Aranlee Commences Drilling in Argentina.

SCOTTSDALE, Ontario--(BUSINESS WIRE)--Oct. 29, 1996-- ARANLEE RESOURCES LTD. (VSE: ARB.) Aranlee Resources Ltd. ("Aranlee") is pleased to announce that drilling commenced this week in northwest Argentina, where the Company holds an option to obtain a 100 percent interest in 8 properties covering over 300 sq km in an emerging new precious metals/copper belt.

Since December of last year, two geologic teams have been conducting surface exploration on these properties, with work including geological mapping, trenching and extensive surface sampling. From this work, drill targets at three of the eight properties have been identified and are scheduled to be tested with this initial drill program.

Surface exploration work continues at the remaining five properties. Each of the three properties to be drilled, CHINCHILLAS, CENTENARIO and EL OCULTO, are large porphyry systems that exhibit impressive areas of alteration with elevated concentrations of base and precious metals. There is also evidence that rock exposures at a number of the properties represent leached cappings which may overlie widespread ore-grade mineralization.

An initial program of 2,000 to 2,500 meters in 18-20 reverse circulation drill holes (to depths of 100 to 150 meters) is planned for the three properties and is expected to be completed in December with results available in early 1997.

At the CHINCHILLAS property in northern Jujuy province, over 1,200 meters of trenching and underground sampling, covering an area of approximately 2 km by up to 350 meters, have identified strong evidence of surface leaching of silver, lead and zinc mineralization within a volcanic complex.

Surface rock sample values of the order of 0.1 percent-0.5 percent lead and zinc and 5 g/t silver are reported, with 4-10 times higher values 15-20 meters below surface in existing workings (these samples average 2 percent zinc, + 1 percent lead and 50 g/t silver). Individual samples of hydrothermal breccias carry values up to 15 percent zinc, 3 percent lead and 252 g/t silver.

Surface gold values are generally low, with the drill program designed to test the possibility of higher gold values at depth below the enriched silver/lead/zinc zone. This is a similar geologic model to Barrick Gold/Pacific Rim's Diablillos deposit, located further south, where gold mineralization (in excess of 1.0 g/t) was encountered at depths of 50-60 meters below a silver- enriched zone, with little or no gold at surface. The initial program will test two large surface anomalies, an eastern anomaly measuring 325 by 150 meters and a western anomaly measuring 250 by 125 meters.

At CENTENARIO, located to the south in Salta province, over 650 meters of trenching on a prominent ridge (North Centenario) has exposed extensive multi-phase brecciation, stockwork veining and silicification in the oxidized zone of a strong epithermal system within a large porphyry complex. The presently known anomalous area is widespread and covers approximately 330 by 150 meters but may be more extensive under the surrounding shallow alluvial cover, as indicated by a 1,000 by 300 meter geophysical (IP) anomaly.

Gold values generally range from 100-400 ppb in the central part of this area with coincident copper anomalies from 50-150 ppm. Initial drilling will test the North Centenario anomaly, with possible follow-up drilling on several large altered areas in South Centenario.

A surface rock sampling grid covering 1,500 by 400 meters in the central part of the EL OCULTO property carries gold results generally in the 50-250 ppb range, with individual rock chip values up to 1.8 g/t. This central zone is also highly anomalous in copper, lead, zinc, silver and antimony in addition to gold. The anomalous values are contained within an intrusive complex containing stockworks, sheeted veins and breccia pipes, indicating the presence of a strongly mineralized hydrothermal system.

The initial drill program will yield a preliminary assessment of the potential of the area. Future drilling on Aranlee's five other properties will be evaluated on a case-by-case basis following a full assessment of sampling results and a comprehensive geologic interpretation. The Company is also actively pursuing other acquisitions within this emerging new precious metals/copper belt, where exploration activities by major and junior mining companies are intense.

In addition to Aranlee's properties in Argentina, the Company has a 50 percent interest in 1,565 claims on 17 properties in the Voisey's Bay region of Labrador, Canada. Results from field work completed this summer, including detailed exploration on the Staghorn Lake area, will be released shortly. The Company has 15.7 million shares issued and 17.7 million on a fully diluted basis.

NOTE: Location map available from the Company at the phone number listed below.

ON BEHALF OF THE BOARD Stephen J. Kay, Vice President and CFO -0-

The Vancouver Stock Exchange neither approves nor disapproves the information contained in this News Release.

CONTACT: Aranlee Resources Ltd.

Jim Kasten, 602/951-4870, 602/483-9926 (FAX)

INTERNET: http://www.aranlee.com/arl/

E-MAIL: [e-mail]