Update on law suit

In April 2009, our Chairman, Dr Paul A. Taillefer – who was at the time Chairman of the Audit Committee – was told that the Autorité des Marchés Financiers (AMF), the Canadian equivalent of the Security Exchange Commission (SEC), was looking into the share transactions done by the company in relation to some inappropriate transactions done by Manuel Da Silva, a former President relieved of his functions March 28, 2009 for conduct inappropriate for the president of Aquagold International Inc.,

Since Dr Taillefer was convinced that all the transactions made by the company were legal, he asked for an audition by the AMF to clarify the situation. The audition took part on April 16, 2009. Based on the information given by Dr Taillefer the company was cleared of any wrongdoings.

So the company was very surprised to be accused on June 11, 2011 of having been involved in three of the 42 legal proceedings against Manuel Da Silva. The three persons mentioned in the proceedings were unknown to the company.

So immediately our president made his case to the pursuit lawyer and asked for the dismissal of the cases.

We finally got the attention of the AMF and on September 5, 2012, the lawyer in charge of the case officially withdrew the accusations in court explaining that the AMF recognized that they had no proofs against Aquagold International Inc.

“Our company has always strived to operate under the most stringent ethic and will never accept that anybody involved with the company conducts himself in any other way” quoted our president, “we are now cleared to go on with our business”