Yellowknife (Feb 26/03) - Grandfield Pacific shares continue to get a close look by the Toronto Stock Exchange.

But neither the TSX nor the company would, or could, explain why.

The Richmond, B.C. company owns the Explorer Hotel and Discovery Inn in Yellowknife.

The TSX said Tuesday it has extended a review period for Grandfield shares until April 23.

The company has been under review by the exchange since last summer when it failed to meet TSX listing eligibility requirements.

The TSX requires a minimum market value of $3 million to be listed on the exchange.

Grandfield shares, then trading at 15 cents, gave the firm a $2.2 million market value.

The shares have since rebounded to 88 cents for a market value of $6.7 million.

TSX spokesman Steve Kee declined to explain the reason for the latest review extension.

"We don't discuss the status or state of any of our reviews so I can't give you any more information at this time," he said.

Grandfield president Sam Mark said the TSX hasn't given him a reason either, other than the one offered last summer.

The firm now easily meets the minimum market value requirement, he noted.

Mark said other tourism-related businesses are in the same boat. Continuing uncertainty over a war in Iraq is fuelling caution throughout the industry and in the stock markets, he said.

"They (the TSX) have told me there isn't a problem. It is just a review and the shares are trading. I think they just want to be sure."

Grandfield Pacific shares and revenue dropped sharply after the Sept. 11 terrorist attacks in the U.S.

The firm's Yellowknife hotels depend heavily on tourists from Japan.

Business has yet to return to early-2001 levels but the firm is clawing its way back, said Mark.

"Business has improved," he said. "It is too bad with the Iraq situation because that impacts on Japanese tourism. But we are showing an improvement over last year."

For the six months to Oct. 31, 2002 -- the last figures available -- Grandfield revenue was $2.906 million, down one per cent from the same period in 2001.

In fiscal 2002 (to the end of April), the company had posted a loss of $780,223 on revenues of $6.078 million.

A year earlier the firm posted a profit of $348,659 on revenues of $7.489 million.