SECURITIES AND EXCHANGE COMMISSION
                                   WASHINGTON, D.C.

          Litigation Release No. 15831 / August 5, 1998

          Securities and Exchange Commission v. Chancellor Group, Inc.
          Civil No. 98-CV-01933 (D.D.C.) (filed August 4, 1998)

          On August 4, 1998, the Commission filed a complaint in the United
          States District Court for the District of Columbia against
          Chancellor Group, Inc. ("Chancellor Group").  The complaint
          alleges that Chancellor Group,  a company engaged in investment
          banking and financial services and the development of natural
          resource properties whose securities are quoted in the pink
          sheets, failed to make available to the investing public current
          and accurate information about its financial condition and
          results of operation through the filing of periodic reports with
          the Commission as required by the Securities Exchange Act of 1934
          ("Exchange Act").  Specifically, the complaint alleges that
          Chancellor Group has not filed its Annual Reports on Form 10-K
          for the fiscal years ended July 31, 1996 and 1997, its Quarterly
          Reports on Form 10-Q for the fiscal quarters ended October 31,
          1996, January 31, April 30 and October 31, 1997 and  January 31
          and April 30, 1998 and seven Notifications of Late Filing with
          respect to its delinquent reports.  The Commission seeks to
          compel Chancellor Group to file its delinquent periodic reports
          and enjoin Chancellor Group from further violations of Section
          13(a) of the Exchange Act of 1934 and Rules 12b-25, 13a-1 and
          13a-13 thereunder.