Spector & Roseman, P.C. Announces Class Action Suit Filed Against Golden Rule Resources, Inc. and Related Persons Alleging Federal Securities Law Violations

Business Wire, Feb 23, 1998

PHILADELPHIA--(BUSINESS WIRE)--Feb. 23, 1998--A securities class action has been commenced in the United States District Court for the Eastern District of Pennsylvania on behalf of those who purchased the common stock of Golden Rule Resources, Ltd. ("Golden Rule") during the period Oct. 3, 1996 through May 14, 1997 ("Class Period").

Golden Rule, directly and through its subsidiaries which it owns and/or controls, is engaged in the exploration and development of precious metal properties in the United States, Canada, Venezuela, and Ghana, West Africa.

The Company operates exploration programs for its own account and on behalf of its joint venture partners, its subsidiaries, affiliates and other clients on a contractual and consulting basis.

The Complaint alleges that during the Class Period, Golden Rule, its senior executives, and the senior executives of related parties, violated Sections 10 (b) and 20 (a) of the Securities Exchange Act of 1934 by issuing materially false and misleading statements relating to Golden Rule's business operations.

Specifically, the Complaint alleges in substance that the defendants misrepresented both the quantity and quality of gold finds in Golden Rule's mining operations in Ghana, which were conducted through the Company's Hixon Gold Resources, Inc. subsidiary.

The Complaint further alleges that the defendants made and caused these materially false and misleading statements to be made in order to artificially inflate Golden Rule's stock price so that Company insiders could sell their shares of Company stock at artificially inflated prices.

The Complaint further alleges that, when the truth concerning the results of mining operations was revealed at the close of the Class Period on May 15, 1997, the market price of Golden Rule's common stock, which had traded as high as over $13 per share during the Class Period, plunged to under $3 per share at the close of the Class Period on May 20, 1997, and currently trades at approximately $0.75 per share.

The plaintiff seeks to recover damages on behalf of all purchasers of Golden Rule common stock during the Class Period (the "Class"). He is represented by the law firm, Spector & Roseman, P.C., who have expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Spector & Roseman, P.C., located in Philadelphia, and San Diego, Calif., concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims.

The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws.

As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered on behalf of thousands of defrauded shareholders and companies. Visit the firm's website at http://www.spectorandroseman.com.

If you are a member of the Class described above, you may, no later than 60 days from today, move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffs' counsel, Robert M. Roseman or Anthony J. Bolognese, collect, at 215/864-2400 or via e-mail at spro@voicenet.com SOURCE Spector & Roseman.

CONTACT: Spector & Roseman, P.C.

Robert M. Roseman or Anthony J. Bolognese, 215/864-2400

e-mail at spro@voicenet.com SOURCE