The work carried out on the 1688 sq. km. permit area during the period from April to August, 1996 consisted primarily of regional stream sediment sampling and more detailed evaluation of the gold occurrence known as "Indice 58." A total of 1799 ground samples were taken and tested.

The regional work revealed the existence of a number of new anomalies, the significance of which are to be assessed in the next stage of exploration. Some of these were comparable with or stronger than the Indice 58 anomaly investigated in orientation sampling. The next phase of exploration will further define and evaluate these anomalies and will consist of follow up stream sediment and grid soil sampling.

At Indice 58, trenching and termite mound and rubble sampling confirmed the presence of gold over a strike length of at least 1 km. Geological observations and assessment of the results suggest a series of small, en-echelon lenses of gold bearing quartz vein and stockwork mineralisation. Maximum grade encountered was 1.98 g/t over 2 metres and 0.5 g/t over 14 metres in Trench 16 and 0.4 g/t over 39 metres including 1.84 g/t over 2 metres and 1.42 g/t over 4 metres in Trench 15.

Previous exploration by Onarem (Niger Geological Survey), identified a 6 km east-south-east trending coincident photo and ground magnetic anomaly, which is thought to represent a regional shear zone structure. Two trenches one metre deep on Indice 58, which lies on this structure, excavated across the anomaly gave results of 88m of 0.43 g/t Au and 50m of 1.1 g/t Au. Only 30 kms along strike from Sakoira. Echo Bay and Etruscan Resources have recently announced the discovery of a resource containing at least 1,000,000 ounces of gold amenable to heap leaching. In addition Etruscan has recently reported a resource of close to 2,000,000 ounces of gold on the Tiawa Concession, which is 50 kms south-west from Sakoira.

Due to the encouraging results, the exploration program has been accelerated. Phase 2 of the Sakoira program will commence in October, 1996. It will consist of follow-up stream sediment, soil and termite mound sampling around the anomalies discovered in Phase 1. followed by trenching and drilling on the best targets. Part of the permit area to the south of the Niger River remains untested on a regional scale. High sensitivity geochemistry sampling will be carried out over this area in Phase 2.

The Sakoira gold project is a joint venture with Reunion Mining PLC. of London in which the Company is earning a 45% interest in by spending US$250,000 in year 1 and US$350,000 in year 2. To date, the Company has spent US$229,840 on the Sakoira gold project.

For further information: Keith Neumeyer, Direct Line (604) 541-9810