AREQUIPA RESOURCES - DRILL PROGRAM TO COMMENCE IN PERU.

VANCOUVER, BC--(BUSINESS WIRE)--AUG. 28, 1995--AREQUIPE RESOURCES (VSE:AQP) Arequipa Resources Ltd. ("Arequipa" or the "Company") is pleased to announce that drilling has commenced on Arequipa's La Ventana property in the Republic of Peru. The property, which totals 10,400 hectares, is located in the Southern Peru Copper Belt. This belt hosts four of the world's largest copper deposits, including Southern Peru Copper's Toquepala deposit twenty kilometers southeast of La Ventana.

The initial drill program will consist of up to six widely spaced holes at least 250 meters deep to test for the presence of a porphyry copper deposit at depth.

Asarco Inc. ("Asarco") has assigned its right to acquire up to a sixty percent (60 percent) participating interest in La Ventana to Southern Peru Copper Corporation ("SPCC"). Asarco owns 63 percent of SPCC. SPCC will be the operators of the program. Over the next four years, SPCC must make cash payments totalling $US 1.6 million and advance $US 10 million for exploration to earn a 40 percent share in La Ventana. This interest can be increased to 51 percent by providing a bankable feasibility study. Thereafter SPCC can purchase 9 percent of Arequipa's interest in La Ventana for US$ 5 million to increase its stake to 60 percent.

Arequipa Resources Limited is a mineral exploration and development company focused on the acquisition and development of copper and gold properties in Peru. The Company was founded by Mr. David Lowell who is credited with the discovery of the La Escondida deposit in Chile. The Company's shares trade on the Vancouver Stock Exchange under the symbol AQP. -0- EDITOR'S NOTE: The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

On Behalf of the Board of Directors Ms. Catherine McLeod President

CONTACT: Ms. Catherine McLeod, [phone]