EXHIBIT 99.1



AUDITORS' REPORT

To the Shareholders of Harmac Pacific Inc.


We have audited the consolidated statements of financial position of Harmac
Pacific Inc. as at December 31, 1998 and 1997 and the consolidated statements of
operations and deficit and changes in financial position for the years then
ended. These consolidated financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
consolidated financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform an audit to obtain
reasonable assurance whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.

In our opinion, these consolidated financial statements present fairly, in all
material respects, the financial position of the Company as at December 31, 1998
and 1997 and the results of its operations and the changes in its financial
position for the years then ended in accordance with generally accepted
accounting principles. As required by the British Columbia Company Act, we
report that, in our opinion, these principles have been consistently applied.



Vancouver, Canada                                  PRICEWATERHOUSECOOPERS LLP
January 26, 1999                                   Chartered Accountants