Argosy Mining Kremnica Gold Project - Sturec Structure Extended.

VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--Feb. 4, 1997-- Argosy Mining Corp. (VSE: AGO.) In December 1996, Argosy completed a Phase II, 10 hole diamond drilling program at its Kremnica Project in the Slovak Republic. The purpose of the program was to extend the Sturec vein system south of the area drilled by Argosy between June and September 1996. The program expanded a previously defined resource of 428,000 ounces gold equivalent - the Sturec deposit.

Seven drill holes on 100 metre spacing demonstrated that the mineralized vein system extends for at least 500 metres south of the Sturec gold deposit and continues open to the south and at depth. The width of the mineralized zone ranges from 17 to 92 metres, averaging 57 metres. The gold content is summarized in the table that follows.

The southern sector of the Sturec structure defined by the Phase II program has a similar width to the main deposit, with shallow zones of low-grade gold in all the holes. Based on drilling of the Sturec deposit, a minimum of 8 additional holes is planned to identify higher grade ore sections and determine ore grades.

Two diamond drill holes were completed on the Katarina Prospect 400 metres west of Sturec before bad weather curtailed activity. Both holes were drilled at the southern end of the 600 metre by 200 metre target area, as defined by extensive underground workings and surface mapping. The drill holes intersected multiple vein sets up to 30 metres wide. Extensive underground workings resulted in loss of core through areas of previous mining. Drill hole KAT-1 intersected, from surface, 30 metres at 0.61 g/t Au and KAT-2 intersected 18 metres at 0.97 g/t Au at a depth of 127 metres. A reverse circulation drilling program is planned to test for potential near surface zones of gold mineralization, where old surface mine workings indicate zones up to 60 metres wide.

At Kremnica, the previously untested northern sector of the property is interpreted to be an excellent exploration target for large scale reserves. Within this zone, the Wolf Prospect is a 250 metre long rhyolite-hosted quartz vein system which was extensively surface-mined in the medieval period across apparent widths of 200 metres. This area of mineralization will be a priority for drilling this year.

Argosy has set a 1997 budget of $4 million to advance the Kremnica project to the pre-feasibility stage and to assess its other exploration prospects. Resource calculations and metallurgical testwork for the Sturec deposit are underway at present. Drilling will resume in April with an 8000 metre program of both diamond and reverse circulation drilling planned, principally at Kremnica. The initial priority will be to test the Sturec deposit at depth where excellent gold grades and widths were reported from Argosy's Phase I program. The deepest intersection of that program (AS-7) intersected 60.7 metres averaging 4.84 g/t gold and 41.9 g/t silver, including 24 metres averaging 9.3 g/t gold. The drill hole was terminated in ore grade mineralization due to drilling difficulties.

In Eastern Slovakia Argosy controls two exploration licences covering 947 square kilometres. Field programs will commence in April to further define targets for drilling. -0-

PHASE II DRILLING - MINERALIZED INTERCEPTS
at 0.25 g/t Au Cutoff

Drill Hole              From-To        Length      g/t
                          (m)           (m)       Gold

AS-101                  38 - 55          17       1.19
                       129 - 131          2       1.25
AS-103                  56 - 114         58       0.50
            includes    56 - 64           8       1.11
            and         73 - 90          17       0.57
                       153 - 154          1       2.37
                       164 - 167          3       1.79
                       177 - 180          3       1.14
AS-106                   8 - 100         92       0.34
            includes    75 - 83           8       0.50
            and         85 - 100         15       0.44
AS-107                  35 - 119         84       0.56
            includes    43 - 53          10       0.70
            and         65 - 119         54       0.65
AS-110                   6 - 79          73       0.51
            includes    71 - 79           8       1.57
AS-112                   6 - 47          41       0.37
            includes    22 - 26           4       0.60
AS-115                  48 - 81          33       0.50
            includes    63 - 81          18       0.58
KAT-1                    0 - 30          30       0.61
                       173 - 176          3       0.56
                       286 - 287          1       2.13
                       298 - 300          2       2.08
KAT-2                  115 - 118          3       0.87
                       127 - 145         18       0.97

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CONTACT: Argosy Mining Corp.

Yale R. Simpson

604/ 689-5529

1-800-851-7423