Correcting...Indomin Busang North Exploration Update.(Correction Notice)

TORONTO--(BUSINESS WIRE)--Dec. 16, 1996--(VSE IRL.) The Directors of Indomin Resources are pleased to make the following announcement regarding exploration of its Indonesian exploration projects:

Contracts of Work

Indomin is waiting to be advised by the Indonesian Government on a date for signing of the four 6th generation Contracts of Work (CoWs) to which the company is a party - Busang North gold project (85 percent interest), East Sulawesi gold project (90 percent interest), Kumamba heavy mineral beach sand project (60 percent interest) and Martapura diamond project (60 percent interest).

The signing of all 6th generation CoWs appears to have been delayed by the ownership dispute surrounding Bre-X Minerals Busang gold project. With today's announcement that a joint development proposal for Busang has been submitted by Bre-X and Barrick Gold Corporation, it is hoped that signing of the 6th generation CoWs is imminent.

During the current quarter, Indomin initialed 7th generation CoWs with the Indonesian Department of Minerals and Energy covering the Putussibau, Batu Dayreuh and Sungai Keriyau gold projects (90 percent interest in each case). Busang North

The detailed geochemical program continues to outline a number of significant gold anomalies throughout the 127,300ha Contract of Work application area. This program is continuing north through the CoW area and is expected to outline additional anomalies during the first quarter of 1997. To date eight anomalies have been identified draining from volcanic sources in the southern half of the CoW.

Follow-up mapping and soil augering of these eight gold anomalies has resulted in the selection of four targets for drilling.

The volcanic complex announced previously is now ranked fourth for drilling behind three larger and more prospective targets which have emerged during the reconnaissance exploration.

During November at location H-61 in the south-western portion of the tenement, follow-up of gold anomalies in stream sampling resulted in the discovery of a breccia zone at the intersection of a NE trending boundary fault and a NW trending transfer fault - the same geological setting as the Busang deposit 20km to the south. This location has been elevated to the highest priority for drilling. Stream geochemistry indicates anomalous gold in streams draining the breccia exposure. Weathered, brecciated material occurs as float in the streams. Some 600m north of the breccia zone, a sample of highly weathered outcrop with minor chalcedonic quartz veining yielded anomalous gold (0.5g/t Au, 119 ppm Cu and 521 ppm As). Petrography by epithermal gold expert Terry Leach of New Zealand confirmed that samples submitted for analysis displayed textures indicative of hydrothermal brecciation.

"This is a very exciting target for us," said Indomin Chairman and CEO, Mr Kenneth McKechnie. "Hydrothermal breccias are often associated with epithermal gold deposits of the Busang style. The breccia zone at H61 is very large, suggesting that the structure has the size potential to host a multi-million ounce deposit."

The H61 target is located in the westernmost sector of the CoW area. Bulldozers are currently pushing an access road to the site to allow trenching and drilling.

The largest and strongest gold anomaly outlined to date is near Gunung Hagar, a topographic high in the central southern portion of the CoW area. The anomaly has been outlined over an area of 4 sq km, with gold assays of up to 282 ppm Au having been recovered from panned concentrates, 73.5ppb Au in BLEG (bulk leach extractable gold) sampling and 2490ppb Au in stream sediment sampling. Soil augering and detailed mapping is in progress over the anomalous area with the aim of delineating drilling targets.

A one-year drilling contract has been signed for Busang North and a diamond drill rig is currently available on-site. Drilling will commence once the CoW is signed. (Under Indonesian regulations, core drilling is not permitted prior to final signature of a 6th generation CoW.)

Although the delay in the signing of the CoWs has been very frustrating for Indomin, it has allowed the Company extra time to undertake detailed follow-up exploration on the CoW area. This has resulted in the discovery of significantly better drilling targets than were first identified in the initial exploration program.

CONTACT: Indomin Resources Ltd.

Chuck Forrest, 416/ 955-9535

http://www.indomin.com (Internet)