Arequipa Resources - Pierina Pitting and Tunnel Assays.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Feb. 27, 1996-- Arequipa Resources Ltd. ("the Company") is pleased to announce results from further underground sampling at the Pierina project in north central Peru. The tunnel is currently being driven to gain information on the geology and mineralization of the deposit at depth. Previous results confirmed grades to 30 meters averaging 3.83 g/t gold. The most recent results are as follows:: -0-

       TUNNEL DEPTH           GRADE
      --------------      -------------
      30 - 32 meters      8.72 g/t gold
      32 - 34 meters      7.60 g/t gold
      34 - 36 meters      6.20 g/t gold
      36 - 38 meters      4.74 g/t gold

Weighted average 3 - 38 meters: 4.52 g/t gold.
Weighted average silver grade is 130 g/t.

The above assays are consistent with a nearby pit which assayed 3.60 g/t gold in bedrock. The tunnel is scheduled to be driven to a depth of 50 meters, at which point it will be 35 meters beneath the surface. As the tunnel progresses it will pass beneath higher grade surface rock of up to 20 g/t, as indicated by surface pits. It is not known at present if this higher grade rock will extend to tunnel level.

A second tunnel has been started in the main mineralized area, approximately 200 meters south and slightly east of the present tunnel, to provide a detailed look at geology and mineralization in a different portion of the deposit. No samples have yet been taken, as the portal is still in colluvium.

The pitting program to date has outlined an area of potentially ore grade outcrop of 25.3 hectares (253,000 square meters) averaging 6.6 g/t gold.

Samples from approximately 22 additional pits have been sent for analysis, however no results are yet available from these. The pits are in the vicinity of the main mineralized area, and were dug to increase the density of information for purposes of planning the upcoming drilling program. Additional pits are currently being dug both in the main mineralized area and in the area 1 to 1 1/2 kilometers to the south, where gold anomalies up to 2.14 g/t were encountered in a reconnaissance pitting program.

Drilling is scheduled to begin in late April or early May.

Arequipa Resources Ltd. is a mineral exploration and development company focused on the acquisition and development of gold and copper properties in Peru. The Company's shares trade on The Toronto Stock Exchange under the symbol AQP.

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CONTACT: Arequipa Resources Ltd.

Catherine McLeod, [phone]

[phone] (Fax)