Ashanti to acquire 90 percent of Bibiani.

ACCRA, Ghana--(BUSINESS WIRE)--June 6, 1996--Ashanti Goldfields Company Limited ("Ashanti") has entered into an agreement to acquire Ghana Libyan Arab Mining Company Limited ("GLAMCO"), a Ghanaian incorporated company which holds the Bibiani gold mining concession in South Western Ghana ("the Bibiani Project").

Ashanti has previously announced the planned acquisition of the issued share capital of International Gold Resources Corp. ("IGR"). One of IGR's principal assets is its right to earn a 45 percent equity interest in the Bibiani Project. On completion of both these transactions, Ashanti will acquire a 90 percent interest in the Bibiani Project, the remaining 10 percent being owned by the Government of Ghana. The consideration for the acquisition of GLAMCO will be the issue of 1.557 million ordinary shares in Ashanti.

The acquisition by Ashanti of 90 percent of the Bibiani Project would represent a significant increase in Ashanti's reserves and future production profile. Previous evaluation conducted by IGR has estimated that the Bibiani deposit has about 2.6 million ounces of measured and indicated resource. The deposit should be able to support production levels in excess of 150,000 ounces per annum in the early years, depending on the final mine plan and plant decision.

Once the acquisitions are completed and prior to determining the final mine plan and plant design, Ashanti would intend to define further the main Bibiani ore body, extensions, parallel zones and the North Bibiani deposit with an additional drilling program and conduct additional metallurgical testwork.

The Bibiani Project can be advanced quickly and cost-effectively by Ashanti, which will be able to relocate a 9,000 tonnes per day section of its oxide plant from Obuasi as well as a section of its open-pit fleet upon the winding down of its current open pit oxide operations. Production costs should be around US$200 per ounce. Start up should be in late 1998.

The agreement to acquire the interests in the Bibiani Project is subject to a number of conditions, including accounting due diligence and regulatory approvals. It is currently expected that this transaction can be completed during June 1996.

The acquisition of IGR is subject to a vote of IGR shareholders on Monday, June 10, under the plan of agreement and if subsequently approved by the court closing is anticipated to take place on or about June 17, 1996.

GLAMCO's only activities relate to its interests in the Bibiani Project, which currently does not produce any income. Consequently, GLAMCO relies on support from its shareholders to meet its expenses. For the ten month period ended Oct. 31, 1995, the company reported a net loss of approximately US$438,000.

CONTACT: Ashanti Goldfields Company, Accra

Mark Keatley, CFO, 233/21-776501

James Anaman, Corporate Affairs Manager, 233/21-778178

or

International Gold Resources Corp.

Stephen Dattels, Chairman, 416/947-9208

Daniel Idzal, President, 713/654-3004

or

Shandwick Consultants, London

John Goold, 171/329-0096

or

Golin/Harris, New York 

Allan Jordan, 212/697-9191

or

Continental Communications, Toronto

Allan Reynolds, 416/964-6444