Xianburg Data Systems Canada Corporation
TSX VENTURE : XDS

June 17, 2011 12:26 ET

Xianburg Data Systems Announces Resignation of Auditor

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 17, 2011) - Xianburg Data Systems Canada Corporation (TSX VENTURE:XDS) (the "Company") announces that Thompson Penner & Lo LLP (formerly Lo Porter Hetu) (the "Former Auditor") has notified the Company that it has resigned as auditor of the Company and all of its subsidiary companies, effective May 10, 2011.

The Former Auditor resigned of its own initiative and has advised that they felt limitations had been imposed on the scope of their audit that required them to withdraw from the engagement.

Between November 25, 2010 and May 10, 2011, the Former Auditor did not report on any financial statements of the Company. The audit report of the Former Auditor on the financial statements of Xianburg International Data Co., Ltd. ("XID"), the operating entity through which the Company operates its business, for the fiscal years ended December 31, 2009 and December 31, 2008, which the Company is entitled to consolidate, did not contain any reservation.

In the opinion of the Company, there were no reportable events (being any disagreements, unresolved issues or consultations) in connection with the audits of the Company's financial statements for the years ended December 31, 2009 and December 31, 2008. However, subsequent thereto and prior to the resignation of the Former Auditor, a situation arose whereby the Former Auditor felt that limitations had been placed on the scope of its audit. As a result of these limitations, the Former Auditor felt it was necessary to resign prior to completion of its audit of the consolidated financial statements of the Company for the year-ended December 31, 2010, leaving these matters unresolved to the satisfaction of the Former Auditor before their resignation.

Additional information with respect to the resignation of the Former Auditor is available in the change of auditor reporting package available under the Company's profile on SEDAR at www.sedar.com.

About Xianburg Data Systems Canada Corporation

The Company, through its wholly-owned subsidiary Xianburg Data Systems (Canada) Inc., governs and administers the operating entity Xianburg International Data Group Co., Ltd. ("XID"), a Chinese based operating company, and will earn substantially all of its income from XID. XID is an IT products and services firm with offices in Xi'an and Beijing and it is recognized as a leader in China in providing mass data storage and disaster recovery IT solutions. XID's core business is data entry with a specialty of converting paper documents to electronic format (digitization) and it also manufactures high-performance, high-capacity storage systems for the archiving and publication of such documents.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Xianburg Data Systems Canada Corporation
    Farhan Rhemtulla
    Director of Investor Relations
    604-781-3693