Proceedings

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IN THE MATTER OF THE SECURITIES ACT
R.S.O. 1990, c. S.5, AS AMENDED

- AND -

IN THE MATTER OF
GOLD-QUEST INTERNATIONAL, 1725587 Ontario Inc. carrying on business as
HEALTH AND HARMONEY, HARMONEY CLUB INC.,
DONALD IAIN BUCHANAN, LISA BUCHANAN AND SANDRA GALE

ORDER
(Section 127 of the Securities Act)


      WHEREAS on April 1, 2008, the Ontario Securities Commission (the "Commission") ordered, pursuant to clause 2 of subsection 127(1) and subsection 127(5) of the Securities Act, R.S.O. 1990, c. S.5, as amended (the "Act") that all trading in any securities of Gold-Quest International (“Gold-Quest”) shall cease (the “Temporary Order”);

      AND WHEREAS the Commission further ordered as part of the Temporary Order that pursuant to clause 2 of subsection 127(1) and subsection 127(5) of the Act that all trading in any securities by Health and HarMONEY, Donald Iain Buchanan and Lisa Buchanan shall cease;

      AND WHEREAS the Commission further ordered as part of the Temporary Order that pursuant to clause 3 of subsection 127(1) and subsection 127(5) of the Act that any exemptions contained in Ontario securities law do not apply to Gold-Quest, Health and HarMONEY, Donald Iain Buchanan and Lisa Buchanan;

      AND WHEREAS the Commission further ordered as part of the Temporary Order that pursuant to clause 3 of subsection 127(1) and subsection 127(5) of the Act that any exemptions contained in Ontario securities law do not apply to Gold-Quest’s officers, directors, agents or employees;

      AND WHEREAS on April 8, 2008, the Commission issued a Notice of Hearing to consider among other things, the extension of the Temporary Order (the “TCTO Hearing”);

      AND WHEREAS on April 11, 2008 the Temporary Order was extended by the Commission with some amendments (the “Amended Temporary Order”);

      AND WHEREAS on March 13, 2009, the Commission issued a Notice of Hearing of pursuant to sections 127 and 127.1 of the Act (the “Hearing”) accompanied by a Statement of Allegations dated March 12, 2009, issued by Staff of the Commission (“Staff”) with respect to Gold-Quest, 1725587 Ontario Inc. carrying on business as Health and HarMONEY, the Harmoney Club, Donald Iain Buchanan, Lisa Buchanan and Sandra Gale;

      AND WHEREAS on March 20, 2009, upon hearing submissions from Sandra Gale, counsel for Staff and counsel for Donald Iain Buchanan and Lisa Buchanan, it was ordered that the Hearing be adjourned to May 26, 2009;

      AND WHEREAS on May 26, 2009, upon hearing submissions from Sandra Gale, counsel for Staff and counsel for Donald Iain Buchanan and Lisa Buchanan, it was ordered that the Hearing be adjourned to June 25, 2009;

      AND WHEREAS on June 25, 2009, counsel for Staff, counsel for Sandra Gale and counsel for Donald Iain Buchanan and Lisa Buchanan attended before the Commission;

      AND WHEREAS on June 25, 2009, no one appeared for Gold-Quest, Health and HarMONEY, or the Harmoney Club;

      AND WHEREAS on June 25, 2009, upon hearing submissions from counsel for Staff, counsel for Sandra Gale, and counsel for Donald Iain Buchanan and Lisa Buchanan, it was ordered that the Hearing be adjourned to August 20, 2009;

      AND WHEREAS the Amended Temporary Order has been extended from time to time, most recently until August 21, 2009, and the TCTO Hearing has been adjourned from time to time most recently until August 20, 2009;

      AND WHEREAS a hearing was held on August 20, 2009, and Staff provided submissions regarding their attempts to serve all respondents in this matter;

      AND WHEREAS no one appeared for Gold-Quest or 1725587 Ontario Inc. carrying on business as Health and HarMONEY and Harmoney Club Inc.;

      AND WHEREAS on August 20, 2009, upon hearing submissions from counsel for Staff and counsel for Sandra Gale requesting that a pre-hearing conference be held on October 9, 2009;

      AND WHEREAS Donald Iain Buchanan and Lisa Buchanan did not appear and Staff informed the Commission that counsel for Donald Iain Buchanan and Lisa Buchanan has also requested that a pre-hearing conference be held on October 9, 2009;

      IT IS ORDERED THAT the Hearing is adjourned to October 9, 2009 at 10:00 a.m. or such other date as is agreed by the parties and determined by the Office of the Secretary for the purpose of having a pre-hearing conference, the TCTO Hearing, and for any other purpose that the parties may advise the Office of the Secretary.

DATED at Toronto this 20th day of August, 2009

    "Carol S. Perry"    
Carol S. Perry