Argosy Mining Announces Musongati Mining Convention Ratified by Government.

VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--March 17, 1999-- Argosy Mining Corp. (VSE:AGO) is pleased to announce that on March 12, 1999 the National Assembly of Burundi ratified the Mining Convention negotiated by Argosy's wholly-owned subsidiary, Andover Resources N.L., regarding development of the Musongati nickel-cobalt laterite deposits.

Ratification was the last stage of the approval process giving Andover exclusive rights to the deposits. A 3-year exploration license will now be granted.

The Mining Convention is a comprehensive state agreement that not only awards mineral rights to the Company, but sets out a work program and a full taxation framework for a mining operation.

During the 3-year exploration period, geological and engineering studies will be completed, leading to a full project feasibility study. Upon completion of the feasibility study, the agreement provides for the awarding of a mining title known as a Mining Concession. The term of the Mining Concession is 25 years, renewable twice for successive periods of 10 years.

The terms of the Mining Convention are as follows:

-- Andover will perform a staged exploration program including

scoping and pre-feasibility studies that lead to a full

feasibility study. The program will include drilling, ore reserve

estimations, metallurgical testing, infrastructure studies and an

environmental impact study.

-- At the conclusion of a feasibility study, a joint stock

company will be formed in Burundi to operate the project.

The government will retain a 15 percent interest in the new

company.

-- Within 30 days of receipt of project finance for full mine

development, the government will be reimbursed their

previous expenditure of US$8.3 million.

-- A 5-year tax holiday will apply to the project, followed by

a 35 percent income tax rate.

-- Mine equipment, materials and fuels will be tax and duty

exempt.

-- Force majeure and international arbitration provisions

normal to the industry apply.

The Mining Convention provides the project with a well-defined legal and fiscal basis to proceed with exploration and development. It also shows the pro-active role the government is taking toward the development of a broad economic base through strategic foreign investments. Mr. Yale Simpson, CEO of Argosy states, "The importance to Argosy of a state mining agreement for the Musongati project, ratified by the full National Assembly, cannot be under-estimated. In many developing nations, the rules governing mining and foreign investment are inadequate and discretionary. In the case of Burundi, the government and the National Assembly have provided the investor with the highest level of certainty available, ensuring a fiscally attractive and legally secure basis to proceed with the project."

Argosy has received Vancouver Stock Exchange approval for its acquisition of Andover announced in News Release 99-01 dated February 11, 1999. Of the shares issued pursuant to this transaction, 14,253,120 are subject to escrow agreements. The escrowed shares are to be released in equal tranches over 6 years, with provision for early release if certain financing milestones are reached in the development of the Musongati project. The shares issued pursuant to this transaction that are not the subject of escrow will be released after a 4-month hold period.

ON BEHALF OF THE BOARD

Yale R. Simpson, President

CAUTIONARY STATEMENT

The Vancouver Stock Exchange has neither approved nor disapproved the contents of this News Release. This News Release includes certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. 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 our company, 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 our expectations are disclosed under the heading "Risk Factors" and elsewhere in our documents filed from time to time with The Vancouver Stock Exchange, the U.S. Securities and Exchange Commission and other regulatory authorities. All subsequent written and oral forward-looking statements attributable to our company or persons acting on its behalf are expressly qualified in their entirety by this notice.