Aranlee Reports Significant Gold and Copper Results in Kazakstan.

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Aug. 26, 1997--Aranlee Resources Lt. (VSE:ARB.) Aranlee Resources Ltd. ("Aranlee") is pleased to announce significant gold and copper results from its exploration program on 3 key prospects within the 9,700 sq. km Agadyr License in central Kazakstan.

These high priority porphyry targets were selected from an initial inventory of 168 prospects and mineral occurrences compiled from a large database accumulated by the State exploration expeditions over the past 50 years. The excellent quality of this mineral database, together with good infrastructure and access, made it possible to quickly generate these promising targets, many with extensive trenching and drilling data:

ZHEKEDUAN -- sampling of old trenches and outcrops reports gold values ranging up to 14.4 g/t gold and 42 g/t silver in stockworked and altered intrusives and sediments over a large area. Additional results are awaited.

ALMALY -- initial sampling from mineralized intrusive rocks reports values ranging up to 1.2 g/t gold, 100 g/t silver and 10.5 percent copper within a 1 km by 300 m area. Within the same area the State exploration expedition estimated a resource of 80 million tonnes at 0.43 percent copper and about 1.0 g/t gold.

KUZHAL -- initial outcrop sampling has outlined a 1.2 km by 0.2 km trend with values ranging up to 2.3 g/t gold and 10 g/t silver in stockworked sediments.

Since the signing of the Letter of Intent with KazMinCo for the Agadyr License in February 1997, Aranlee has established a well staffed exploration office in Almaty, the capital of Kazakstan and a field office in Agadyr (see attached map). Of the 168 mineral occurrences and prospects identified to date, most have been visited since the beginning of the field season in April and 8 of those prospects have been initially selected for immediate follow-up, which is currently in progress. The results are being continuously evaluated in order to identify as early as possible top priority targets for detailed work leading to selection of drill targets for the spring of next year. The current 3 top priority targets are discussed in more detail below:

ZHEKEDUAN PROSPECT

This copper/gold porphyry prospect is located in the northwest corner of the 640 sq km Zhekeduan property (see attached map) and consists of a stockworked granodiorite stock that has intruded an assemblage of altered sediments and volcanics.

- Aranlee's initial, widely spaced rock samples of altered, stockworked intrusives and sediments/volcanics from outcrops and trenches range from background values up to 14.4 g/t gold and 42 g/t silver.

- Extensive zones of quartz-sericite alteration and locally strong stockworks generally correlate well with soil and/or pan concentrate anomalies for gold, copper and molybdenum over an area of approximately 1500 m by 500 m.

- In the northern part of the prospect area a wide-spaced, shallow drilling program (to approximately 100 meters) by the State exploration expedition identified a near-surface 32 m silicified zone with reported values ranging from 0.2 percent to 0.5 percent copper; it is not known at this time if drill samples were analyzed for gold.

- Some 400 m to the southwest a similar drill program intercepted several 1 to 2 meter intervals with gold values ranging from 1.0 g/t to 13.4 g/t gold; these results were not followed up by the exploration expedition.

Overall the mineralization/alteration system on surface covers an area of approximately 2.5 km x 2.5 km. Based on the above data, it appears that the target may be part of a much larger system which is partially obscured by thin surface cover. A more detailed mapping and rock sampling program has been recently completed by the Company (with results pending) in order to more clearly define drilling targets.

ALMALY PROSPECT

This copper/gold porphyry target is located near the northern border of the 550 sq km Nura property (see attached map) and consists of a series of copper-gold prospects and occurrences related to an elliptical (5 km x 2.5 km) granodiorite intrusive hosted by sediments. Based on reports from previous exploration and Aranlee's own preliminary mapping and sampling, the most attractive area is located in the southeastern part of the intrusive where a significant amount of trenching and some drilling was previously done by the State exploration expeditions.

- The copper-gold mineralized zone, approximately 3 km long and up to 330 m wide, displays signs of large, classic copper-gold porphyry system with intense stockworking and visible copper mineralization on the surface.

- Aranlee's surface sampling to date, from outcrops and trenches within fractured granodiorite, has outlined a 1 km by 300 m area with values ranging from background to 1.2 g/t gold, 100 g/t silver and 10.5 percent copper.

- The State geological expedition reported an estimated resource of 80 million tonnes grading 0.43 percent copper (at a 0.3 percent cut- off) with about 1 g/t gold from this area.

- One rock sample of fractured intrusive collected by Aranlee in an area located 1.5 km to the northwest and previously not identified by the State expedition gave a gold value of 1.5 g/t gold, 468 g/t silver and 13.7 percent copper.

KUZHAL PROSPECT

Located near the center of the Nura property this gold prospect consists of several mineralized zones in altered and locally heavily veined and stockworked sediments within a broad contact zone adjacent to a granitic intrusive.

The Company's initial surface sample results from a zone of stockworked sediments has delineated an area (the East Ridge) covering approximately 1,200 m by 200 m with values up to 2.3 g/t gold and 10 g/t silver. Gold values up to 10 g/t in rock samples were reported previously by the State exploration expedition within this East Ridge area. A second, geologically similar zone (the West Ridge) is located approximately 500 m to the west and assays from the initial sampling of this zone are pending.

BALKHASH LICENSE

In addition to the Agadyr License, Aranlee has a pending application for the Balkhash Exploration License, located approximately 30 km south of the Agadyr License (see attached map). At this time, the area is known principally for its porphyry copper deposits, the largest of which is the Miedniy Kounrad Mine which has produced over 2.7 million tonnes of copper from 450 million tonnes of ore at a recovered copper grade of 0.60 percent. The mine is located about 12 kilometers to the east of the Balkhash License. The complete database for Balkhash will be available from the previous State geological expedition programs when the Exploration License is issued. Several specific copper and gold prospects are known in the area.

Marketing efforts have commenced to raise equity funding for the Company by a Toronto-based financial institution and the financing is expected to be completed within the next 6 to 8 weeks. -0-

Note to Editors: Location map available from the Company at the phone number listed below.

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

CONTACT: Aranlee Resources Ltd.

Linda North, 602/596-9911

[e-mail]

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