Argentina Gold Receives Positive Technical Review from Newmont.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Jan. 4, 1999-- Argentina Gold (VSE:ARP) -- Argentina Gold Corp. ("ARP") is pleased to announce the results of a technical review (Phase I) of the Veladero project conducted by Newmont Overseas Exploration Limited ("Newmont").

Newmont was contracted by ARP to provide a technical review of the Veladero project in San Juan province, Argentina. The purpose of the work was:

- To assess the drill and drill sample methods. Make recommendations to improve sample quality, drill productivity or reduce drill costs.

- To check/verify new drill results through collection, preparation and analysis of duplicate samples for two holes.

- To check previously reported drill results through preparation and analysis of coarse reject from portions of five holes.

- To verify the presence of gold in the system by collection and analysis of surface, rock chip channel samples. These samples were collected from three areas where "ore-grade" gold concentrations were previously detected by Argentina Gold.

- To describe the nature of the gold occurrence through microscopic examination of select high grade drill samples.

The executive summary and conclusions of the report follows:

Executive Summary

"The reverse circulation drill program, though high cost, is efficient and geared to collection of a high quality sample. Few comments can be made to improve the drill operation or the sample and sample preparation techniques. Evaluation of gold assays from reverse circulation drill cuttings indicates good agreement between samples collected, prepared and analyzed by Argentina Gold/CIMM and duplicate samples independently collected, prepared and analyzed by Newmont/Bondar Clegg. In addition check assays by Bondar Clegg of coarse reject from select intervals in previously drilled holes compare well with Argentina Gold/CIMM results. Sampling of roadcuts by Newmont and analysis of these samples by Bondar Clegg confirms the presence of gold within the Veladero system. Microscopic examination of select high grade drill intervals indicates the presence of liberated/free gold within the mineralized zones. The form of the free gold particles is similar to that of native gold which was observed in place and still within the host rock fragments."

Conclusions

1. "Reverse circulation drilling though high cost is focused on sample quality and not meter productivity.

2. Few comments can be made to improve the drilling operation. Lower costs may be achieved with slight changes including type of tri-cone bit, increased rotational rpm and use of hammer bits.

3. Reverse circulation samples from the two holes observed are judged to be good.

4. Sample preparation is well organized and relatively clean.

5. Results from the two holes observed and for which separate duplicate samples were collected, prepared and analyzed show acceptable comparisons. Bondar Clegg gold results generally are slightly higher than the ARP results but that difference is not great (2-10 percent on the average).

6. Results from the check assays of coarse reject from previously drilled holes compare well with the ARP data. It is acknowledged that the material analyzed was not "pristine" as it had been handled and stored prior to this study; however, the results are similar to those reported by ARP.

7. Results from the surface sampling indicate the presence of gold in the system. Though a direct comparison with ARP results was not possible, the values are generally similar.

8. Mineralogical examination of high grade samples indicates that liberated/free gold is present. The liberated gold is similar in form to gold noted within the rock and appears to have been derived from the rock within the system."

Phase II of the technical review, which will provide for limited metallurgical testwork, is being completed by Hazen Research, Inc. of Golden, Colorado and results will be reported as available.

In addition, further drill results are expected this week. Hole 97, located 45 metres SSW of Hole 94 is complete with assays pending. Hole 98, testing an area between the NW target and the Filo Federico target is also complete with assays pending.

Hole 99, located 85 metres west of and in section with Hole 85 is nearing completion and Hole 100, testing the Amable North target (between Amable and Filo Federico), is also near completion.

The Company expects to soon bring a second diamond drill rig on the property, bringing the total rigs in operation at Veladero to four.

ON BEHALF OF THE BOARD J. Patricio Jones, President

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