Argosy and Calliope Announce Merger.

VANCOUVER, British Columbia--(BUSINESS WIRE)--March 9, 1999--Argosy Mining (VSE:AGO.) Calliope (VSE:CYO.) Argosy Mining Corp. and Calliope Metals Corporation announce a plan to merge the two companies, to bring together a substantial inventory of high quality nickel laterite resources while retaining a significant exposure to gold.

Subject to the satisfaction of certain conditions precedent, including completion of legal due diligence reviews satisfactory to each company and shareholder, regulatory and court approvals, Argosy and Calliope have entered into an agreement whereby they propose to combine their assets by a plan of arrangement under the Yukon Business Corporations Act (the "Arrangement"). Under the Arrangement, Calliope would acquire all the outstanding common shares of Argosy in exchange for common shares of Calliope on the basis of 3 Calliope common shares for 5 Argosy common shares. As a result of the Arrangement, Argosy would become a wholly-owned subsidiary of Calliope. Except in relation to the acquisition of the outstanding shares of Andover Resources N.L. announced by Argosy February 11, 1999, there are no outstanding options, warrants or other rights to acquire Argosy common shares.

This arrangement, and the enhanced asset base will facilitate the on-going working capital requirements of the two companies. As a result of the Arrangement, a unified management group will be formed, with extensive experience in corporate finance, project management and mineral exploration. The Arrangement will also result in shareholders of Argosy and Calliope becoming shareholders of a company with a larger shareholder spread which should provide enhanced liquidity. The Arrangement will also create operational efficiencies by eliminating the duplication of accounting, legal, corporate and administrative procedures.

On completion of the Arrangement, the combined entity will have three major advanced-stage projects, the Nakety and Musongati nickel-laterite projects and the Kremnica gold project. These projects are at different stages of development and each requires a different level of technical evaluation and financing to achieve fruition. The Nakety nickel-laterite project in New Caledonia, has the benefit of an excellent orebody, advanced engineering and favorable indicative economics even at prevailing metal prices, providing an excellent near-term development opportunity.

The Musongati nickel-laterite project in Africa is unique, being a large high-grade nickel-cobalt deposit with low resource risk. The timing to achieve production is medium term as the project requires staged expenditures to complete a feasibility study prior to a development decision in 2001.

The Nakety and Musongati nickel-laterite projects will both benefit from the pressure acid leach technology currently being utilized by four nickel-laterite mines, three of which are new integrated plants in Australia. This technology should reduce projected production costs substantially in the industry.

The Kremnica gold project in the Slovak Republic represents one of the largest undeveloped gold resources in central Europe. The resource requires higher gold prices or a financially strong joint venture partner, to be financed to production at present. However, it does provide excellent leverage to higher gold prices.

Argosy and Calliope have remarkable synergies given their portfolio of projects and executive skills. The combined entity will have exclusive rights to a nickel laterite inventory that is higher grade and larger than that held by any other junior exploration company in the world. Calliope's nickel expertise and the engineering database from Nakety can be applied to Musongati resulting in both cost and time savings in its development. Importantly, the combined cash position of C$8.3 million is sufficient to meet the immediate objectives of both companies and provide on-going working capital.

An independent valuator, Pincock, Allen & Holt of Vancouver, BC was retained by the independent directors of Argosy and by Calliope to prepare a valuation report and fairness opinion on the two companies. This report includes an opinion of the fair market value of the Argosy and Calliope common shares as at February 23, 1999 and an opinion as to the appropriate range of share exchange ratios based on the valuation conclusions. Argosy and Calliope intend to submit the Arrangement to shareholders for consideration at shareholder meetings presently scheduled for April 21, 1999.

ON BEHALF OF THE BOARD OF ARGOSY MINING CORP.

Yale R. Simpson, President and Chief Executive Officer

ON BEHALF OF THE BOARD OF CALLIOPE METALS CORPORATION

Peter H. Lloyd, President and Chief Executive Officer

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.