Alberta Court of Appeal upholds ASC decisions and dismisses appeal by Flag Resources, Golden Briar Mines and Murdo McLeod

CALGARY, April 15 /CNW/ - The Alberta Court of Appeal today released reasons for its decision to dismiss an appeal by Calgary-based Flag Resources (1985) Limited, Golden Briar Mines Limited and their president, Murdo Campbell McLeod, relating to Alberta Securities Commission (ASC) decisions of March and June 2010.  The Court of Appeal upheld ASC findings that the two companies and McLeod were liable for continuous disclosure deficiencies extending over a number of years.

The Court of Appeal dismissed all of the appellants' grounds of appeal, including an argument that an ASC investigator was biased and should not have testified at the hearing. In commenting on the responsibility of McLeod for financial disclosure deficiencies, the Court of Appeal cited problems in the audit procedures of Flag Resources and Golden Briar and stated that the management signatures on financial statements "are not decorative."

McLeod continues to be subject to an ASC order that permanently prohibits him from acting as an officer or director of any reporting issuer. The order also bans any trading in the securities of Flag Resources or Golden Briar until such time as the Executive Director of the ASC issues a receipt for a prospectus in respect of the securities of the respective company. The Court of Appeal described these restrictions that the ASC applied to the appellants as "very reasonable."

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.

SOURCE Alberta Securities Commission

For further information:

For Media Inquiries:  Lorinda Brinton
Senior Advisor, Investor Education
For Investor Inquiries:  ASC Public Inquiries
Toll Free 1.877.355.4488


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