AZCO Acquires Rights to Indonesian Property in Irian Jaya.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Sept. 9, 1996-- Azco Mining Inc. ("Azco") (TSE, AMEX SYMBOL:AZC) announces that it has received confirmation from the Ministry of Mines of Indonesia that it has been accepted to apply for a Contract of Work in the name of Azco over ground in Irian Jaya.

The Contract of Work was acquired for Azco under agreement with Indotan Inc., whereby Azco has paid $416,750 (U.S.) as security for the Contract of Work, and Indotan has retained a 15 percent participating interest, but which interest is carried in the form of a non-interest-bearing, non-recourse loan until the completion of a favourable, bankable feasibility study. Thereafter, the parties shall bear costs pro-rata in accordance with their participating interest. The costs carried for Indotan's 15 percent participating interest will be repaid firstly out of profits, in the event of commercial production. Indotan will also retain a 2 percent net smelter return royalty, which may be purchased by Azco at any time by the issuance of $3,000,000 (U.S.), in cash or shares at the discretion of Azco, and subject to any regulatory requirements.

The newly acquired ground which is the subject of Azco's mineral rights is comprised of 83,350 hectares and is situated due east from Freeport's Grasberg/Erzberg mine, hosting a well-known porphyry-skarn type Au-Cu ore deposit. It is reported that this mine has over one billion tons in reserves, is currently operating at 115,000 tons per day, and that the annual copper and gold production is expected to reach 1.1 billion pounds and 1.5 million ounces, respectively, by the close of 1996.

In accordance with the geological reports on file with the Ministry of Mines for Indonesia, the ground secured by Azco is underlain by the east extension of host rock of the Grasberg/Erzberg ore deposit consisting of Mesozoic and Cenozoic sediments of the Kemberlangen and Miocene New Guinea Limestone Groups. Azco, however, has no interest in the Graberg/Erzberg mine.

The filed geological reports confirm that only very limited exploration had been done previously (i.e. an airborne magnetic survey and a total of 65 stream sediment and pan concentrate samples were collected). There was no significant response obtained by magnetic survey, however, several geochemical results have shown relatively high content in Au (up to 3 g/cubic metre plus in pan concentrate), Zn and Pb (up to 100 plus ppm in stream sediments), matching with the reported fault pattern. In this carbonate region, the result of surface geochemical survey is generally low. Therefore, the ground requires further detailed geochemical surveying to reinterpret the mineralization pattern. A detailed geological mapping an , ground geophysical survey (IP, Mag, etc.) will be considered as a first phase program of exploration.

Azco is negotiating for other potential ground, geologically similar to that of the Grasberg/Erzberg area. -0-

NOTE TO EDITORS: This news release has been prepared by management of the company who takes full responsibility for its contents. The Toronto Stock Exchange neither approves nor disapproves of the contents of this news release.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

CONTACT: AZCO Mining Inc., Vancouver

Alan P. Lindsay, Anthony R. Harvey or Paul Lathigee

800/563-SXEW (7939)