George Sharp

December 05, 2006 14:00 ET

Former Safe Environment Engineering, Canada, Inc. President Announces Civil Action Brought Against Golden Arch Resources, Limited

LOS ANGELES, CA--(CCNMatthews - December 05, 2006) - Former Safe Environment Engineering, Canada, Inc. President George Sharp announced today that he has filed a civil action for Breach of Contract and Fraud and has named Golden Arch Resources, Limited (TSX-V: GAI), its President Les Kjosness and Rod Blake, an account manager in the Vancouver office of Canaccord Capital Corp., as defendants. Mr. Sharp's action was filed in the Los Angeles County Division of California Superior Court (Docket No. BC362855) and is expected to be served upon the defendants imminently.

In his complaint, Sharp alleges that the defendants deceived him in order to relieve Safe Environment Engineering, Canada, Inc. (SEECAN), a delisted Vancouver entity, of its mineral properties, including the Abbott-Wagner and Red Elephant claims. The defendants recruited Sharp from California to become a Director and President of SEECAN, expressing a desire to return the company into compliance with securities regulations. At the time, both Kjosness and Blake were significant stockholders in both SEECAN and GOLDEN ARCH and Blake, in his capacity as an account manager, had a large portion if not a majority of SEECAN's stock in his client's accounts. Sharp alleges that he was promised autonomy and whatever financial support necessary to meet the goals. On December 3, 2003, under Kjosness' and Blake's urging, SEECAN's Board of Directors named Sharp a Director and President by majority vote and Kjosness and Blake began to write personal checks to SEECAN to cover operational expenses.

As President, Sharp brought successful legal action against SEECAN's former President, in order to retrieve the Company's records and properties. GOLDEN ARCH then negotiated the mineral property rights, held by SEECAN in exchange for some cash. Once the Letter of Intent was signed, all financial support for Sharp's efforts ceased.

The Complaint accuses the defendants of making false representations to Sharp in order to induce him to accept the position of President and enable the defendants to maneuver the properties away from SEECAN. Sharp alleges that Kjosness and Blake never had any intention of reviving SEECAN as a significant business and that his hire was only to be used as a pawn in the scheme.

The Complaint goes on to allege that in order to prevent any reconsideration of the sale of the mineral properties, Kjosness and Blake hastily convened a shareholder meeting at which time a new slate of Directors, which included Les Kjosness, was elected. The acquisition has since been finalized and SEECAN has been struck from the Alberta Registry of Corporations.

Sharp commented, "I feel like a fool for having been duped into turning over these mineral rights, whose potential value was misrepresented to me by Kjosness and Blake. I trusted Kjosness and Blake as business associates and incorrectly believed that they were acting in the best interests of SEECAN."

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