Argentina Gold Partial Results Received From First Diamond Hole Show Substantial Increase In Gold Grades.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Jan. 24, 1999--

ARGENTINA GOLD (VSE:ARP.) DDA1 RETURNS (PARTIAL): 31 M OF 42.25

G/T GOLD AND 42.61 G/T SILVER (INCL: 19 METRES OF 61.91 G/T GOLD

AND 50.15 G/T SILVER) STILL DRILLING - FURTHER RESULTS PENDING

RC HOLE 103 IN SOUTHEAST AMABLE RETURNS (PARTIAL) 119 M OF 3.97

G/T GOLD AND 27.6 G/T SILVER (INCL. 81 M OF 4.85 G/T GOLD AND

29.2 G/T SILVER AND 43 M OF 6.87 G/T GOLD AND 33 G/T SILVER)

Argentina Gold Corp. (the "Company") is pleased to announce the first assay results in for Diamond Hole DDA1. Results are available down to 100 metres. Also announced are partial results for Hole 103 drilled at the southeastern extension of the Amable target. A conference call will be held with Mr. Patricio Jones, President, Mr. Lukas Lundin, Director and Mr. Ricardo Martinez, Exploration Manager. The date, time and numbers to call are listed below.

FIRST DIAMOND HOLE INDICATES SIGNIFICANT INCREASE IN GOLD GRADES

AT AMABLE TARGET

DDA1 is the first diamond (core) hole drilled at the Veladero project and has returned partial results to date of 31 metres (from 69 to 100 metres) of 42.25 grams per tonne gold and 42.61 grams per tonne silver, including a 19 metre interval of 61.91 grams per tonne gold and 50.15 grams per tonne silver.

These exceptional results confirm the existence of extremely high grade gold zones within the Amable target.

The hole is being drilled from the same platform as Hole 90 along the eastern flank of the Amable target with an angle of 55 degrees and an azimuth of 270 degrees (drilled in a westerly direction). The objective of this hole is to test the high-grade section intercepted by Holes 90, 80 and 85 which were drilled using a reverse circulation (RC) rig. Please see attached maps. (1) As was anticipated, given the nature of the free gold observed in chip cuttings (crushed rocks that usually measure 1/10 to 1/2 of an inch in diameter), the diamond core sample results (each 1 metre interval) reflect a higher gold grade apparently due to the better conservation of all finer materials, especially those oxide-rich crusts that rim the open fractures in the hydrothermal breccias of Amable. The intensity of the silicification produces a highly brittle rock that is strongly crushed by the reverse circulation drilling (using tricone bits) and the intensity of the air pressure pushes the finer particles into the open spaces within the hole. Details of the partial results available on Hole DDA1 are in the following table.

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          Current                                    Gold
Hole      Depth  Interval  From  To   Gold   Silver  Equiv.
           (m)     (m)     (m)   (m)  (g/t)   (g/t)  (g/t)(2)
DDA1
(partial results)
          234      31       69   100  42.25   42.61   43.10
    including      19       81   100  61.91   50.15   62.91

Hole    Azimuth   Angle        Coordinates

DDA1
(partial results)
          270     -55          2407695 E
                               6750442 N
                               Elev: 4352

(2) 50 g/t Ag = 1 g/t Au

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All results, as with every hole drilled at Veladero, will be subjected to re-checking and verification.

At the reported depth of Hole DDA1, the results closely correlate with the 34 metre section of Hole 80 (from 76 metres to 110 metres) which averaged 10.2 grams per tonne gold. The comparison between these two sections indicate a significant increase in the grades previously reported and further diamond drilling may result in a substantial increase of the reported high grade resources at the Amable target.

Further results from Hole DDA1, anticipated within the week, will allow a more comprehensive correlation of the long mineralized intervals reported for Holes 80 and 90.

RC HOLE 103 INDICATES CONTINUITY OF HIGH-GRADE MINERALIZATION AT

SOUTHEAST AMABLE

Partial results available on Hole 103, collared 50 metres east of Hole 96, show continued high-grade mineralization at the southeast zone of the Amable target.

The interval currently reported for Hole 103 is 119 metres of 3.97 grams per tonne gold and 27.6 grams per tonne silver, including 81 metres of 4.85 grams per tonne gold and 29.2 grams per tonne silver, and including 43 metres of 6.87 grams per tonne gold and 33 grams per tonne silver.

Details of the partial results for Hole 103 are in the following table:

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          Total                                       Gold
Hole      Depth  Interval  From  To   Gold   Silver   Equiv.
           (m)     (m)     (m)   (m)  (g/t)   (g/t)  (g/t)(2)
103
(partial results)
           350     119     146   265   3.97   27.60   4.52
     including      81     184   265   4.85   29.20   5.43
     including      43     184   227   6.87   33.00   7.53

Hole    Azimuth   Angle        Coordinates
103
(partial results)
          270      -75          2407744 E
                                6750391 N
                                Elev: 4330

(2) 50 g/t silver = 1 g/t silver

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Drilling continues along the eastern extension of the Amable target.

Hole 105, collared 50 metres east of Hole 90, is complete with assays pending.

Hole 106, collared 60 metres SSE of Hole 103, is also complete with assays pending.

Hole 106, collared 10 metres east of Hole 80, drilling vertical, is testing potential deep continuity of high grade zones.

DRILLING CONTINUES AT WESTERN EXTENSION OF HIGH-GRADE ZONE OF

FILO FEDERICO

Reverse circulation drilling is underway at western Filo Federico to continue testing for expansion of the possible starter pit zone of the Filo Federico resource. A high grade (above 3 g/t gold) sector has been defined at western Filo Federico and extension of this sector westward towards the 400,000 ounce gold resource at the NW target will be tested in several holes planned for this area.

Hole 104, collared 50 metres southwest of Hole 98, is complete with assays pending.

Hole 107, collared 50 metres southwest of Hole 104, is complete with assays pending.

Hole 109, collared 50 metres SSW of Hole 72, is underway.

Given the exceptional results received to date from Hole DDA1 at the Amable target, a second diamond drill rig will be brought up to the Filo Federico target.

CONFERENCE CALL

We invite you to participate in a conference call on Tuesday, January 26th which will provide further information on the drill results from our first diamond hole, DDA1, and the significance of these results to the Veladero project.

Date: Tuesday, January 26, 1999

Time: 2:00 p.m. eastern (Toronto time).

Please call one of the following numbers 5 to 10 minutes before the start of the call: 1-800-997-8505 (toll free within North America) or 416-620-3751

Following the presentation, the lines will be opened for your questions. Please see attached maps for reference during the call.

A taped replay of the call will be available. Please call 1-800-558-5253 (toll free within North America) and enter the password: 1613387 or 416-626-4150 (no password needed).

A summary of all drill results to date for the 1998/1999 season is in the attached table.(1)

Please visit our website for maps and detailed information on the Veladero project. The website address is www.argentinagold.com

Argentina Gold is the operator of the Veladero project holding a 60 percent interest. The Company's partner, Barrick Gold Corp., holds the remaining 40 percent. The drill samples are being assayed by CIMM Labs of Chile using top quality control systems and interlab check assays.

ON BEHALF OF THE BOARD J. Patricio Jones, President

Notes to Editors:

(1)Location maps and summary drilling tables are available from the company at the telephone number listed in the contact information.

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