AZCO acquires two more gold properties in Indonesia.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Dec. 5, 1996-- AZCO Mining Inc. (TSE, AMEX AZC.) AZCO Mining Inc.'s 90 percent-owned subsidiary, AZCO Indonesia Corp. Ltd., has contracted to acquire a 90 percent interest in two additional gold properties totaling 83,940 hectares in Indonesia. Indo-Gold Corporation Ltd. owns the remaining 10 percent of AZCO Indonesia. Through a strategic relationship with our strong Indonesian partners, AZCO Indonesia has an effective interface for doing business in Indonesia, plus the option to acquire a 90 percent interest in additional properties.

In September 1996 AZCO announced its first Contract of Work (CoW) application for 83,350 hectares located 90 kilometers east of Freeport's Grasberg/Ertsberg mine in Irian Jaya.

BENGKULU PROPERTY

The Bengkulu or second Cow was granted for 48,950 hectares of land in the historic Lebong Mining District located 60 kilometers north of Bengkulu, Sumatra. The Lebong District was first explored by the Netherland Indies Government between 1906 and 1916. Several famous high grade gold mines, including Lebong Tandai, Lebong Sulit, Lebong Simpang and Lebong Danok produced approximately 53 tonnes of gold and 60 tonnes of silver prior to 1945. Currently, only local miners are producing from traditional small-scale mines.

The Bengkulu property covers land recently opened by the Government and is located in a similar geological environment to that of Lebong Tandai. In a report prepared by a private consulting firm, the Lebong Tandai is stated to contain mineralization ranging from 300,000 to 500,000 tonnes averaging 14 g/t gold, 500 g/t silver and 0.33 percent copper in quartz veins hosted by volcanic rocks. Laverton Gold Aus., Newmont Bengkulu, BHP Minerals and Pacific Wildcat Resources also have mineral concessions nearby and are conducting significant exploration and development programs. AZCO has no interests in the properties held by the companies listed above.

Most of the mineralization occurs in quartz veins hosted within volcanics and sediments along the western flank of the Barisan Mountain Range. Granitic intrusives along this mountain range are believed to be the source of these epithermal style precious and base metal deposits.

The Bengkulu property was acquired by AZCO Indonesia under an agreement with P.T. Indocan Lestari Murni (Indocan) whereby AZCO Mining paid U.S. $244,750 as a security deposit to the Indonesian Government and U.S. $100,000 to Indo-Gold as reimbursement of expenses to acquire the property and related geological reports. Indocan has retained a 10 percent participating interest with the right to convert to a 2 percent net smelter royalty, in which AZCO Mining has an option to purchase for U.S. $3 million.

PURWOKERTO PROPERTY

The Purwokerto property covers 34,990 hectares located immediately west of the town of Purwokerto near the center of the Island of Java. In 1991 Aneka Tambang, a Government agency, performed regional geochemical surveys and detected anomalous gold within the volcanic rock sequence. In mid-1996 placer gold was found nearby which prompted the rush of a few thousand local gold panners to the area. This gold rush increased a few weeks later with the discovery of additional placer occurrences. Based on the Government's land status, geochemical survey results and the inferred source of the placer gold, AZCO Indonesia contracted to acquire a 90 percent interest in a KP (Mining Authorization) in this mineralized area.

The Purwokerto property was acquired for AZCO Indonesia under an agreement with P.T. Puri Permata Megah (P.T. PPM) whereby AZCO Mining has paid U.S. $182,090 as a security deposit to the Indonesian Government for the KP and U.S. $100,000 to Indo-Gold as reimbursement of expenses to acquire the property and related geological reports. P.T. PPM has retained a 10 percent participating interest with the right to convert to a 2 percent net smelter royalty, in which AZCO Mining has an option to purchase for U.S. $3 million.

AZCO Mining is well positioned with U.S. $30 million of assets, no debt and a strategic relationship with Phelps Dodge Corporation to develop AZCO's 30 percent interest in two Mexican copper projects. AZCO's subsidiaries continue to expand their presence in the gold mining industry with a dual focus on Indonesia and Africa.

On behalf of the Board of Directors of AZCO Mining Inc., David C. Beling President and Chief Operating Officer 

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Alan P. Lindsay, 800/563-7939

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AZCO Mining Inc.

Anthony Harvey, 800/563-7939

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AZCO Mining Inc.

Paul Lathigee, 800/563-7939

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