John S. and Christobel D. Rendall - Page 12

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          respective court pursuant to a cross-border insolvency protocol             
          agreement.                                                                  
               On October 24, 1997, Mr. Rendall filed a proof of claim in             
          the Canadian bankruptcy, which included his unsecured claim for             
          the $2 million loan.  That claim was disallowed, whereupon, on              
          December 1, 1997, he filed a motion objecting to the claim                  
          disallowance in which he contested the bankruptcy court’s                   
          treatment of the $2 million loan as a debenture rather than as an           
          unsecured claim.  Ultimately, on September 9, 1998, in                      
          satisfaction of his $2 million claim (plus accrued interest) in             
          the U.S. bankruptcy, Mr. Rendall received 5,728,767 shares of new           
          common stock of Solv-Ex.  The number of shares was determined               
          under a formula applicable to certain convertible debenture                 
          holders that was set forth in the Second Amended Plan of                    
          Reorganization for Solv-Ex, dated June 23, 1998 (the plan of                
          reorganization), and was based upon the closing bid price per               
          share on the date immediately preceding the date of conversion,             
          which turned out to be 50 cents a share.                                    
               During the course of the joint bankruptcies, Solv-Ex sold              
          its interest in the leases and its oil production facilities and            
          equipment in Canada to two separate buyers:  (1) A 78-percent               
          interest to Koch Exploration Canada, Ltd. (Koch), in exchange for           
          Can$30 million, with Koch also receiving warrants (exercisable              
          for a limited time) to purchase 2 million shares of Solv-Ex                 






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