AZCO forms gold company for West Africa.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Sept. 17, 1996-- AZCO Mining Inc. (TSE, AMEX: AZC) announced it has contracted to acquire 51 percent of a new company (SANOU Mining Corporation) which has a 100 percent working interest in the Medinandi and Dandoko concessions located in the Kenieba Gold Mining district of western Mali.

The Government of Mali has an option to acquire up to a 15 percent working interest after completion of a favorable feasibility study. Predecessor exploration groups have estimated the mineral potential on the Medinandi concession alone to exceed one million ounces of gold.

Exploration programs conducted on SANOU's concessions during the past 30 years by Malian, French and Russian groups have included 7,066 meters of core drilling, 16,840 meters of auger drilling, 2,756 meters of trenching, 576 meters of underground excavations and several thousand surface geochemical samples. Hundreds of prominent shallow shafts sunk by artisan miners also outline high grade gold zones. These concessions have excellent potential for additional discoveries and expansion of gold resources.

SANOU is currently evaluating all available data and planning to initiate by November 1996 a comprehensive program of geophysical surveys, geochemical sampling and core drilling designed to expand and advance gold resources into mineable ore reserve categories.

The gold in the Kenieba District is hosted in a 15 kilometer wide fault zone which extends at least 120 kilometers from Mali into Senegal. SANOU has applied in Senegal for a concession located west of its Malian concessions. SANOU's concessions in Mali cover approximately 54,400 hectares of highly prospective land along this northerly trending granite-greenstone belt within the Kenieba Inlier, a window through younger cover rocks to the Lower Proterozoic Birimian volcano-seidmentary system. Most of the primary gold mineralization in West Africa is found in the Birimian and Tarkwaian formations.

This greenstone environment contains a number of gold deposits which are presently being developed by owners other than AZCO. The Anglo American (38 percent), IAMGOLD (38 percent), Mali Government (18 percent) and IMF (6 percent) deposit of Sadiola (4.5 million ounces) is located some 130 kilometers north of the SANOU concessions. This deposit contains 49 million tonnes averaging 2.86 grams/tonne.

The Sabodala deposit (possibly 1 million ounces at an average grade of 3 + grams/tonne) is located in Senegal some 50 kilometers south of SANOU's property.

The Loulo deposit located 40 kilometers north of SANOU contains some 5.8 million tonnes at 4.4 grams/tonne (825,000 ounces). The Segala and Dar Salaam Projects of Oliver Gold Corp. contain 11 million tonnes at 2.8 grams/tonne (1 million ounces). Nevsun Resources' Tabakoto concession also is reported to possibly contain over one million ounces. Oliver's and Nevsun's concessions are located approximately 35 kilometers north of SANOU's concessions.

The agreement between AZCO, West African Gold & Exploration Ltd., Eagle River International Limited (EAGLE), and Lion Mining Finance Limited provides for the establishment of a joint venture holding company, Chaplin Holdings Ltd., which will be changing its name to SANOU Mining Corporation. SANOU is the sole beneficial owner of a Malian subsidiary headquartered in Bamako and called Western African Gold & Exploration Company S.A. (WAG) which owns the concessions. EAGLE, the original principal concession owner through a Malian subsidiary, has caused that subsidiary to convey the concessions to WAG in consideration of 3,500,000 shares and 4,000,000 warrants (exercisable at $1.00 U.S. per warrant) of SANOU. As part of its contractual commitment, AZCO has made available an exploration guarantee of $1,000,000 U.S. to the government of Mali, has the right to purchase 4,800,000 shares of SANOU at $0.25 (U.S.) per share, and has the right to receive an additional 1,000,000 shares of SANOU by paying to EAGLE 125,000 common shares of AZCO. Additionally, AZCO has contracted to arrange for and itself provide (and has the right and obligation to purchase 50 percent) financing in an amount of $1,000,000 U.S. at $0.50 per SANOU unit. At initial capitalization of SANOU, AZCO will own approximately 51.33 percent of SANOU and, in the event that it purchases 50 percent of the referenced $1,000,000 financing of SANOU, it will own 55.28 percent of SANOU. AZCO has an obligation to purchase 50 percent of future financings and a first right to purchase any unbought portion of such future financings.

EAGLE is a private company with 11 years of experience in relation to mining and conducting business in Mali. Yorkton Securities of Vancouver and Dr. Leon Daniels of Botswana provided business and technical advice during AZCO's due diligence efforts. Lion Mining Finance of London introduced this mining opportunity to AZCO.

AZCO is extremely pleased with this new endeavor since substantial gold mineralization has been established along with strong exploration upside on SANOU's properties. We gain with EAGLE an experienced partner which has excellent relations in Mali and other African countries. The pro-democracy government of Mali has also enhanced the mining laws, tax structure and business conditions to encourage foreign investment.

AZCO is well positioned with U.S. $30 million of assets, no debt and a strategic alliance with Phelps Dodge Corporation to develop its copper interests in Mexico. AZCO will continue to selectively pursue acquisitions and joint ventures of new mining opportunities with a prime focus on gold in Indonesia, Africa and the Americas. -0-

NOTE:

This news release has been prepared by management of the company who takes full responsibility for its contents. The American Stock Exchange and the Toronto Stock Exchange neither approve nor disapprove 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.

Alan P. Lindsay

Chairman and Chief Executive Officer

1-800-563-7939

or

AZCO Mining Inc.

Anthony Harvey

Vice Chairman and Executive Vice President

1-800-563-7939

or

AZCO Mining Inc.

Paul Lathigee

Vice President Investor Relations 

1-800-563-7939