Winnipeg, Manitoba—The Board of Directors of Crocus Investment Fund today announced they have resigned effective June 29, 2005. The Board made this decision at their regularly scheduled meeting last night and advised the Manitoba Securities Commission (MSC) this morning.

"The Board unanimously agreed this was the best course of action for all parties," said Van Hall, Chairperson of the Crocus Board of Directors. "The new Board and management worked diligently to find a positive solution for shareholders and now this work will be carried on by a Receiver/Manager appointed by the Manitoba Securities Commission. The Receiver/Manager will manage the Fund with the aim of realizing maximum value for shareholders, so in that sense, the potential financial result for shareholders is unchanged."

A key issue for the Board was its ability to secure adequate Director and Officer (D&O) insurance. While the Fund was able to negotiate an extension of the current D&O insurance coverage, and did receive offers for additional coverage, the Board deemed the amount available to be insufficient given the potential future liability. Crocus had requested that the Government of Manitoba consider indemnifying the Board and senior Officers of the Fund and was advised late Thursday that this request was declined.

"The Government gave full consideration to several requests that we made including providing additional indemnification for the Crocus Board and Officers," added Mr. Hall. "They determined it was not an appropriate role for government to undertake and we understand their decision. Government is a shareholder in the Fund and their participation and cooperation will be essential as the Receiver/Manager proceeds with their role."

"I want to personally thank the Board members for their contributions over the past six weeks. They are a strong group of professionals that served the Fund and its shareholders well and they are to be commended. I also want to extend my appreciation to the senior management and all the staff at Crocus for their efforts. They are an equally strong group of professionals and I fully expect the Receiver/Manager will benefit from their experience and knowledge."