Hodgins Auctioneers Inc. - Trading Resumes



    MELFORT, SK, March 6 /CNW/ - Hodgins Auctioneers Inc.
(HA-TSX-V)(www.hodginsauctioneers.com) (the "Corporation") a provider of
professional auction services for clients across North America wishes to
advise that trading in the common shares of the Corporation will resume on
March 6, 2008. Trading was halted on December 14, 2007 by the TSX Venture
Exchange Inc. ("TSXV" or the "Exchange") for failure to comply with Exchange
Requirements. The Exchange took the position that the Corporation had failed
to comply with the terms of July, 2004 Undertakings completed by the Board of
Directors and Grant Hodgins restricting the involvement of Mr. Hodgins in the
affairs of the Corporation.
    The Exchange sought: (a) an explanation by the Corporation as to why
Mr. Grant Hodgins' electronic signature appeared on the commercial copy of the
balance sheet dated as at December 31, 2006 which formed part of the audited
financial statements filed on SEDAR (www.sedar.com) when Mr. Hodgins was not a
director of the Corporation; (b) an explanation by the Corporation as to why
Mr. Hodgins was nominated to be a director of the Corporation in the
Information Circular filed by management prior to the December 20, 2006 Annual
General Meeting of Shareholders ("December 20 AGM") without TSXV prior
approval or an appropriate disclosure of the limitations on Mr. Hodgins
becoming a director; and (c) an explanation by the Corporation relating to
public disclosure documents filed on SEDAR which might suggest that
Mr. Hodgins was a director of the Corporation.

    Undertakings granted by the Corporation and Mr. Hodgins

    On July 27, 2004, Mr. Hodgins and Mr. Jung were owners of a private
company which completed a reverse takeover of a TSXV Capital Pool Company
called Innoventures International Inc. ("Innoventures"). In response to
concerns with respect to the suitability of Mr. Hodgins becoming a director of
Innoventures (now the Corporation), the TSXV imposed as a condition of the
approval of the reverse takeover that Mr. Hodgins and the Corporation provide
the following undertakings to the TSXV: (a) Mr. Hodgins was to be the General
Manager of the resulting entity (an employee) with defined roles and
responsibilities as set out in his employment agreement; (b) Mr. Hodgins was
not to be appointed as an officer of the Corporation without prior approval of
the TSXV; (c) Mr. Hodgins was not to be elected or appointed as a director of
the Corporation without the prior approval of the TSXV; and (d) Mr. Hodgins
was not to act as a de facto director of the Corporation. On July 27, 2004, it
was expected that Mr. Hodgins would be approved by the TSXV to become a
director of the Corporation at some point in time. In the event that publicly
filed documents suggest anything to the contrary, or are confusing, the
Corporation wishes to clarify the public record. Mr. Hodgins' has not been
elected or appointed as a director. Mr. Hodgins has not been appointed as an
officer.

    Balance Sheet - December 31, 2006 Financial Statements

    Grant Hodgins' electronic signature appeared on the commercial copy of
the balance sheet dated as at December 31, 2006 which was filed on SEDAR on
April 30, 2007. Mr. Hodgins did not sign the original balance sheet. On
April 26, 2007, the directors of the Corporation were: Gordon D. Anderson,
David Willis Farrell and Barrie Jung. Grant Hodgins was not a director. The
auditor of the Corporation made an error by inserting Mr. Hodgins' electronic
signature in the pdf copy of the draft statements which were presented for
review and approval by the audit committee and the board of directors on
April 26, 2007. The error was pointed out to the auditor on April 26, 2007 by
Mr. Hodgins, the audit committee and the board of directors. The audit
committee and the board of directors of the Corporation approved the financial
statements as presented, subject to the condition that the error was corrected
prior to filing the financial statements on SEDAR. The auditor did not correct
the error. The failure to correct the error was not detected by legal counsel
who caused the financial statements to be filed on SEDAR on April 30, 2007
without the directors of the Corporation being aware that the error had not
been corrected.

    December 20 AGM - Nomination of Mr. Hodgins

    Mr. Hodgins was disclosed as a nominee to be a director in the
Information Circular dated November 25, 2006. At the December 20 AGM, the
meeting was advised that Mr. Hodgins could not be elected or appointed as a
director because of certain undertaking given by the Corporation and
Mr. Hodgins prior to July 27, 2004. At the December 20 AGM, the shareholders
passed a resolution to permit four directors to be elected or appointed. Only
three directors were elected: Mr. Anderson, Mr. Farrell and Mr. Jung. The
fourth position was left vacant. It was contemplated that Mr. Hodgins would
apply to the TSXV for approval to be appointed as a director. After careful
consideration of the events, the Corporation should have asked permission from
the TSXV prior to permitting Mr. Hodgins name to be put forth as a nominee or
the Corporation should have disclosed in the Information Circular that Mr.
Hodgins was not a director at the time of the Information Circular and that
his election or appointment was restricted by the undertaking given to the
TSXV in July 2004. Further, the Corporation should have issued a press release
after the meeting to advise the public that Mr. Hodgins had not been elected
to the board of directors and the reasons why he was not elected. Taken in
conjunction with the electronic signature of Mr. Hodgins on the December 31,
2006 balance sheet filed on SEDAR on April 30, 2007, the public might have
been confused as to the status of Mr. Hodgins.

    Two Signatures on Each Cheque

    In the course of the review, it was determined that the Corporation was
only in partial compliance with TSXV Policy 3.1(16.9) which requires that all
Corporation cheques be signed by two authorized signatories.
    The Corporation maintains two bank accounts: a trust account and a
general account. Two signatures were required for the trust account. Two
signatures were required for general account cheques in excess of $50,000. The
Corporation has changed the corporate banking authorizations to provide that
all general account cheques regardless of amount must be signed by two
parties. There were no financial irregularities in any bank account for the
period in review.

    About Hodgins Auctioneers Inc.

    Headquartered in Melfort, Saskatchewan, for nearly 50 years, the
Corporation has provided professional auction services for clients across
North America and consistently ranks in the top 100 biggest companies in the
Province. The Corporation is renowned for its experienced auctioneers,
award-winning promotions and dependable results, resulting in a database of
nearly 100,000 motivated and qualified buyers from across Canada and the
United States.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this Release.

    %SEDAR: 00016723E




For further information:

For further information: about Hodgins Auctioneers Inc. (TSX-V: HA),
visit our website at www.hodginsauctioneers.com or contact: On behalf of the
Board: Barrie Jung, President & Chief Executive Officer, Tel: 1-800-667-2075,
Fax: (306) 752-5702, barrie@hodginsauctioneers.com

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Hodgins Auctioneers Inc.

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