The Vancouver Stock Exchange (VSE) announces that it has received approval from the British Columbia Securities Commission (BCSC) to implement two new initiatives to improve B.C. market competitiveness and to enhance the securities industry's contribution to the economic development of B.C.

Effective July 1, 1998:

• Venture Capital Pool Program
• Transfer of the Responsibility for Reviewing IPO’s from the BCSC to the VSE

Venture Capital Pool Program

The Venture Capital Pool (VCP) program provides an alternative to the standard process of raising seed capital privately before an Initial Public Offering (IPO). This program provides companies in the early stage of their development an alternative way to raise capital from the public market. VCP’s allow seasoned management groups with a positive track record to create a financial vehicle to raise capital for business projects. The VCP Policy can be accessed by visiting the VSE Web site at www.vse.ca.

Among the features of the VCP program are:

• Full one-year Member firm sponsorship rules apply at the qualifying transaction stage
• A management group forms a company and contributes a minimum of $100,000
• The company undertakes a VCP/IPO on the Exchange raising between $200,000 and $500,000
• Following the VCP/IPO, the company has a pool of $300,000 to $700,000 identify and investigate business opportunities suitable for a full listing on the Exchange
• No restriction on location of business or property to be acquired
• Companies have 18 months to complete the Qualifying Transaction
• Non-arm’s length Qualifying Transaction not permitted in first six months
• Corporate Finance – Service Standard = 25 Days Processing Time

Review of IPO’s

The VSE will assume responsibility from the BCSC for reviewing IPO’s under BCSC standards. The BCSC will review on a sample basis to confirm the quality of such reviews.

• Corporate Finance – Service Standard = 90 Days Processing Time

These new initiatives will be of particular interest to our junior mining exploration and technology sectors.