Securities Law & Instruments

Headnote

MRRS- National Instrument 43-101 - Relief granted from requirementin subsection 4.1(1) to file a technical report upon first becominga reporting issuer - Issuer to become a reporting issuer as aresult of plan of arrangement where assets spun out of existingreporting issuer - Business of new reporting issuer substantivelya continuation of business of existing reporting issuer.

RulesCited

NationalInstrument 43-101 Standards of Disclosure for Mineral Projects,ss 4.1(1) and 9.1(1).



IN THE MATTER OF

THESECURITIES LEGISLATION OF ALBERTA,

BRITISHCOLUMBIA, AND ONTARIO

AND

INTHE MATTER OF

THEMUTUAL RELIANCE REVIEW SYSTEM

FOREXEMPTIVE RELIEF APPLICATIONS

AND

INTHE MATTER OF

CORONAGOLD CORPORATION, BLUE ECHO VENTURES INC.

ANDUNISPHERE WASTE CONVERSION LTD.

MRRSDECISION DOCUMENT

WHEREASthe local securities regulatory authority or regulator (the "DecisionMaker") in each of Alberta, British Columbia, and Ontario (the"Jurisdictions") has received an application from Corona GoldCorporation ("Corona"), Blue Echo Ventures Inc. ("New Corona")and Unisphere Waste Conversion Ltd. ("Unisphere") (collectively,the "Filers") for a decision under the securities legislationof the Jurisdictions (the "Legislation") that the requirementsof the Legislation to file a current technical report for eachmaterial property upon first becoming a reporting issuer (the"Technical Report Requirement") will not apply to New Corona;

ANDWHEREAS under the Mutual Reliance Review System forExemptive Relief Applications (the "System"), the Ontario SecuritiesCommission is the principal regulator for this application;

ANDWHEREAS the Filers have represented to the Decision Makersthat:

1.Corona is a public company incorporated under the BusinessCorporations Act (Ontario) (the "OBCA"), has been a reportingissuer in the Provinces of British Columbia, Alberta and Ontariofor more than twelve months and is not in default of any requirementsof Legislation.

2.The authorized capital of Corona consists of an unlimited numberof common shares ("Corona Common Shares") of which there are12,641,287 Corona Common Shares outstanding.

3.Corona also has outstanding options ("Corona Options") to purchasean aggregate of 1,761,128 Corona Common Shares.

4.Corona is involved in the exploration of geologically attractiveproperties for precious and base metals and the Corona CommonShares are listed for trading on The Toronto Stock Exchange(the "TSE").

5.New Corona is an inactive, private, wholly owned subsidiaryof Corona incorporated under the OBCA with no material assetsother than approximately $250,000 in cash and no liabilities.

6.The authorized capital of New Corona consists of an unlimitednumber of common shares ("New Corona Common Shares") of which6,000,000 are issued and outstanding.

7.New Corona has a stock option plan (the "New Corona Plan") fordirectors, officers, employees and consultants of New Corona.

8.Unisphere is a private company incorporated under the OBCA formedfor the purpose of introducing systems to process non-hazardouswaste and industrial waste in an environmentally safe manner,principally through the thermochemical decomposition of scraptires.

9.The authorized capital of Unisphere consists of 10,000,000 specialshares and an unlimited number of common shares ("UnisphereCommon Shares") of which there are no special shares and 7,707,549Unisphere Common Shares outstanding.

10.Unisphere also has outstanding: (a) options ("Unisphere Options")to purchase an aggregate of 3,685,000 Unisphere Common Shares;and (b) warrants to purchase an aggregate of 666,664 UnisphereCommon Shares. In addition, Unisphere has an agreement to grantwarrants to purchase an aggregate of 501,803 Unisphere CommonShares immediately prior to the Arrangement.

11.Corona, New Corona and Unisphere have agreed, subject to thesatisfaction of certain conditions precedent, to participatein a proposed statutory plan of arrangement (the "Arrangement")pursuant to section 182 of the OBCA, pursuant to which two separatepublicly traded companies will be formed, being New Corona andthe company resulting from the amalgamation of Corona and Unisphere("New Unisphere").

12.Corona will transfer its mineral assets to New Corona. New Coronawill conduct the mineral exploration operations previously carriedon by Corona and New Unisphere will conduct the waste tire recyclingbusiness previously carried on by Unisphere.

13.Upon the Arrangement becoming effective (the "Effective Date"),Corona Common Shareholders will become holders of both New CoronaCommon Shares and common shares of New Unisphere ("New UnisphereCommon Shares") and Unisphere Common Shareholders will becomeholders of New Unisphere Common Shares.

14.The relevant steps of the Arrangement can be summarized as follows:

()the articles of Corona will be amended to create, and authorizeCorona to issue an unlimited number of, pre-amalgamation commonshares ("Pre-Amalgamation Common Shares");

(a)Corona will transfer and assign to New Corona all of the non-cashassets of Corona (plus $750,000 cash) at the fair market valuethereof and issue to New Corona a warrant (the "Corona Warrant")entitling New Corona to purchase an aggregateof 1,000,000 Corona Common Shares at a price of $2.00 per sharefor a period of three years from the Effective Date in exchangefor the issue by New Corona to Corona of 6,641,287 New CoronaCommon Shares;

(b)all right, title and interest of the Corona Shareholders inthe Corona Common Shares will be surrendered to Corona for cancellation,and such shares will be cancelled by Corona, and in exchangetherefor, each Corona Shareholder will receive from Corona onePre-Amalgamation Common Share and one New Corona Common Sharefor each such Corona Common Share so surrendered and cancelled;

(c)Corona and Unisphere will amalgamate, pursuant to the provisionsof the OBCA, and continue as New Unisphere;

(d)each holder of Pre-Amalgamation Common Shares will receive oneNew Unisphere Common Share for every one Pre-Amalgamation CommonShare held and each holder of Unisphere Common Shares will receive3.28 New Unisphere Common Shares for each Unisphere Common Shareheld;

(e)each Corona Option will be amended so that each holder of aCorona Option will be entitled to receive, on exercise of aCorona Option, one New Unisphere Common Share for each CoronaOption held, on the same terms and conditions and at the sameexpiry date or dates as set forth therein notwithstanding theresignation, removal or termination of the holders;

(f)each Unisphere Option will be amended so that each holder ofa Unisphere Option will be entitled to receive, on exerciseof a Unisphere Option, one New Unisphere Common Share for eachUnisphere Option held, on the same terms and conditions andat the same expiry date or dates as set forth therein; and

(g)the terms of the Corona Warrant will be amended to permit NewCorona to purchase up to 1,000,000 New Unisphere Common Sharesat a price of $2.00 per share for a period of three years fromthe Effective Date.

2. The Arrangement has been approved by theholders of Corona Common Shares, the holders of Unisphere CommonShares and by the Superior Court of Justice (Ontario).

3.The Arrangement is also subject to certain conditions precedent,including:

()the New Corona Common Shares and New Unisphere Common Sharesbe freely tradable in all of the Jurisdictions at the EffectiveDate;

(b)Unisphere must have completed or received commitments on termssatisfactory to Corona for additional equity financing of notless than $3.5 million; and

(c)the New Corona Common Shares and the New Unisphere Common Sharesmust have been approved for listing by either the TSE or theCanadian Venture Exchange.

4.Prospectus-level disclosure relating to New Corona and New Unisphere,after giving effect to the Arrangement, and the securities tobe distributed pursuant to the Arrangement, was included inthe joint management proxy circular (the "Circular") of Coronaand Unisphere dated July 23, 2001.

5.Holders of Corona Common Shares and Unisphere Common Shareshad the right to dissent from the Arrangement under section185 of the OBCA, and the Circular disclosed full particularsof this right.

6.New Unisphere will be a reporting issuer in each of BritishColumbia, Alberta and Ontario upon the completion of the Arrangement.New Corona will be a reporting issuer in each of British Columbiaand Alberta upon completion of the Arrangement. New Corona willbe a reporting issuer in Ontario upon the listing of the NewCorona Common Shares on the TSE.

7.Corona's mineral exploration activities have been the subjectof continuous disclosure on an ongoing basis for more than 12months pursuant to Corona's responsibilities as a reportingissuer. The disclosure in the Circular also contained technicaldisclosure regarding Corona's mineral exploration activities.

ANDWHEREAS under the System, this MRRS Document evidencesthe decision of each Decision Maker (collectively, the "Decision");

ANDWHEREAS each of the Decision Makers is satisfied thatthe test contained in the Legislation that provides the DecisionMaker with the jurisdiction to make the Decision has been met:

THEDECISION of the Decision Makers under the Legislationis that New Corona is exempt from the Technical Report Requirement.

April 10, 2002.

"KathrynSoden"