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Note: In response to a motion for a preservation order and an interlocutory mandatory injunction by Roy Meade (Plaintiff) who apparently held options for the issuance of four million common shares of stock, the Ontario Superior Court of Justice, Cumming, J., ordered that Nelson Resources Ltd. (Defendant) either issue the stock to be held in escrow or provide an LC.

The order indicated that the LC was to be in the amount of US$8,595,080, be delivered to the Accountant of the Superior Court of Ontario, be irrevocable, be issued by a bank "listed on Schedule I of the Bank Act (Canada), and remain valid until further order of the court."

Furthermore, the order required that the LC name Plaintiff as beneficiary, and that it be payable upon presentation to the issuing bank of either a court order to Defendant or Defendant's successors in interest or a consent to payment by the same. The issuing bank was required to automatically extend the LC for increments of one year, unless it gave notice to Beneficiary of its intent not to extend the LC ninety days or more before the expiration. The court notes that the issuance of this LC will not prejudice Plaintiff's right and ability to claim entitlement to the specific performance of stock issuance by Defendant.

As security for Defendant, the court also ordered that Plaintiff deposit CAN$135,000 to cover the costs and damages associated with the issuance of the above LC. It indicated that Plaintiff may choose instead to apply for an LC for that amount, subject to the same conditions as the LC above with the positions of Plaintiff and Defendant reversed.

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