Ambrex drops option on Paraiba Gold Mine; will develop six adjacent high-grade lode deposits.

TORONTO--(BUSINESS WIRE)--May 13, 1997--AMBREX (CDN:AMBX) Ambrex Mining Corp. today announced that it has permitted its option to lapse for the previously announced plan to acquire the Paraiba Mine in Mato Grosso State in Brazil.

Instead the company has optioned six nearby high grade gold deposits, where independent consultants' estimates contain a minimum of 420,000 ounces. It has also acquired rights to a ball mill and flotation circuit, which could permit start-up of production within four to six months.

William Fisher, president, said the decision not to proceed with acquisition of Paraiba was based on the combination of three key factors. One was a relatively high upfront payment requirement; the second was the currently difficult climate for junior mine financing; and the third was the very low cost of the adjacent property acquisitions and the recommissioning of a nearby mill.

Fisher noted that the company had already acquired option to the rights of the properties and the milling facility as part of its earlier plan to expand Paraiba. In fact, he added, a few other properties are under consideration.

Capital costs to develop production at a rate of some 12,000 ounces per year is estimated at (U.S.) $1.5 million. Cash costs for production are established at (U.S.) $150.00 per ounce or less.

The substantially reduced financing for the company's revised plan for gold production in Mato Grosso State is expected to be arranged quickly. Development work is planned to commence in early June on the first two properties to be mined.

The six newly optioned properties represent individual vein systems within the general Paraiba complex. Each property has been hand mined in the lode over an average strike length of 400 meters. Grades based on sampling by Ambrex average more than 20 grams per tonne.

Four of the properties have shafts which will permit rapid and low cost underground development.

Ambrex specializes in mineral exploration in Brazil. The company has 44.5 million shares outstanding and its shares trade on the Canadian Dealing Network (CDN) under the symbol AMBX. -0-

NOTE TO EDITORS: This release is available at http://www.AmbrexMining.com .

CONTACT: Ambrex Mining Corp.

William Fisher, 416/865-9300

or

Hume, Kieran Inc.

Jon W. Kieran or Olav Svela, 416/868-1079