Arequipa signs letter of intent with Newcrest on its El Ferrol gold property.

VANCOUVER, BC--(BUSINESS WIRE)--SEPTEMBER 5, 1995--AREQUIPA RES.(VSE: AQP ) Arequipa Resources Ltd. ("Arequipa" or the "Company") is pleased to announce that a letter of intent has been signed with Newcrest Resources Inc. ("Newcrest") to explore Arequipa's El Ferrol property in the Republic of Peru.

The property, which totals 4100 hectares, is located in the Yanacocha district of northern Peru. This district hosts several of Peru's largest gold deposits, including Newmont's eight million ounce Yanacocha deposit and Barrick Gold's three million ounce Cerro Corona deposit.

Newcrest, a wholly owned subsidiary of Newcrest Mining Limited, a leading Australian gold company with production of close to 700,000 ounces of gold per year, has interests in several other gold prospects in the Yanacocha district including the Francisco V and VI properties east of and contiguous to the El Ferrol property.

Newcrest will have the option to earn a 49 percent interest in the El Ferrol property by funding Arequipa's underlying option payments and carrying all exploration expenditures to a minimum of $US 1.8 million over 4 years. Newcrest can earn a further 11 percent interest in El Ferrol by producing a bankable feasibility study by the end of the fifth year. Newcrest can extend this period for up to one year by paying Arequipa $US 500,000. Newcrest will also have the right to increase their interest to 65 percent if Newcrest Mining Limited is required to provide its corporate guarantee for Arequipa to secure funding for its share of all development costs.

Subject to the completion of formal joint venture documentation and regulatory acceptance, Newcrest has informed Arequipa that as soon as local access agreements are obtained road building and drilling will commence.

"The El Ferrol joint venture is the first to date on Arequipa's large portfolio of gold prospects. This is in addition to the fifteen copper prospects joint ventured to Asarco, Southern Peru Copper Corporation and Phelps Dodge, that will see several significant copper exploration programs completed over the next four years. Joint venture exploration on the El Ferrol as well as the copper prospects will proceed simultaneously with Arequipa~s own gold exploration at Paron where a 2000 meter phase II drill program is ongoing and California IV where drilling is expected to commence shortly," stated Catherine McLeod, President of Arequipa.

Arequipa Resources Limited is a mineral exploration and development company focused on the acquisition and development of copper and gold properties in Peru. The Company was founded by Mr. David Lowell who is credited with the discovery of the La Escondida deposit in Chile. The Company's shares trade on the Vancouver Stock Exchange senior board under the symbol AQP.

ON BEHALF OF THE BOARD OF DIRECTORS

Ms. Catherine McLeod

President

The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

CONTACT: Ms. Catherine McLeod

President

Arequipa Resources Limited

328-625 Howe Street

Vancouver, British Columbia

V6C 2T6

604/684-0003

604/684-0007 (FAX)