagioclase pyroxene/olivine in alternating lithological bands. Sub-unit members are commonly of the order 0.1 to 5 metres true width whilst broader units are commonly tens of metres in width.
A break-down of the Stillwater troctolite/anorthosite zone 1 (JM Reef territory) shows alternations of the same lithologies that are seen in DDH3 of the Longwoods. It must be noted that at Stillwater at least four troctolite/anorthosite zones exist along with one broader zone of olivine-bearing lithologies.
A few comparable anomalies to the 1.1 grams per tonne of DDH3 are found within the Banded Series of the Stillwater Complex above the JM Reef. Grades (on average) increase towards the JM Reef .
DDH4 at the Longwoods will test stratigraphy below the level reached by DDH3, which as mentioned above, was noted to have terminated in rising pge background levels when assay data was received.
Further testing of stratigraphy to the west of DDH3 may be required, along with drilling of anomalies generated by soil sampling and other ongoing research.
AUSTRALIA
Mosquito Hill
Exploration of this gold project has been terminated following the failure of two 300 metre diamond drill holes to intersect strong conductivity targets suggested by previous Induced Polarisation surveys.
Anzex had planned a six hole program but terminated it when intersections of up to 30% sulphides as proposed from the IP interpretation and computer modelling were not realised. Pyrite occurred throughout the holes but rarely exceeded 5%.
The drilling confirmed the previously identified structures of flat-lying volcaniclastic breccia sheets but the best assay received from the latest drilling was 2 metres at 1.5 grams gold per tonne.
The balance of the Mosquito Hill budget will now be applied to the Longwoods program.
On behalf of the Board of Directors
Anzex Resources Ltd
Don Hoult
President
(No stock exchange has reviewed or approved the content of this news release)
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North America Office
Australia & New Zealand
Suite 200 - 827 West Pender StreetP.O. Box 1691Vancouver, B.C., V6C 3G8, CanadaToowong, Qld, 4006, AustraliaPhone: (604) 684-6671Phone: (617) 3871-2678North America Toll Free - 888 989 3232Fax: (617) 3871-2679Fax: (604) 684-6643E-Mail: hoult@anzexresources.com
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