Argosy Mining Kremnica Gold Project Third New Zone Discovered.

VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--Aug. 11, 1997-- Argosy Mining Corp. (VSE AGO.) Argosy is pleased to announce an important new discovery at its Sturec gold deposit at Kremnica in the Slovak Republic. As shown on the attached map, the new "South Ridge Zone', is located west of the 965,000 ounce Sturec gold resource announced on April 30, 1997. The new discovery remains open to both the south and west. Argosy will commence drilling to define and extend the discovery shortly.

The South Ridge Zone has been tested by 13 diamond drill holes. Results are available for 11 holes as shown on the attached Table 1. The deeper intercepts in the holes AS-125, AS-127, AS-129 and AS-141 are east of the new discovery within the western portion of the Sturec deposit.

The South Ridge Zone is at least 500 meters long. While forest cover had obscured its presence, the new zone appears to outcrop on the top of a ridge and dip to the east. It consists primarily of quartz stockwork mineralization located in the footwall of the main Sturec deposit.

The discovery of the South Ridge Zone is highly significant as it will increase the total ounces in the Sturec deposit and decrease the waste-to-ore ratio for all of the mineralization located in the southern part of the Sturec deposit.

Assays from drill hole AS-3.2, the last of the deep holes drilled on the main Sturec deposit this year, are reported in attached Table 2.

Argosy is planning to complete a new resource calculation leading to a preliminary feasibility study this winter. The company expects that overall resources will be increased substantially by this year's drilling.

--ON BEHALF OF THE BOARD YALE R. SIMPSON, President

NOTE: Location map and drilling resuls, South Ridge Zone, available from the Company at the phone number listed below.

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 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 Vancouver 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.

CONTACT: Argosy Mining Corp.

Yale R. Simpson, 604/ 689-5529

604/ 689-5079 (FAX)

1-800-851-7423