Ag Armeno Mines and Minerals: Corporate Update.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Jan. 11, 1999--Ag Armeno(VSE:AGM.) (OTC Bulletin Board:AROYF) On January 7, 1999 the Supreme Court of British Columbia granted to Ag Armeno Mines and Minerals Inc. ("Armeno") default judgment with damages and costs to be assessed against the Indonesian company PT Pukuafu Indah ("PI"). Armeno filed the Action on October 14, 1998 claiming damages and costs against PI and its principal Jusuf Merukh ("Merukh") for breach of the May 28, 1998 Agreement through which PI and Merukh granted the sole and exclusive option to Armeno to purchase 90 percent of PI (effectively 18 percent in the BATU HIJAU mining project).

On January 11, 1999 Armeno obtained a further Order from the Supreme Court of British Columbia adding Newmont Gold Company of Denver, Colorado ("Newmont") as a Defendant in the Action. Armeno is claiming damages and costs against Newmont for interfering in the performance by PI of the May 28, 1998 Agreement and for inducing PI to breach the Agreement.

The BATU HIJAU mining project is located on the island of Sumbawa in the Republic of Indonesia. PI has a 20 percent interest in the BATU HIJAU mining project. The other parties are Newmont Indonesia Limited, a subsidiary of Newmont Gold Company, as to a 45 percent interest, and Sumitomo Corporation as to a 35 percent interest. Newmont Indonesia Limited is the Manager of the BATU HIJAU mining project.

Presently ranked as one of the largest start-up mining projects in the world, BATU HIJAU contains a resource of 7.25 million tonnes (15.98 billion pounds) of Copper and 16.5 million ounces of Gold. The BATU HIJAU mining project, which is currently at an advanced stage of construction and development, is expected to be completed by October 1999. Production from BATU HIJAU will be in the form of Copper Concentrate and is scheduled to commence in December 1999. It is reported that the BATU HIJAU mining project will produce an average of 245,000 tonnes (540 million pounds) of Copper and 564,000 ounces of Gold annually for a period of 25 years. Furthermore, the projected cash operating costs are in the lowest quartile of world producers.

Armeno is pleased to announce a brokered private placement financing of up to 5,000,000 units at a price of $0.15 per unit to raise $750,000. Each unit shall consist of one common share and one non- transferable share purchase warrant. Each share purchase warrant will entitle the holder thereof to purchase one additional common share in the capital of Armeno at an exercise price of $0.15 per common share if exercised in the first year and of a price of $0.18 per share in the second year. Dominick & Dominick Securities Inc. will act as Agents and will receive a cash commission of 4 percent and broker warrants to purchase up to 750,000 Armeno common shares at a price of $0.15 per share for a period of 12 months. The proceeds of the private placement will be used for general working capital purposes.

On behalf of the Board of Ag Armeno Mines and Minerals Inc.

Bedo H. Kalpakian, President

The information contained herein has neither been approved nor disapproved by any stock exchange on which the company's shares are listed.