Bishop Resources Acquires Gordon Lake Property from Kafus.

VANCOUVER, British columbia--(BUSINESS WIRE)--March 18, 1996--BISHOP RESOURCES INC.(Alberta Stock Exchange: BRI ) Bishop Resources Inc. (formerly Bishop Capital Corporation) ("Bishop") (Alberta Stock Exchange symbol-BRI) announces that it has completed the acquisition of the Gordon Lake property from Kafus Capital Corporation (formerly Giant Bay Resources Ltd.).

The acquisition was announced in the company's news releases of July 18, 1995 and August 11, 1995. This acquisition constitutes Bishop's Major Transaction and effective the opening of business on Tuesday, March 19, 1996, Bishop will no longer be considered a Junior Capital Pool Company. In connection with its major transaction, Bishop also changed its name to Bishop Resources Inc.

Bishop acquired a 100 percent interest in a mineral property located 80 kilometres northeast of Yellowknife, NWT, known as the Gordon Lake property. The cost of the acquisition was the issuance by Bishop of 1.5 million preferred shares from treasury at an agreed value of $1.00 per share. The value of the property was based primarily on an independent valuation.

The valuation, commissioned by Bishop, of the Gordon Lake Property was based on the reserves and grade established by prior reports on the zones encompassed by the current claims/leases. The No. 1 Zone on the MAHE claim, above the 200-foot level, has an estimate of 8,730 tons grading 0.80 ounces per ton. Potentially, this reserve could be expanded by future exploration and drilling. The No. 1 Zone is the core asset within the Gordon Lake Property. Other zones, including T-2 and T-11, would consist of 3,000 tons grading 0.5 ounces per ton.

In addition to the known deposits, there are other gold occurrences yet to be evaluated on the Gordon Lake Property, and additional reserves could be added to the known deposits with additional drilling. Such exploration could potentially add to the mineral inventory of this property.

Gordon Lake has had a long history of exploration since its discovery by prospectors in 1937.

Relevant work carried out from 1983 to 1987 by Giant Bay consisted of the following: During the years 1983 to 1986 a grid was cut over two-thirds of the property, a magnetic geophysical survey was completed over the whole grid and a VLF geophysical survey over half of it, the property was mapped and prospected in detail, old trenches were sampled and evaluated, 35,250 feet of surface and 2,680 feet of underground diamond drilling and 1,630 feet of percussion drilling were completed, 1,600 feet of 9' x 13' decline, 540 feet of 9' x 13' drift at the -200 foot level, and 540 feet in two raises of 5' x 7' were excavated.

The above-mentioned work led to the discovery of 12 gold-bearing zones, where varying amounts of work were done.

Gold mineralization on the property is associated with quartz and, in places, with black, carbonaceous, fine-grained siltstones in zones up to 110 feet wide. The gold is mostly coarse grained with common occurrences of visible gold. The gold-bearing zones are located in areas of structural complexity where drag folding is often present. The quartz structures contain gold values which can be in excess of one ounce of gold per ton and several feet thick in places.

While there are a large number of gold occurrences in turbidites within the Gordon Lake area, few have been sufficient size and tonnage to be mined successfully. However, based upon the independent valuation, some of the Gordon Lake deposits would appear to be economically viable.

Gold mineralization at Gordon Lake is spatially associated with quartz "bodies", which, due to the multiphase deformation history of the area, presently occur in several shapes and display various relationships to the preserved structural elements.

The quartz "bodies" occur as tabular veins, as equidimensional "blow-outs", and as stratabound and sometimes stratiform (up to 100 ft wide in the No. 1 Zone) siliceous zones.

All the above-mentioned quartz bodies are known to contain gold. The more economically significant ones, however, are the veins, and, particularly, the wide siliceous zones. To date, gold-bearing quartz "bodies" have been found in thirteen different zones, namely: No.1, No. 2, No. 3, No. 4, Bulge, VIV 8, VIV 15, T-11/2, T-15, T-32, Wooferine and Chane. Of these zones, the following have proven, probable, or possible ore reserves: No. 1 Zone, No. 2 Zone, T-11/2 Zone, and Wooferine Zone. The bulk of exploration work to date was carried out in the No. 1 Zone.

The general area has been the subject of intense land speculation for diamonds. However, a review of the available magnetic data for the Gordon Lake Property has not revealed any obvious kimberlite targets. Since the magnetic data does not totally cover the property area, some modest potential may exist from an exploration viewpoint.

Bishop has budgeted a minimum of $200,000 for new exploration work aimed specifically at determining the economic viability of mining gold deposits on the Gordon Lake Property.

Additionally, Bishop reports the resignation of K.F. Swaisland as Director and the appointment of Anthony Beruschi as Director effective March 5, 1996.

Note to Editors: The Alberta Stock Exchange has neither approved nor disapproved the information contained herein.

CONTACT: Bishop Resources Inc.

Todd Hilditch

Investor Relations 

604/602-1981