Amended news release for Cayo Resources: reorganization; acquisition of Alberta Diamond Exploration Properties.

VANCOUVER, British Columbia--(BUSINESS WIRE)--April 28, 1997--CAYO RESOURCES INC. (OTC Bulletin Board CAYO ) CAYO Resources Inc. has acquired a new asset and is presently completing its reorganization.

Alberta Properties - Buffalo Head

CAYO has acquired a 40 percent interest in Metallic Mineral Exploration Permits covering approximately 23 million acres in the Archaean Buffalo Head Craton in northern Alberta. The remaining 60 percent interest is held by a joint venture of Pure Gold Resources Inc. (T.PUG - 9 percent), Ashton Mining of Canada Ltd. (T.ACA - 25.5 percent) and Alberta Energy Corporation (25.5 percent). Some of these claim areas are contiguous with the Pure Gold/Ashton/Alberta Energy Buffalo Hills Joint Venture. The property is subject to a 2 percent Gross Overriding Royalty in favor of the staker.

A detailed airborne survey is planned for the near term. Previous airborne surveys have shown geophysical anomalies similar to those showing the kimberlites discovered on the Buffalo Hills Joint Venture property, which have been found to be diamondiferous. (Ashton Mining of Canada Ltd. news release, April 25, 1997). Ashton Mining is the operator of the project.

Alberta Properties - Edmonton Project

CAYO has also acquired a 50 percent interest in Metallic Mineral Exploration Permits covering approximately 9.3 million acres in east-central Alberta, covering an area roughly from Lake Wabamun to the Saskatchewan border. Although essentially unexplored, this property is believed to be within a kimberlite-lamproite province, and a local prospector has reported the discovery of one 0.392 carat diamond and 16 smaller diamonds during recent gravel sampling in the banks of the North Saskatchewan River within the Edmonton Project.

A review of all available airborne geophysical data is planned, based on data recently flown by the Government and by the petroleum industry. A field evaluation and preliminary sampling program are also indicated.

Board of Directors

The Company's new board of directors is as follows:

Hendrik van der Walt, President and Director. Mr. van der Walt is a Vancouver-based businessman and accountant whose experience includes corporate accounting and audit management in South Africa.

Wilfred (Wilf) Jones, Director/ Vice-President Exploration. Mr. Jones is a diamond geologist having extensive credentials in diamond exploration and discovery with Selection Trust and Ashton Mining Limited. Throughout his career, Mr. Jones has been credited with finding a number of economic alluvial and kimberlite diamond deposits, including the Argyle Pipe in the Kimberley area of Western Australia, owned 40 percent by Ashton Mining of Australia.

Gregory Harris, Director/Secretary. Mr. Harris is a Calgary-based securities lawyer who will be responsible for overseeing the Company regulatory matters. Financing

The Company is in preliminary discussions with financial institutions and expects to announce a sponsoring broker and financing plans within the next two weeks. Other Matters

The Company intends to make application for listing on the Alberta Stock Exchange. Currently, shares in the Company trade over-the-counter and are reported via the Canadian Dealing Network, Inc.

As a result of the recent sale of substantially all of the Company's former controlling shareholder's position, the Company is aware of no person or entity which beneficially owns or exercises control over greater than 10 percent of the Company's outstanding common shares.

CONTACT: CAYO Resources Inc.

Hendrik van der Walt, 604/ 687-0300