Altai acquires a high-grade gold deposit in Arequipa region, Peru.

TORONTO, Ontario--(BUSINESS WIRE)--Jan. 11, 1996--Altai Resources Inc. (TSE: ATI) announces that its wholly owned subsidiary, Altai del Peru, has acquired a 70% working interest in a gold property in Arequipa Region, Peru.

The other 30% belongs to three Peruvian nationals who in the event of non-contribution to exploration and development will revert to 1.5% Net Smelter Return royalty.

The property of 2,000 hectares (5,000 acres) herein referred to as Victoria, is located at Oconia Valley within the prolific regional gold belt of Palpa-Nasea-Oconia. The belt hosts numerous gold deposits including the Oconia Gold Mine, the longest continuously operating gold mine in Peru (80 years in continuous operations) located 4 kilometres to the NE of the Victoria property. Oconia, an underground mine, mines narrow gold veins.

A dozen other gold deposits are located within 15 kilometres of the property. The Victoria property is 60 km from the ocean and is accessible by road. The property hosts at least seven known narrow, high grade gold veins. They are nearly East, West trending, subvertical and have a strike length of 300 metres to over a kilometre. Their width along strike vary from 5 cm to 1.2 metres (average 30 cm) and their extension down dip appears to exceed 1,000 metres as can be ascertained from surface exposures and underground workings on the steep slopes of hills bordering Oconia River Valley.

The veins were evaluated in the 1960's by Mining Bank of Peru for the purpose of an operating loan to the owners at that time. The reserve figures below on the five veins which they considered to be most significant are extracted from their report. -0-

Vein           Probable                        Possible
----           --------                        --------
Retama                            262,000 t at 17.32 gr/t (0.54 oz/t)
Simon                             157,000 t at 20.6  gr/t (0.64 oz/t)
Fortuna                           525,000 t at 38.67 gr/t (1.2 oz/t)
Victor                            800,000 t at 22.28 gr/t (0.7 oz/t)
Sauce   216,000 t at 15.92 gr/t   573,000 t at 18.73 gr/t (0.59 oz/t)
------------------------------------------------------------------
Total   216,000 t at 15.92 gr/t  2,317,000 t at 24.44 gr/t (0.76 oz/t)
               (0.5oz/t)
(t = metric tonne)-0-

Possible reserves should be construed only as geological potential. In computing the above reserves Mining Bank diluted the assay results to a width of 60 cm (where the vein was less than 60 cm).

The assays were diluted to a width of 60 cm.

Artisanal Mining has taken place here for decades and is continuing today. Most miners recover their gold by hand crushing followed by amalgamation. It is reported that only one informal minor in the property has a small cyanide heap-leach operation.

Altai del Peru's engineering staff has made preliminary estimates on the economics of mining narrow deposits in this property. Their conclusion is that a vein with an average width of 25 cm and undiluted grade of 10 gr/tonne gold can be mined economically at this location at US$380/ounce gold price and 85% Au recovery. At 12 gr/tonne the payback period was estimated at one year. Ore extraction will be via adits; no shaft is necessary. Capital costs to set up a 150 tonnes/day operation (minimum size) was estimated at C$1.4 million dollars based on contract mining.

Altai del Peru intends to conduct a detailed sampling and surveying program of the property, starting in March 1996, in order to make reliable estimates on development and mining costs.

CONTACT: Altai Resources Inc.

Niyazi Kacira, 416/869-1338 (President)

Fax: [phone]

or

Ivan de Souza, 416/944-9132 (Chairman)

Fax: [phone]