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                SECURITIES AND EXCHANGE COMMISSION
                         Washington, D.C.

LITIGATION RELEASE No. 15386 / June 12, 1997

SECURITIES AND EXCHANGE COMMISSION v. WYE RESOURCES, INC. AND
REHAN MALIK, Civil Action No. 96CV02223 (D.D.C., filed September
26, 1996).

     The Securities and Exchange Commission today announced that
on May 28, 1997, the Honorable Paul L. Friedman of the United
States District Court for the District of Columbia entered a
Default Judgment as to Defendant Wye Resources, Inc.  The Default
Judgment permanently enjoins Wye Resources from violating the
antifraud and registration provisions of the federal securities
laws.   

     Wye is a Canadian corporation headquartered in Toronto,
Ontario and claims to own interests in various gold and diamond
mining properties.  However, as alleged in the Commission's
complaint, Wye has recorded no earnings from actual mining
operations.  The complaint, filed on September 26, 1996 against
Wye and its former President, Rehan Malik, alleges that Wye and
Malik participated in a fraudulent promotional campaign targeted
towards U.S. investors and improperly distributed Wye stock to
those investors.  See SEC v. Wye Resources, Inc. and Rehan Malik,
Lit. Release No. 15073 (September 26, 1996). 
  
     With respect to Wye, the complaint specifically alleges that
Wye issued press releases and placed messages over the Internet
through a New Orleans-based computer bulletin board service
("BBS") called the "Emerging Growth Stock" BBS.  Certain of these
releases and messages were false and misleading in that, among
other things, they misrepresented the status of Wye's ongoing
attempts to exploit certain diamond mining properties in the
country of Congo (formerly Zaire).  The complaint alleges that
Wye thereby violated Section 10(b) of the Securities Exchange Act
of 1934 and Rule 10b-5 thereunder.

     The complaint also alleges that Wye violated Section 5 of
the Securities Act of 1933 by engaging in a scheme to distribute
approximately 5.3 million shares of Wye stock that were not
properly issued under Canadian law nor properly registered with
the Commission.  According to the complaint, approximately 2.5
million of these improperly issued shares were distributed to
U.S. investors.  As of February 1, 1994, approximately 4 million
shares, or 28.9 percent of the Wye stock then outstanding, was
held by U.S. investors.  On September 26, 1996, the Commission
instituted public administrative proceedings against a New York
corporation and its President in connection with their roles in
the distribution of Wye stock.  See In the Matter of Broad
Capital Associates, Inc. and Murray Aaron Huberfeld,
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Administrative Proceeding File No. 3-9101; Securities Act Release
No. 7338 (September 26, 1996).  


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     On December 26, 1996, Malik consented, without admitting or
denying the allegations of the Commission's complaint, to the
entry of a final judgment of permanent injunction and agreed to
pay a penalty in the amount of $25,000.  See SEC v. Wye
Resources, Inc. and Rehan Malik, Lit. Release No. 15198 (December
26, 1996).      

     The Commission wishes to acknowledge the assistance of the
Ontario Securities Commission.