Argentina Gold Corp. - New Trench Results at Veladero and Commencement of Drilling Program at Rio Frio.

VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--May 8, 1997-- Argentina Gold Corp. (VSE:ARP.) Argentina Gold Corp. (the "Company") is pleased to announce that gold anomalous sections have been identified at the Veladero Filo Federico target. Trench 65 intersected an area of 30 metres containing 1.24 grams per tonne gold (in 5 metre chip samples). The section corresponds with the border of a CSAMT geophysical anomaly and a conceptual drill hole will test the vertical extent of this anomaly. Trench 68 identified a colluvium gold anomaly comprising 250 metres of 0.368 grams per tonne gold (including 50 metres of 1.140 grams per tonne gold). This section is at the flank of a major CSAMT anomaly on the eastern side of the Filo Federico target. The trench results open large target expectations for Filo Federico as the CSAMT geophysical anomalies are being reinforced with geochemical anomalies.

The Veladero drilling program is continuing with approximately 2,150 metres completed to date. Further results will be reported as soon as available. Drilling will continue as weather permits.

Barrick Gold Corporation continues drilling at Del Carmen with approximately 1,000 metres completed to date. Results will be reported as soon as available.

WMC Limited has recently commenced a 2,000-3,000 metre drilling program at the Regalito and Guanaco Zonzo targets within the Rio Frio claim block. The two targets are on the western boundary of the Rio Frio property near the border of Veladero. Results will be reported as soon as available. Please see attached map.

ON BEHALF OF THE BOARD

J. Patricio Jones, President

NOTE: Location map available from the Company at the phone number listed below.

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

CONTACT: Argentina Gold Corp.

Sophia Shane, 604/689-7842