Arauco Resources Corporation - Exploration Update.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Jan. 17, 1996--ARAUCO RESOURCES CORP.(VSE: ARU) Mr. Donald A. McLeod, President of Arauco Resources Corporation (VSE:ARU) today announced the resignations of Patrick Burns, Peter Marrone and Luiz A.P. Barreto as Directors of the corporation and the closure of the Company's office in Santiago, Chile. This corporate restructuring is intended to preserve the Company's treasury and provide a more focused direction for exploration.

The Company's corporate headquarters in Vancouver, British Columbia will direct future activities and initiate an aggressive property acquisition program. The exploration mandate of the Company has been expanded outside of South America to include North and Central America, as well as, South East Asia. The Company currently holds a number of wholly owned properties in Chile which include the Guindo property, located approximately 240 km south of Santiago and the El Faldeo property, located approximately 30 km south of the village of Cochrane in southern Chile.

Exploration activities on the Guindo property by the Company has included a major trenching program designed to test the continuity, extent and grade of several zones of quartz veining located on the property. Approximately 1450 meters of backhoe trenching have been completed over various targets. The most significant zone, consisting of a series of parallel veins has been traced for 400 metres and is open. Individual veins are up to 6 metres wide. Highlight intersections include 6.0 metres averaging 10.90 grams/tonne gold, 7.5 metres averaging 10.41 grams/tonne gold and 3.0 metres averaging 12.25 grams/tonne gold. A diamond drilling program has been recommended.

Exploration on the El Faldeo property has included the collection of nearly 650 surface samples to delineate three gold anomalous stratiform zones within volcanic mudflows. While much more detailed sampling is required, one of these zones currently measures 200 metres long by 17 metres thick with an initial 10 samples taken from the zone averaging 1.56 grams/tonne gold. The Company is sending an independant geological consultant to Chile to evaluate the significance of Guindo, El Faldeo and other properties within the Company's portfolio and is considering the possibility of a Joint Venture on these projects.

The Company is well funded to carry out an aggressive property acquisition program.

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CONTACT: James D. Romano

Manager - Investor Relations 

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