Altai acquires nickel-cobalt property in the Phillipines.

TORONTO--(BUSINESS WIRE)--Jan. 23, 1996--Altai Resources Inc. (ATI: TSE) has agreed to acquire a 40% working interest plus a royalty of 10% of Sales proceeds (Net Smelter Return Royalty) in a lateritic nickel-cobalt property in the Philippines.

The 4,160 acre property is located in Sibuyan Island on the tidewaters of the Visayan Sea.

The laterite deposit was explored in the past by Santa Barbara Development Corporation of the Philippines, Pacific Metals Co. of Japan, and Mitsui Mining and Smelting Co., a major Japanese mining company. Approximately 2.7 million dollars are reported to have been spent by the above companies on exploration, drilling and trenching. Mitsui in particular conducted detailed work on portions of the property.

Based on 431 drill holes and pits, Mitsui calculated reserves of 7.2 million tonnes at 1.61% nickel (at a cut-off of 1.3% nickel) or 2.7 million tonnes at 1.8 % nickel at a cut-off of 1.5% nickel. The material contains an average of one pound of cobalt per tonne. The higher grade reserves (1.8% nickel) constitute a direct shipping material; the market usually accepts ores of 1.6% nickel or better. The high grade portion of the deposit (2.7 million tonnes of 1.8% nickel) has a per tonne in place value of US$175.

The full potential of the property remains to be determined and additional exploration will likely expand the reserves. In 1996, Altai intends to commission a feasibility study based on already proven reserves. Stripping ratio is expected to be low for this deposit and shipping costs will be minimal due to closeness of the deposit to the sea. These were important factors in Altai's decision to acquire an interest in this deposit.

CONTACT: Altai Resources Inc.

Niyazi Kacira, 416/869-1338; Ivan de Souza, 416/944-9132