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IMPACT OF COURT OF APPEALS DECISION ON VERONEX

 VANCOUVER, British Columbia, July 30 /PRNewswire/ -- The following release was issued today on behalf of the board of directors of International Veronex Resources Ltd. (NASDAQ: IVXRF; VSE: IVX) by David A. Hite, director:
 On July 26, 1993, the directors of International Veronex Resources Ltd. ("Veronex") received notification that on July 23, 1993, the United States Court of Appeals for the Ninth Circuit (the "Court of Appeals") filed its decision on Nordell International Resources' and International Veronex Resources' appeal of the Dec. 13, 1990, Arbitration Award in favor of Triton Energy Corporation ("Triton").
 The Court of Appeals decision affirmed the Arbitration Award against Nordell International Resources Ltd. ("Nordell"). The Arbitration Award against Veronex Resources Ltd. was reversed, and remanded to the United States District Court for further proceedings of the alter ego issue.
 Management of Veronex has reviewed the Court of Appeals decision and determined that Veronex has been released from the adverse arbitration award and is no longer liable for the monetary judgment to Triton. The Arbitration Award has been confirmed against Veronex's 100-percent owned subsidiary, Nordell International Resources Ltd.
 The Court of Appeals memorandum elaborated on the fact that an arbitration award may not be reversed "on the arbitration panel's erroneous findings of fact." The Court of Appeals even went so far as to give an example of a case wherein the arbitrators chose to accept falsified data as fact, therefore, the Arbitration Award could not be reversed. While this may seem absurd, it is true. The rules of arbitration require that even if the arbitrators make an error of fact or an error in interpreting the contract, the award must be enforced. The plain truth is that the arbitration system is a complete failure at rendering justice. Any dispute resolution system that will enforce an erroneous award simply cannot be tolerated as a fair and just system. Notwithstanding the inherent weakness of the arbitration system, there was some justice in the Court of Appeals decision. The award against Veronex was reversed.
 Since the award against Veronex was reversed, Veronex is now in a position
to pursue its fraud claim against Triton. There is currently a separate appeal, by Veronex, pending in the Court of Appeals, on this very subject, and Veronex' law firm, Belcher & Collins, is researching the appropriate action to be pursued by Veronex. However, it is clear from the Court of Appeals decision that Veronex is no longer bound by the arbitration award.
 -0- 7/30/93
 /EDITOR'S NOTE: The Vancouver Stock Exchange has neither approved nor disapproved this news release./
 /CONTACT: David Wooldridge of International Veronex Resources Ltd., 310-861-0383/
 (IVXRF IVX)


CO: International Veronex Resources Ltd. ST: British Columbia IN: SU:

AR -- CL012 -- 7864 07/30/93 15:30 EDT
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Publication:PR Newswire
Date:Jul 30, 1993
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