¶ 8 Under section 164(1) of the Act, the Executive Director orders that all trading in the securities of CMC cease until:

1. it files a news release and material change report clarifying its disclosure regarding mineral resources and the results of a preliminary assessment on its Silver Hart property,

3. the Executive Director makes an order under section 171 of the Act revoking this order.

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National Instrument 43-101

scheme used for the public disclosure of information relating to mineral properties in Canada. The NI is a strict guideline for how public companies can disclose scientific and technical information about mineral projects on bourses supervised by the Canadian Securities Administrators.

NI 43-101 is a national instrument for the Standards of Disclosure for Mineral Projects within Canada. The Instrument is a codified set of rules and guidelines for reporting and displaying information related to mineral properties owned by, or explored by, companies which report these results on stock exchanges within Canada. This includes foreign-owned mining entities who trade on stock exchanges overseen by the

, even if they only trade on Over The Counter (OTC) derivatives or other instrumented securities.

Most publicly held mineral exploration and mining companies list on the

(TSX).

Disclosures covered by the NI 43-101 code include press releases of

, presentations, oral comments, and websites. The NI 43-101 covers metalliferous, precious metals and solid energy commodites as well as bulk minerals, dimension stone, precious stones and mineral sands commodities.

The National Instrument 43-101 is broadly comparable to the Joint Ore Reserves Committee Code (JORC Code) which regulates the publication of mineral exploration reports on the

within them are put, are often very similar.

] Purpose

Plainly put, the purpose of the National Instrument 43-101 is to ensure that misleading, erroneous or fraudulent information relating to mineral properties is not published and promoted to investors on the stock exchanges overseen by the Canadian Securities Authority.

The NI 43-101 was created after the

scandal to protect investors from unsubstantiated mineral project disclosures.

"The gold reserves at (

]

The promulgation of a codified reporting scheme makes it more difficult for fraud to occur and reassures investors that the projects have been assessed in a scientific and professional manner. However, even properly and professionally investigated mineral deposits are not necessarily economic, nor does the presence of a NI 43-101 or JORC or other attribution necessarily mean that it is a good investment.

Similarly, the publication of a complex technical report with all the inherent

, technical wording and abstract geological, metallurgical and economic information may not actually significantly advantage an investor who is not able to fully nor properly understand the content or importance of this information. In this way the NI 43-101 may not serve the interests of those it is designed to protect— the retail investors who may easily misinterpret such information.

] Comparison with the JORC Code

The National Instrument 43-101 requires substantially more technical disclosure to the market than the equivalent JORC Code, because the JORC Code is primarily a code for reporting the status of a mineral resource, whereas the NI 43-101 is a code of securities disclosure. This distinction is based on the derivation of the two codes: the JORC Code is derived from the Joint Ore Reporting Committee, an independent mineral industry body formed from industry professional associations; The NI 43-101 is a code derived from the Canadian Securities Authorities. The JORC Code, were it equal with the NI 43-101 would be derived from the Australian Securities and Investment Commission, not the relevant industry bodies.

The technical information required in a Reserve declaration under the NI 43-101 exceeds that within the JORC Code, primarily by stipulating that certain geological parameters of the mineral reserve must be presented within a report, published in full, and presented in a particular way. Conversely, JORC Compliant technical reports are not commonly published in full upon the Australian Stock Exchange as this is not required by Australian regulatory authorities. Therefore, often a summary of the key points is published, which can often preserve commercially sensitive information, and often times this could allow deleterious information to remain out of the public forum.