Agau Resources and Kenneth Richardson Announce Preliminary Fire Assays.

EDMONTON, Alberta--(BUSINESS WIRE)--Oct. 2, 1996--(Alberta Stock Exchange:AGS.) At the request of The Alberta Stock Exchange, as a corporate update AGAU RESOURCES, INC. (the "Corporation") and KENNETH RICHARDSON ("Vendor or Richardson") announce that preliminary fire assays on samples taken from properties near Lac La Loche in the Clearwater Region of northwestern Saskatchewan are currently being completed. The Corporation previously announced that on September 10, 1996 it had entered into a letter of intent to acquire 2 claim blocks, Saskatchewan ("CBS") in the Clearwater Region of northwestern Saskatchewan from Richardson. The CBS contains 7,120 hectares (17,593 acres). In consideration for the 2 CBS, the Corporation will issue up to a maximum of 2,500,000 shares at a deemed value of $0.20 to the Vendor. The exact consideration payable to the Vendor will be determined by an independent geological report.

The Corporation is a junior capital pool company and the acquisition of the 2 CBS is intended to constitute the Corporation's Major Transaction pursuant to Policy 4.11 of the Alberta Securities Commission and Circular No. 7 of The Alberta Stock Exchange. As such, the transaction is subject to the approval of The Alberta Stock Exchange and the Corporation's shareholders.

Prior to entering into the letter of intent, Richardson had completed approximately 323m (1059 ft) of drilling in two holes which established the following geological succession: -0-

Upper Glacial Till 0-49m Lower Glacial Till 49-98m (reworked Mannville) Upper Mannville (Cretaceous) 98-134m Lower Mannville (Cretaceous) 134-165m

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In addition, 84 shallow holes aggregating 2,460m (8,100 ft) were drilled in the fall of 1995 and spring of 1996.

Fire assay work is continuing and further information will be released as it becomes available.

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NOTE TO EDITORS: THE ALBERTA STOCK EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED THE INFORMATION CONTAINED HEREIN.

CONTACT: AGAU RESOURCES, INC.

Einar Myrholm, 403/413-9392

403/496-9307 (FAX)

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