Additional properties under review in Mozambique; tax-free zone under consideration by government to attract industry to Mozambique.

VANCOUVER, British Columbia--(BUSINESS WIRE)--March 24, 1997-- Leopardus Resources Limited (the "Company") is pleased to announce that it is currently in the process of reviewing, with industry partners, three additional oil and gas prospects located in the Republic of Mozambique.

Two of these prospects, Sofala and M-10, comprise a total of 2,001,543 acres located immediately offshore from the Company's Buzi-Divinhe Permit Area.

These properties are held according to a Technical Evaluation Agreement ("TEA") dated effective Nov. 1, 1996 between Zarara Petroleum Resources Inc. ("Zarara") ARCO International Oil and Gas Company ("ARCO"), JCI Ltd. ("JCI"), the government of Mozambique, and Empresa Nacional de Hidrocarbonetos, ("ENH") the state oil company. Zarara has agreed to assign all its rights, title and interests in these properties to the Company on execution of a formal Production Sharing Agreement ("PSA") with the Republic of Mozambique.

Under the Technical Evaluation Agreement, ARCO, Zarara and JCI have agreed to conduct certain technical evaluation and commercialization studies with respect to the Temane, Sofala and M-10 Blocks, to determine petroleum prospectivity of these areas and market opportunities for the commercial use of gas, including iron ore production and mineral beneficiation, as previously announced with respect to the Temane Permit.

ARCO and Zarara were granted the exclusive right to negotiate a PSA with the Mozambique government and ENH with respect to these areas for an 18 month term commencing Nov. 1, 1996, on terms specified in the Technical Evaluation Agreement, which include commercial terms for the proposed PSA which are similar to those under the PSA for the Buzi-Divinhe Permit currently held by the Company.

These properties were the subject of meetings held in Plano, Texas in February 1997 between representatives of all parties to the Technical Evaluation Agreement, and attended by the Minister of Mineral Resources and Energy of the Republic of Mozambique as well as representatives of the Company.

On completion of the acquisition of Zarara's interest in M-10 and Sofala, the Company will assume all rights and obligations under all agreements entered into by Zarara with respect to these properties.

In addition, the Company has filed an application with the Ministry of Mineral Resources and Energy for a third exploration prospect in Mozambique which comprises approximately 500,000 acres located in an area that is considered highly prospective for oil. The Company is currently in discussions with a major industry partner with respect to participating with the Company in this prospect; material developments will be disclosed if and when they occur.

As part of its ongoing market development activities, the Company is currently in the process of negotiating with the Government of Mozambique for the establishment of a tax free zone at the port city of Beira, located 35 kms from the Company's Buzi natural gas field. This free trade zone, to be managed by Leopardus Resources Limited, will provide tax concessions designed specifically to encourage manufacturing industries to locate in Beira.

Based on the prospect of these incentives, the Company has entered into preliminary negotiations with a number of significant international companies that have expressed an interest in locating new facilities in Mozambique to take advantage of these concessions.

If they choose to locate in the Beira free trade zone, these companies will require significant daily volumes of natural gas for energy and power generation, creating significant demand for the Company's existing natural gas resources as well as the potential additional reserves that are the subject of the Company's current exploration activities.

Leopardus Resources Limited is an international oil and gas exploration and development company. As part of its ongoing activities, the Company is participating with major industry partners in developing the resources and infrastructure necessary to serve the natural gas markets in South Africa, Zimbabwe and Mozambique.

On behalf of the Board of Directors of LEOPARDUS RESOURCES LIMITED

Stuart W. Rogers Director

CONTACT: Leopardus Resources Limited

Bill Jasper, 800/963-0154

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