Avocet acquires majority stakes in Peruvian tungsten mines, Beralt tungsten mine to reopen in January 1995.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Nov. 21, 1994--By agreements executed recently in Lima, Peru, Avocet Ventures Inc. ("Avocet") (VSE:AVZ) is set to raise its equity stakes in Peruvian tungsten producers S.A. Minera Regina ("Regina") and Fermin Malaga Santolalla ("Malaga") to 80% and 72% respectively.

In the case of Regina, Peru's leading tungsten producer, Avocet currently owns 22.4% of the company with an option to increase its interest to 41%. In a restructuring of the company's capital agreed with the Peruvian shareholders, U.S. $2.2 million of shareholders' advances will be capitalized with Avocet acquiring shares from the Peruvian shareholders to bring Avocet's interest to 80% at a cost of U.S. $2.5 million.

Avocet will provide Regina with the necessary capital and working capital to complete a U.S. $2 million program to further increase productivity. This program will be complete early in 1995 when the mine is scheduled to have a monthly production of some 150 tonnes of tungsten (wolfram) concentrates.

In the case of Malaga, Avocet currently holds a 40% interest and has acquired options to purchase an additional 32% interest from current local shareholders at a cost of U.S. $160,000 to bring its interest to 72%. An investment program likely to cost up to U.S. $1 million will be implemented, the main features of which will be opening up lower levels of the mine, moving an ore dressing plant to the current working area and satisfaction of outstanding creditors.

This plan will lead to the production in six months of some 80 tonnes of wolfram concentrates per month.

These investments will be funded from the proceeds of the recently completed $16.25 million private placement of shares and are subject to regulatory approvals.

Avocet also owns 80.55% of the Beralt tungsten mine in Portugal, where production is scheduled to restart in January 1995 at a rate of about 120 tonnes of wolfram concentrates per month. With all other major Western mines remaining closed, Avocet's subsidiaries will be the main source of mined tungsten outside China and the C.I.S.

Prospects for the tungsten market look much more healthy, having been depressed for many years. Decreased tungsten availability from China, the world's leading supplier, has created a marked tightening of supply. Prices have been steadily firming during 1994 and look set to move higher. As a result, Avocet is expecting a significant cash flow from its tungsten operations, which are all low cost producers by world standards, in 1995 and beyond.

Besides its interests in tungsten, Avocet has gold interests in Malaysia, where a 3 million tonne resource with an average grade of 3.4 grams of gold per tonne (330,000 ounces) has so far been defined by drilling, and in Peru where exploration is underway on 13,000 hectares of gold claims.

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Note to Editors: The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

CONTACT: Avocet Ventures Inc., Vancouver

              Jocelyn Waller, 071-834-1811 (London)
              James Robertson, 604/669-8988