Securities Decisions and Freeze and cease trade orders

Montréal – The Autorité des marchés financiers (the "AMF") has launched penal proceedings against Prospector Network Inc. and Claude Duhamel in the Court of Québec, district Montréal, and is seeking fines totaling $456,000 for 76 violations of the Securities Act.

The AMF alleges that Prospector Network Inc. and Claude Duhamel acted as securities dealers without being registered with the AMF (19 counts each). They are also each charged with 19 counts for aiding Prospector International Networks Inc. with illegal distributions in the form of a franchise agreement with Prospector for their Mail it Safe solution with a limited recourse promissory note.

The AMF is seeking fines two times the minimum amount set out in the Act. It cites the following aggravating factors: the abuse of financial markets and the fact that these violations took place over a four-year period.

The losses suffered by investors have not been determined.

The Autorité des marchés financiers (the "AMF") is the regulatory and oversight body for Québec's financial sector.

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