Argosy Finalizes Agreement With Norilsk.

Business Editors

CALGARY, Alberta--(BUSINESS WIRE)--Oct. 18, 2001

Argosy Minerals Inc. (CDNX:AGY.) (ASX:AGY.), through a wholly owned subsidiary, has now finalized the previously announced agreement with a wholly owned subsidiary of the group Norilsk Mining Company, and Societe des Mines de la Tontouta (SMT) in a tripartite venture for the development of the US$800 million Nakety / Bogota project in New Caledonia.

Argosy is pleased to announce the broad terms of the agreement which was signed in Paris on 16th October, 2001.

Norilsk Mining Company is the world's leading refiner of nickel and palladium and a major global producer of copper, cobalt and other platinum group metals.

Under the terms of the Agreement, Norilsk will reimburse Argosy 45% of its sunk costs to date, some US$7.166 million, within ten days of signing the agreement. Thereafter Norilsk has the ability to earn a 45% stake in the project by completing the bankable feasibility study to international standards over two years. The cost of the Bankable Feasibility Study has been estimated at US$15 million, which includes additional resource / reserve drilling on the Bogota concessions. Bateman Engineering in Australia, in conjunction with Norilsk's GipproNickel Institute in St Petersburg will complete the bankable feasibility study.

As agreed, Norilsk can then sequentially increase its stake in the project by making an additional payment to Argosy of US$17.5 million and providing the banking guarantees necessary to secure financing for the project within a further year. Achieving these milestones would increase Norilsk's interest to 70% of the project.

Thereafter, an additional payment to Argosy of US$12.5 million, plus a final payment of an agreed 20% of the Net Present Value of the project, will result in Norilsk earning a 90% stake in the project, with SMT holding the remaining 10%.

Argosy will continue to look at new opportunities in the resource sector, to take advantage of its strong cash position and maintains its interest in its other projects.

On Behalf Of The Board

Peter H Lloyd, Chief Executive Officer

Cautionary Statement

This News Release includes certain "forward-looking statements" within the meaning of Section 21E of the U.S. Securities and Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Argosy, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Argosy's expectations are disclosed under the heading "Risk Factors" and elsewhere in Argosy's documents filed from time to time with the the Australian Stock Exchange, the United States Securities and Exchange Commission and other regulatory authorities. All subsequent written and oral forward-looking statements attributable to Argosy or persons acting on its behalf are expressly qualified in their entirety by this notice.