Bishop Options B.C. Volcanogenic Massive Sulphide Property From Falconbridge.

VANCOUVER--(BUSINESS WIRE)--Jan. 28, 1997--Bishop Resources Inc(Alberta Stock Exchange BRI.) Bishop Resources Inc. ("Bishop"), a junior mining company on the Alberta Stock Exchange ("BRI"), is pleased to announce that an agreement has been reached to option certain mineral claims located in B.C. and commonly known as the "Scotia property" from Falconbridge Limited whose common shares are listed on the Toronto Stock Exchange ("FL").

Arnex Resources Ltd. and Arnie Birkeland, being the parties that introduced the property to Bishop, shall receive a finder's fee consisting of cash, share payments and a royalty.

The Scotia property is comprised of six mineral claims (30 mineral claim units) named Albere no. 1,2,3, and 4, and Scotia 1 and 2, which are located in the Skeena Mining Division, located in NTS 1031, about 42 km. southeast of Prince Rupert, B.C. The property has favourable logistics with close proximity to power, tidewater, and both road and rail infrastructure.

Under the terms of the option agreement, Bishop has the right to conduct exploration activities and to acquire a one hundred (100 percent) percent interest by paying to Falconbridge and Arnex option payments totalling $400,000 over five (5) years, and incurring expenditures totalling $3,000,000 over six (6) years. Falconbridge retains a 2 percent Net Smelter Royalty ("NSR") and Arnex earns a 1 percent NSR. The option payments and work commitments are cumulative and may be accelerated at Bishop's option. Bishop will issue warrants to Falconbridge to purchase $250,000 worth of common shares of Bishop for a period of 12 months and $300,000 worth of common shares of Bishop for a period of 18 months at no more than 150 percent and 200 percent respectively, based on Bishop's recent average closing market price. The issuance of the warrants will be subject to receipt of all necessary regulatory approvals.

After Bishop has spent $5,000,000, Falconbridge shall have the right to back-in for a 51 percent interest in the property, by funding the next $15,000,000 of expenditures over a period of three (3) years. If Falconbridge elects to back-in, a joint venture would be formed between Falconbridge and Bishop, whereby Falconbridge would retain a deemed initial 51 percent interest and Bishop 49 percent. To slow the dilution, a 2 times formula would be applied to any non-participating party, and if any party's interest is diluted below a 10 percent working interest, such interest shall be converted to a 2 percent NSR. Falconbridge and Bishop each have the option of purchasing their proportionate share of the 1 percent NSR from Arnex for a combined total of $1,000,000 within 6 months of commencement of commercial production.

The exposed massive sulphide mineral zone on the Scotia property was discovered by Texas Gulf Sulphur Co. in 1958. Between 1960 and 1987, various exploratory programs were undertaken by Texas Gulf and successor companies (Kidd Creek Mines, Falconbridge and Andaurex) and have included surface surveys and four drilling campaigns consisting of 3406 metres (11,170 ft.) in 32 holes.

The exposed polymetallic massive sulphide occurrence consists principally of sphalerite with lesser galena, chalcopyrite and pyrite. The geological setting is typical of volcanogenic massive sulphide environments, the zone is hosted by felsic metavolcanic rocks close to a mafic metavolcanic contact.

Drilling to date has identified a geological resource of 206,000 tons with an average grade of 11.8 percent zinc, 1.3 percent lead and 0.6 oz/ton silver, including credits from copper and gold. Reported drill intercepts range between 2 and 18 metres and average 4.6 metres.

The partially drilled zone containing the current indicated resource is open along a shallow plunge to the north. In addition, there are a number of untested geophysical and geochemical targets associated with baritic exhalite horizons elsewhere on the property. Deposits of this type are known to occur in clusters - examples include the numerous deposits of variable size which have been mined at the Myra Falls operation on Vancouver Island, operated by Westmin Resources Limited over the past 30 years, or the Kudz Ze Kayah and the Wolverine deposits currently under development in the Finlayson Lake District of southeast Yukon, by Cominco Ltd. and Westmin-Atna Resources Ltd. respectively.

Bishop Resources Inc.'s objective is to become a significant resource based development company focused on the identification, acquisition, and development of precious and polymetallic mineral deposits. -0- The Alberta Stock Exchange has neither approved or disapproved the information herein.

CONTACT: Bishop Resources Inc.

Mr. Andrew Schwab, 250/ 764-7677

250/ 764-7606 (FAX)

[e-mail] (Email)