Thorunn Howatt
Northern News Services

Yellowknife (Sep 25/02) - The owner of Yellowknife's Explorer Hotel suffered huge losses last year.

Grandfield Pacific Inc. posted a net loss of $780,223 for its year ended April 30 compared to net income of $384,659 the year before. That's a million-dollar difference.

The company is blaming the loss on the Sept. 11 disaster and a continuing downturn in the Japanese economy. The Explorer Hotel caters largely to Japanese tourists visiting Yellowknife to view the Northern Lights.

Last month Grandfield Pacific was warned by the Toronto Stock Exchange that it could be facing de-listing. In order to be a trading member of the Toronto Stock Exchange (TSX) a company has to have a market capitalization of at least $3 million. Grandfield Pacific's quoted market value is $2.2 million.

The company could qualify to trade on the venture exchange -- owned by the TSX -- which has different listing requirements.

Grandfield Pacific is a publicly traded company listed on the TSX as symbol GFD. It is involved in the hotel industry and its head office is in Yellowknife.

The company's shares plunged after the Sept. 11 terrorist attacks in the U.S. last year. That event wrecked havoc on Yellowknife's aurora tourism industry.

Grandfield Pacific's total revenue for the year plummeted by 18.8 per cent to $6,078,152 compared to $7,489,394 the year before.

But the new year looks much brighter. Aurora tourism has picked up. Japanese visitors are filling the hotel for autumn Northern Lights viewing.

"Considering the tragic event that took place during 2001-2002 coupled with the turndown in the Japanese economy we have been able to maintain a positive posture and moreover position our activities to return to profitability through the second quarter of 2002/2003," said company president Harry Symington.