Abacus Minerals: Drilling Encounters Further High Grade Results at La Manchuria.

VANCOUVER, B.C.--(BUSINESS WIRE)--June 17, 1998--ABACUS MINERALS(VSE:AMC.) Abacus Minerals Corporation is pleased to announce additional high grade interceptions from the second stage drilling at La Manchuria. All holes continue to be highly anomalous throughout their length confirming the presence of a large system enriched in both gold and silver.

The majority of the second stage drill holes targeted the portion of the system indicated by drill hole LM98-2 (58.5 metres grading 6.53 g/t gold, 22.3 g/t silver) as reported on April 29, 1998. Significant results from these holes are summarized below. -0-

Drill    From     To    Interval   Au      Ag     Au Equiv.
Hole      (m)     (m)      (m)    (g/t)   (g/t)  (50:1 conv.)

98-8     33.05   36.55     3.5     0.73  137.07      3.47
98-9     34.0    88.6     54.6     4.46   12.14      4.70
 incl.   79.9    88.6      8.7    24.88   11.30     25.08
98-10     3.04   97.5     94.46    0.74  104.56      2.83
 incl.    3.04   13.54  10.5     1.33    2.94      1.39
 incl.   45.04   57.04    12.0     1.45  418.54      9.82
 incl.   87.85   97.5      9.65    1.82  449.84     10.81
98-11   106.0   120.5     14.5     5.10   56.67      6.23
98-12     4.5     9.0      4.5     0.25  354.30      7.33
 incl.    24     67.5     43.5     1.27   22.75      1.72
 incl.   39.0    57.0     15.0     2.28   26.14      2.77

(x) Au and Ag values are uncut

Results are variable throughout these intersections (with individual assays up to 159.98 g/t gold/1.30 metres and 5281.8 g/t silver/ 0.65 metres) reflecting the apparent multi-stage mineralizing sequence and type of mineralization. Due to the early stage and limited understanding of the deposit, results have been averaged over widths indicated by geological interpretation and values. No values have been cut nor have economic cut-off grades been applied.

Geologically, mineralization is hosted in a large epithermal sheeted vein and/or stockwork system contained within rhyolitic and andesitic volcanic units. High grade shoots are typical of epithermal deposits. The majority of mineralization is hosted within the upper sequence of rhyolitic volcanics. However, the latest drilling has confirmed the continuation of mineralization and veining into the underlying andesitic volcanics. Drill hole LM98-10 ended in veined and altered andesite grading 0.81 g/t gold and 374.3 g/t silver over 1.03 metres and drill hole LM98-8 yielded an interval within andesite 7.5 g/t gold and 70.5 g/t silver over 1.50 metres. Company geologists believe that mineralized feeders may underlie the mineralization encountered in drilling. Preliminary petrographic work shows the presence of native gold, native silver and pyrargyrite (Ruby Silver) contained within the veins and veinlets of the stockwork. The system contains minimal sulphides with the pyrite content estimated to range from trace to 2 percent.

Drill holes LM98-1 and 2 and the results reported above represent a 250 metre strike length to a depth of 100 metres open in both directions on strike and to depth. Geochemical and geophysical anomalies indicate excellent potential to expand the zone.

In the Phase II drill program, only LM98-13 tested an outside target (500 metres east of LM98-2). Results were very encouraging with 4.80 g/t gold, 1.45 g/t silver over 3.0 metres, as well as other highly anomalous values. In addition, numerous other geochemical and geophysical targets elsewhere on the property have yet to be tested.

In conjunction with ongoing evaluation of the La Manchuria prospect, a magnetometer geophysical survey was recently carried out in an attempt to help delineate possible structural controls to mineralization. As well, an extensive clay alteration study is in progress which could potentially locate prospective precious metal mineralization.

Abacus is extremely pleased with these results at this stage of the project's development. Numerous examples of large epithermal deposits are known worldwide. The closest of these to La Manchuria is Anglo American's Cerro Vanguardia Mine. Cerro Vanguardia is located 80 kilometres to the east of La Manchuria and hosts 3.80 million ounces of gold and 35.0 million ounces of silver.

Upon completion of the above data evaluation, a decision will be made as to the timing of resumption of drilling at La Manchuria.

ABACUS MINERALS CORPORATION Steve L. Todoruk, P.Geo., President

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               Steve L. Todoruk, P. Geo, 604/682-0301 or
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     INDUSTRY KEYWORD:  MINING/METALS