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Suspended CMKM Diamonds Comments, Brings in Robert Maheu, Rumors of Tender Offer (financialwire.net via COMTEX) -- March 7, 2005 (FinancialWire) CMKM DiamondsInc. (OTC: CMKX) commented on the 10-day suspension in the trading of it stockand revealed that it had hired former Robert Maheu, formerly in charge of theHoward Hughes empire when the latter was alive and considered the world'srichest man, to assist the company in its compliance efforts.There is also an unconfirmed rumor that the company, which claims only 2,000shareholders and which observers believe believe may have more than 67,000shareholders holding "nakedly short," or counterfeit shares, could havea cash tender offer possibly engineered by Maheu before the suspension ends.At $0.01, or $350 billion, observers believe such a tender could bankrupt themarket as the 2,000 real shareholders force a buy-in.The company said its temporary suspension will expire on March 16 at 11:59 p.m.EST and trading in CMKX is anticipated to resume on March 17, 2005, adding:In its reasoning, the SEC stated it had concerns over the adequacy of publiclyavailable information concerning CMKX's assets and liabilities, mining and otherbusiness activities, share structure and stock issuances, and corporatemanagement. Further, the SEC was concerned that CMKX may have unjustifiablyrelied on a Form S-8, filed in May 2003, to issue unrestricted securities andthat CMKX and/or certain of its stockholders may have unjustifiably relied onRule 144(k) of the 33 Act in conducting an unlawful distribution of itssecurities that failed to comply with the resale restrictions of Rules 144 and145 of the Securities Act.CMKX has been in discussions with the SEC in relation to the SEC's inquiry intoanother public company that has done business with CMKX. In this process, CMKXhas provided the SEC with substantial documentation, much of which spans back totransactions and stock issuances in 2002. It is believed some of the informationprovided raised concerns with the SEC sufficient enough to cause this temporarysuspension of trading. CMKX anticipates a formal request for documents to beissued by the SEC in the near future."The SEC did not provide us with any notice of the temporary trading halt,"stated Urban Casavant, CEO of CMKX. "This was an unwelcome surprise, especiallysince our counsel has had ongoing dialogue with the SEC."According to the SEC's Web site, www.sec.gov , "The primary mission of the SECis to protect investors and maintain the integrity of the securities markets."Consistent with this mission, Casavant specifically engaged Maheu to assist CMKXin its compliance efforts. "Like the SEC, protecting our investors is a primaryconcern. We have been aggressively gathering the essential information needed tocomply with our public disclosure obligations and anticipate working with theSEC to ensure our compliance with all federal regulations," stated Maheu,co-chairman of CMKX."We are not letting these regulatory matters impede our primary focus ofcreating stockholder value through the mining and development of our mineralassets," stated Maheu. CMKX is continuing to search for additional propertyclaims in Canada and monitor its holdings in Ecuador.On Feb. 17, 2005, CMKX filed an amended Form 15 to reinstate its reportingobligations under the 34 Act. SEC regulations require CMKX to file, within 60days after the date of the filing of the amended Form 15, all reports whichwould have been required had the original Form 15 not been filed. CMKX has notbeen provided a waiver, "variance" or any other relief by the SEC for complyingwith the 60-day requirement. In fact, due to the overwhelming number of reportsthat need to be filed, coupled with the necessary financial statementpreparation, CMKX will not be able to comply with the 60-day requirement.Management does not believe the filing of the amended Form 15 had anything to dowith the SEC's decision to temporarily suspend trading in its common stock andcontinues to aggressively do everything within its power to comply with its 34Act reporting requirements.With its reporting status reinstated, CMKX anticipates filing a number ofsignificant corporate updates with the SEC in the upcoming weeks on Form 8-K.Investors and stockholders are encouraged to review these forms as they becomeavailable through the SEC's EDGAR database.The SEC's Web site further discloses, "The laws and rules that govern thesecurities industry in the United States derive from a simple andstraightforward concept: all investors, whether large institutions or privateindividuals, should have access to certain basic facts about an investment priorto buying it." Casavant reiterated, "We understand the importance of supplyingaccurate information to the public and have made it our top priority touncompromisingly disclose all material corporate information as soon as itbecomes available."Consistent with CMKX's continuing efforts to furnish the investing public andits stockholders with current information and to quell any inaccurate rumors,CMKX has disclosed certain corporate information pertaining to its operationsand corporate structure. Of the 800 billion authorized shares of common stock,CMKX currently has 703,518,875,000 shares of common stock issued and outstandingto approximately 2,032 stockholders of record (excluding shares held in "streetname"). In addition, effective March 1, 2005, CMKX has relocated its executiveoffice address to 5375 Procyon St., Suite 101, Las Vegas, NV. Lastly, CMKX'scurrent officer is Urban Casavant (CEO/President/Secretary/Treasurer) andcurrent directors are Urban Casavant and Robert A. Maheu (Michael Williams willjoin the board of directors upon CMKX's obtainment of D&O insurance).Investors and stockholders are being asked to please refrain from contacting thecompany, the SEC, NASD, the Transfer Agent and/or Stoecklein Law Group to allowthem to focus on completing the tasks at hand. All corporate updates will bemade in press releases and filed in current reports on Form 8-K as they becomeavailable.CMKX also said it would like to repeat the SEC's statement of, "At the heart ofeffective investor protection is an educated and careful investor" and encourageits stockholders and other investors to visit the SEC's Web site, which it saidoffers the public a wealth of educational information.For up-to-the-minute news, features and links click onhttp://www.financialwire.netFinancialWire is an independent, proprietary news service of InvestrendInformation, a division of Investrend Communications, Inc. It is not a pressrelease service and receives no compensation for its news or opinions. Otherdivisions of Investrend, however, provide shareholder empowerment platforms suchas forums, independent research and webcasting. For more information or toreceive the FirstAlert daily summary of news, commentary, research reports,webcasts, events and conference calls, click onhttp://www.investrend.com/contact.aspThe FinancialWire NewsFeed is now available in multiple formats to your site ordesktop, free. Click on: http://www.investrend.com/XmlFeeds?level=268URL: http://www.financialwire.net(C) 2005 financialwire.net, Inc. All rights reserved.
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