WINNIPEG, Manitoba—The Board of Directors of Crocus Investment Fund today received formal "Notice of Hearing" and "Statement of Allegations of Staff of the Manitoba Securities Commission (MSC)". The substance of these reports was communicated to representatives of the Crocus Board of Directors in a briefing meeting on Monday, April 4, 2005. At that meeting the MSC clarified the basis for each of the various allegations.

Principal among these clarifications is that these allegations concerning failure to follow signing procedures in setting the fair weekly value of the Fund was not an indication by the MSC that Crocus had sold or redeemed shares at an inaccurate price. A further outcome of the briefing meeting was a commitment by the MSC to work collaboratively with Crocus to resolve the allegations and achieve a settlement that is in the best interest of Crocus shareholders as the Fund moves forward.

"It is clear from the report and briefing meeting that the allegations are primarily related to procedural issues and the assessment by the MSC that the Crocus Board should have voluntarily ceased trading as early as November 19, 2004 rather than December 10, 2004," said Alfred Black, Interim CEO at Crocus. "Crocus believes it can address these issues in a timely manner in collaboration with the MSC."

In response to each of the allegations, Crocus and the Directors named in the report will file a formal reply in the coming weeks. This reply is anticipated to lead to a settlement with the MSC, consistent with preliminary discussions that have been undertaken to date.

The Crocus Board also advised that it received a briefing today from Deloitte and Touche LLP, which included a number of recommendations for changes in governance and operational procedures. The Deloitte report is one of several initiatives undertaken by the Crocus Board of Directors associated with their decision to voluntarily cease trading on December 10, 2004.

Added Mr. Black, "It is important to acknowledge that the Board initiated an organizational review in December in response to shortcomings it identified with respect to the Fund's procedures and governance. The Board received a verbal update from Deloitte today and looks forward to receiving the formal report in the coming days. Recommendations in the final report will provide a sound basis for achieving a settlement with the MSC."