ASC Issues Trading Ban Against CMKM Diamonds

    CALGARY, May 16 /CNW/ - The Alberta Securities Commission (ASC) has
banned trading in or purchasing of securities of CMKM Diamonds, Inc. and
denied the company the use of any Alberta securities laws exemptions
indefinitely until otherwise ordered by the ASC. An ASC panel issued the
reciprocal order after determining CMKM, a Texas corporation, traded its
shares to Alberta investors without complying with Alberta securities laws.
    The order reciprocates orders previously issued by the Saskatchewan
Financial Services Commission, Securities Division (SFSC), and the Manitoba
Securities Commission (MSC). On November 9, 2004, the SFSC issued an order
banning trading and the use of exemptions by CMKM until further ordered by the
SFSC. The SFSC referred to indications that CMKM:

    -  traded in securities without registration, a prospectus, or evidence
       of registration and prospectus exemptions; and
    -  made misrepresentations with the intention of effecting trades.

    On October 31, 2007, the MSC issued a reciprocal order based on the SFSC
order. Both the SFSC and the MSC orders remain in effect.
    A copy of the ASC decision in its entirety is available on the ASC
website at www.albertasecurities.com.

    The ASC is the regulatory agency responsible for administering the
province's securities laws. It is entrusted to foster a fair and efficient
capital market in Alberta and to protect investors. As a member of the
Canadian Securities Administrators, the ASC works to improve, coordinate and
harmonize the regulation of Canada's capital markets.

For further information: For Media Inquiries: Mark Dickey, Senior
Communications Advisor, (403) 297-4481; For Investor Inquiries: ASC Public
Inquiries, Toll Free, 1-877-355-4488