LIVELY,ONTARIO -- Young-Shannon Gold Mines, Limited is pleased to report assay results from its current gold exploration program in Chester Township, Ontario. The following are results for diamond drill hole no. 204, which is a step-out hole 1200 feet west of Section 37:

 
Results for DD Hole no.204 announced on October 28, 1996: 
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 81'   0"   to    88'   5"    7' 5"  4.2  grams  gold per ton 
224'   5"   to   228'   8"    4' 3"  0.44 ounces gold per ton 
228'   8"   to   234'   8"    6' 0"  2.0  grams  gold per ton 
234'   8"   to   241'   1"    6' 3"  0.28 ounces gold per ton 
241'   1"   to   251'   1"   10' 0"  2.0  grams  gold per ton 
251'   1"   to   258'   2"    7' 1"  1.6  grams  gold per ton 
 
New Assay Results for DD Hole no.204 from 258'2" to 869' 
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309'   6"   to   318'   2"    8' 6"  1.4  grams gold per ton 
334'        to   338'   7"    4' 7"  2.2  grams gold per ton 
369'   4"   to   375'   4"    6'     7.5  grams gold per ton 
417'        to   421'         4'     1.0  grams gold per ton 
453'   4"   to   461'         7' 6"  3.4  grams gold per ton 
475'   7"   to   482'         6' 3"  1.4  grams gold per ton 
506'        to   513'   5"    7' 5"  3.7  grams gold per ton 
525'        to   534'   8"    9' 8"  3.5  grams gold per ton 
534'   8"   to   552'   8"   18' 0"  6.9  grams gold per ton 
560'        to   571'   5"   11' 5"  4.0  grams gold per ton 
582'   6"   to   584'   6"    2'     1.4  grams gold per ton 
592'   9"   to   599'   6"    6' 7"  3.0  grams gold per ton 
630'        to   641'        11'     2.6  grams gold per ton 
665'        to   693'        28'     2.6  grams gold per ton 
712'        to   719'         7'     2.0  grams gold per ton 
746'        to   767'        21'     1.0  grams gold per ton 
767'        to   771'         4'     2.8  grams gold per ton 
801'   7"   to   813'        11' 3"  2.8  grams gold per ton 
832'        to   846'        14'     1.8  grams gold per ton 
849'        to   869'        20'     1.6  grams gold per ton 

A series of holes at 100-foot spacing will begin in late December to early January, both east and west of diamond drill hole no.204.

Young-Shannon Gold Mines, Limited holds a 100 percent interest in a contiguous block of 11 patented mining claims situated in west- central Chester Township, Ontario. The claim block is situated 70 air-miles south of Timmins, and 95 air-miles northwest of Sudbury.

The property lies within the Swayze Greenstone Belt. An assemblage of east-west striking, steeply dipping Archean felsic and mafic flows, pyroclastics and metasediments, this belt may be the western extension of the Abitibi Superbelt, host for important base and precious metal deposits from Chibougamau through Val d'Or, Kirkland Lake, and Timmins.

Between 1987 and 1991, Young-Shannon drilled almost 90,000 feet on the property. This previous exploration identified resources of 1,077,907 tons a 0.20 ounces of gold per ton, on what is known as the "C" - Gold Zone. A high-grade zone, known as the "C" - Prime Gold Zone, showed drill-indicated potential of 695,787 tons at 0.344 ounces of gold per ton. The "C" - Gold Zone is open for expansion at depth and along strike. Additional exploration is planned to increase gold reserves by testing extensions at depth in the "C" - Prime Gold Zone, and to explore newly-discovered zones on the property.

On behalf of the Board of Directors

Edward J. Blanchard
Director