Canadian Shells

[Tackler]

KDC Kakanda puts brakes on Congo project; board changes

2004-06-04 13:45 ET - News Release

Mr. Steve Smith reports

CORPORATE UPDATE

Kakanda Development Corp. has decided not to proceed with development of the company's Kakanda copper-cobalt tailings project in the Democratic Republic of the Congo. (DRC).

Despite the fact that conditions in the DRC have been by and large improving, intermittent conflict continues in parts of the country. Infrastructure vital to mine operation requires considerable reconstruction and it will take time to guarantee that improvements in the DRC will be sustainable.

The company will continue to monitor developments in the DRC in line with view to possibly re-enter the country, as the DRC policies for sustainable, accountable development of the country's mineral resources evolve.

Gilbert Mundela and John Tyson have resigned as directors of the company. The company thanked Mr. Mundela and Mr. Tyson for their contributions and efforts and wished them well.