John S. and Christobel D. Rendall - Page 16

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          making of false and misleading statements regarding the company’s           
          operations.9                                                                
          Litigation Involving Solv-Ex                                                
               In October, November, and December 1996, Solv-Ex, Mr.                  
          Rendall, and other officers of Solv-Ex were made defendants in              
          class action suits brought by Solv-Ex shareholders alleging false           
          and misleading statements relating to Solv-Ex in violation of               
          both Federal and New Mexico securities laws.  The claims alleged            
          in those lawsuits were recognized as claims in the joint                    
          bankruptcies, or the action was stayed by reason of the chapter             
          11 bankruptcy.  In the amended disclosure statement, Solv-Ex                
          expressed its intent “to vigorously defend the actions filed                
          against it”, and it stated its belief that those actions were               
          “without merit”.                                                            
               On August 9, 1996, Solv-Ex sued certain individuals and                
          entities in the U.S. District Court for the Southern District of            
          New York, seeking damages in excess of $12 million for actions              
          intended to further the defendants’ short selling schemes.  The             
          suit was dismissed without prejudice because of the bankruptcy              
          proceedings.  In the amended disclosure statement, Solv-Ex stated           
          its intent to refile the suit following its discharge from                  
          bankruptcy.  In October and December 1998, Solv-Ex brought suits            


               9  The SEC did commence such an action in Federal District             
          Court on July 20, 1998.                                                     




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