Arequipa Resources - Pierina test pit assay results.

VANCOUVER, BC--(BUSINESS WIRE)--Jan. 8, 1996--Arequipa Resources Ltd. ("Arequipa" or the "Company") is very pleased to announce assay results from the PIERINA prospect in Ancash province of northern Peru. To date assay results have been received on 14 test pits which each averaged slightly over three meters in depth within an area 500 meters by 150 meters. The test pits were dug in order to test the main mineralized zone in the shallow subsurface, and to determine if surface enrichment exists.

Eleven of the pits were completed in bedrock and three were completed in colluvium. The weighted average grade of the 21 samples from bedrock was 6.84 g/t gold and 31.7 g/t silver, the average of the 8 samples from colluvium was 15.40 g/t gold and 47.0 g/t silver. The overall average of all 29 samples was 9.47 g/t gold and 33.8 g/t silver. Assays as high as 43 g/t gold and 155 g/t silver were obtained. Minus 10-mesh splits of the samples were analyzed by two independent laboratories, and the gold results agree by an average of 91 percent.

The mineralization encountered in the pits is disseminated, and no vein structures were noted, although the possibility of vein structures elsewhere on the property remains to be investigated. The test pit results do not suggest surface enrichment and only one pit encountered mineralization of less than 1 g/t gold.

Reconnaissance surface sampling had previously identified an arcuate zone of disseminated mineralization 600 meters long by 150 meters wide. Most surface samples from the zone contained more than 0.5 grams per tonne gold, the average of the 97 surface samples from the zone was 1.59 grams per tonne gold. Several outlying anomalous zones also exist.

A tunnel to test the mineralization at deeper levels has been started, and several more test pits are planned. Preparations for construction of a 5 kilometer access road, in anticipation of drilling, continues.

The host rock is silicified, alunitized, and highly leached tuff and ignimbrite of the Calipuy Formation, the same formation that hosts Newmont's 8 million ounce Yanacocha deposit. The volcanics are underlain by Mesozoic limestones, quartzites, and shales.

Arequipa controls mineral rights on 44,000 hectares with similar geology in the vicinity of PIERINA. In addition, the Company controls mineral rights on 28,000 hectares covered by the Yungay Formation, which is younger than the Calipuy. It is known to contain gold mineralization with alteration and geochemical characteristics similar to PIERINA on Arequipa's California IV prospect and other prospects controlled by Arequipa. Regional exploration in both these districts is continuing.

Arequipa's shares trade on the Toronto Stock Exchange under the symbol AQP.

ON BEHALF OF THE BOARD OF DIRECTORS

Ms. Catherine McLeod President

CONTACT: Arequipa Resources Ltd.

604/684-0003