November 11, 2003

CANADIAN SECURITIES ADMINISTRATORS STAFF NOTICE 51-307
STATUS OF PROPOSED CONTINUOUS DISCLOSURE RULE
IMPACT ON 2004 FINANCIAL REPORTING

As a service to CNQ Issuers and their advisors, CNQ will periodically publish details of initiatives by other regulators that may affect quoted companies. Please note that CNQ cannot provide advice on these initiatives or undertake to update these notices; questions should be directed to the contacts listed at the end of the notice or to professional advisors.

On November 7, 2003, the CSA issued a status notice on the proposed amendments to continuous disclosure obligations for public companies other than investment funds (National Instrument 51-102) that was published for comment on June 23, 2003.

The text of the notice is available here: www.osc.gov.on.ca

The text of the proposed amendments is available here.

The notice indicates that the CSA are currently considering the public comment on NI 51-102 and incorporating changes as appropriate. No changes are expected to the filing deadlines as published in the June, 2003 version of NI 51-102.

Expected application of Amended NI 51-102

Subject to receiving all necessary commission and ministerial approvals, CSA staff anticipate the amended NI 51-102 requirements for

• financial statements, management discussion and analysis (MD&A) and annual information forms will apply for financial years beginning on or after January 1, 2004; as a result, the first interim financial statements and MD&A that will be required to comply with the requirements of NI 51-102, including the new filing deadlines for non-venture issuers, will be for first quarters ending on or after March 31, 2004;
  
• proxy solicitation and information circulars will apply as of June 1, 2004; and
  
• business acquisition reports will apply for significant acquisitions if the initial legally binding agreement was entered into on or after March 30, 2004.

Questions

The CSA notice states that questions may be addressed to any of the following people:

British Columbia Securities Commission
Rosann Youck, Senior Legal Counsel (604) 899-6656
Carla-Marie Hait, Chief Accountant (604) 899-6726
Michael Moretto, Associate Chief Accountant (604) 899-6767
You may also call 1-800-373-6393 from B.C. and Alberta.

Alberta Securities Commission
Mavis Legg, Manager, Securities Analysis (403) 297-2663
Karen Wiwchar, Senior Legal Counsel (403) 297-4732

Manitoba Securities Commission
Bob Bouchard, Director, Corporate Finance (204) 945-2555

Nova Scotia Securities Commission
Bill Slattery, Deputy Director, Corporate Finance and Administration (902) 424-7355

Ontario Securities Commission
Joanne Peters, Senior Legal Counsel (416) 593-8134
Irene Tsatsos, Senior Accountant (416) 593-8223

Commission des valeurs mobili�res du Qu�bec
Rosetta Gagliardi, Conseill�re en r�glementation (514) 940-2199 ext. 4554

Saskatchewan Financial Services Commission -- Securities Division
Ian McIntosh, Deputy Director, Corporate Finance (306) 787-5867