Do we have sufficient grounds for a counter suit, either by us ( shareholders ) or the company.........claiming damages caused by the Dunlop's...... cloud of uncertainty.


The claim seeks to compel the Directors of the Company to give up VMS' 30 per cent participating, carried to production, interest and to elect to become a non-participating party to the Reed Lake Joint Venture in order to trigger certain alleged royalty entitlements, largely benefiting Dunlop at the expense of all other VMS shareholders.

The Company views this claim to be completely without merit and acquiescing to the Dunlop demand to be not in the best interest of the Company and its shareholders. The Board of Directors has instructed VMS' Manitoba litigation counsel to vigorously defend same.