Proceedings

IN THE MATTER OF THE SECURITIES ACT
R.S.O. 1990, c.S.5, as amended
AND
YBM MAGNEX INTERNATIONAL INC.
NOTICE OF HEARING
(Section 127(1) & (4))

TAKE NOTICE THAT the Ontario Securities Commission (the "Commission") will hold a hearing pursuant to section 127 of the Securities Act, R.S.O. 1990,c.S.5, as amended (the "Act") at its offices on the 8th floor, 20 Queen Street West, Toronto, Ontario, commencing on the 28th day of May, 1998 at 9:30 a.m. orso soon thereafter as the hearing can be held:

TO CONSIDER:

(a) whether to extend the Temporary Order dated May 13, 1998 that trading in any securities of YBM Magnex International Inc. ("YBM") immediately ceaseuntil the hearing is concluded in accordance with section 127(7); and

(b) whether in the opinion of the Commission it is in the public interest to make an order pursuant to section 127(1) clause 2 of the Act, that trading in anysecurities of YBM cease permanently or for such period as is specified in the order;

(c) such further and other orders as the Commission may deem appropriate.

BY REASON of the allegations as set out in the related Statement of Allegations made by staff of the Commission dated May 26th, 1998;

AND TAKE FURTHER NOTICE that any party to the proceedings may be represented by counsel at the hearing;

AND TAKE FURTHER NOTICE that, upon failure of any party to attend at the time and place aforesaid the hearing may proceed in the absence of that partyand such party is not entitled to any further notice of the proceeding.

May 26th, 1998.

"Rose Gomme"