Illegal insider trading and late insider trading report - Richard Quesnel fined $132,974

Decisions and Freeze and cease trade orders Securities

Montréal - In a decision handed down on May 6, 2011, Judge Juanita Westmoreland-Traoré of the Court of Québec, district of Montréal, imposed fines totalling $132,974 against Richard Quesnel, former president and CEO of Consolidated Thompson. He had been found guilty on four counts brought against him by the Autorité des marchés financiers (the "AMF").

In November 2010, Richard Quesnel was found guilty of trading, on two occasions in March 2006, in the shares of Consolidated Thompson-Lundmark Gold Mines Limited (now Consolidated Thompson Iron Mines Limited) while holding privileged information, namely, the results of a feasibility study pertaining to the Bloom Lake Iron Ore Deposit project. He was also found guilty of failing to report the trades via SEDI within the 10-day time period required by regulation.

Richard Quesnel intends to file an appeal.

In the same matter, Martial Côté, project manager at an engineering firm at the time of the alleged facts, pleaded guilty to one count of illegal insider trading and was fined $18,000. A third penal proceeding had also been filed in this matter against another engineer, Patrice Live. A decision in this regard has not yet been handed down.

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

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