American Resource agrees to sell 2 million shares of Northern Orion.

GREENBRAE, Calif.--(BUSINESS WIRE)--Feb. 6, 1996--American Resource Corporation Inc. (ARC) (NASDAQ:AREE) announced today that it has agreed to sell 2 million shares of Northern Orion Explorations Inc. (TSE:NNO/VSE:NNO) for a price of approximately US$10.3 million.

The proceeds of this sale will be used to fund ARC's equity requirement for the construction of the company's 100 percent owned San Gregorio gold mine project located in northern Uruguay, proposed exploration programs covering ARC's extensive Uruguayan land holdings and additional working capital needs.

Following the sale, ARC continues to hold approximately 5.4 million NNO shares as an investment.

Under the terms of the proposed merger between Rea Gold Corporation (Rea) (TSE:REO) and ARC, announced on Jan. 10, 1996, ARC shareholders would receive 2.24 Rea shares for each outstanding ARC share, subject to adjustment in the event that the NNO shares held by ARC on Jan. 10, 1996 (and the proceeds of any sale of such shares before the merger) have a value (on a per share basis) that varies (plus or minus) by more than 10 percent from their value on Jan. 10, 1996 (CDN $4.62).

The proposed merger is subject to a number of contingencies and no assurance can be given that the merger will be consummated, or if consummated, that the proposed exchange ratio will be as described.

CONTACT: American Resource Corporation, Greenbrae

Stephen N. Anderson, 415/461-6868 (office)

415/776-6499 (home office)