Choice Resources Corp.

Choice Resources Corp.

May 24, 2005 17:34 ET

Choice Resources Corp.: Change of Auditors

CALGARY, ALBERTA--(CCNMatthews - May 24, 2005) - Choice Resources Corp. (TSX VENTURE:CZE), of Calgary, Alberta, announces that BDO Dunwoody LLP, Chartered Accountants, of Calgary, Alberta, have been appointed as the successor auditor of the Corporation, and will be auditing Choice's financial statements for its year ended February 28, 2005. Collins Barrow, Chartered Accountants, of Calgary, Alberta, the former auditor of the Corporation, have resigned due to a possible issue as to its independence. The Audit Committee and the Board of Directors of Choice have approved the change of auditor.

In the fall of 2004, a subsidiary of Collins Barrow (CB Securities) was retained by another company to assist in the sale of an interest in an oil and gas property held by that other company. Choice, which held a minority, non-operator interest in the property, decided to participate in the sale process and also retained the Collins Barrow subsidiary. Collins Barrow and the Audit Committee of Choice discussed the retainer at the time and concluded that, in the circumstances, the retainer would not adversely affect the independence of Collins Barrow as auditor. The Canadian Public Accountability Board (CPAB), in the course of an inspection of Collins Barrow, have suggested that the retainer may impair the independence of Collins Barrow for the audit of Choice's financial statements for the year ended February 28, 2005 on the basis that the services of CB Securities "appear to be similar" to corporate financial services. A final determination of this issue by CPAB is not expected in the near term. Accordingly, given the short notice period between now and when the year end results are due, Collins Barrow resigned to permit Choice to appoint a new auditor and proceed with the audit of its year-end financial statements in a timely fashion.

Collins Barrow have indicated in their resignation letter that there are no reportable events as defined in National Instrument 51-102 - Continuous Disclosure Obligations.


Gordon D. Harris
President & Director

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