AREQUIPA RESOURCES - PROSPECTUS APPROVED: DRILL PROGRAMS TO COMMENCE ON THREE PROPERTIES.

VANCOUVER, B.C.--(BUSINESS WIRE)--May 17, 1995--AREQUIPA RESOURCES LTD (VSE: AQP) Arequipa Resources Ltd. (the "Company") is pleased to announce that receipts have been obtained for a Prospectus May 11, 1995 qualifying the Special Warrant financing of $CDN 2.15 million completed in January by Loewen Ondaatje McCutcheon Limited. The approval of the Prospectus qualifies for issuance 2,875,000 common shares and releases $1,435,000 from escrow which will be used to fund the Company's ongoing exploration and development programs in Peru.

Specifically, the Company intends to immediately commence a $650,000 exploration program on the Paron gold deposit. This program has been designed to test the extensions of the gold mineralization to the north south and west where the deposit is open and where exploration could add significantly to tonnage. As well, this program is designed to bring the gold resource outlined in the 1994 drill program into the proven and probable reserve category, conduct further metallurgical testing and commence prefeasibility work.

Pursuant to agreements reached with Asarco (News Release #95-11) and Phelps Dodge (News Release #95-9), mapping and geochemical sampling have been completed and drill programs are scheduled to commence shortly at both at the Company's La Ventana and Los Calatos properties. Both Ventana and Calatos host large alteration zones with outcroppings of leached capping after suphides often associated with higher grade secondary enrichment copper deposits.

Under the terms of their respective agreements, Asarco and Phelps Dodge have the right to acquire a 60% participating interest in the La Ventana and Los Calatos properties respectively. Minimum work commitments of US$10 million in addition to cash payments totaling over US$1.5 million for each of these properties are required to earn 40% and 49% interest respectively at the end of the exploration phase. Asarco's and Phelps Dodge's respective interests can be increased to 51% by providing a bankable feasibility study. Thereafter a further 9% interest can be purchased for US$ 5 million per property.

Arequipa Resources Ltd. 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.

ON BEHALF OF THE BOARD OF DIRECTORS

Ms. Catherine McLeod

President

The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

CONTACT: Ms. Catherine McLeod

President

604/684-0003

INDUSTRY KEYWORD: MINING REPEATS: New York 212-575-8822 or 800-221-2462; Boston 617-330-5311 or

80