Bolivar Reports Progress with Financing for Tomi Gold Project.

TORONTO--(BUSINESS WIRE)--June 17, 1997--(TSE BVG. ) Standard Bank of London has agreed with Bolivar Goldfields to underwrite a US$28 million Loan Facility for the construction of the Tomi project in Venezuela.

Total project costs are estimated to be US$40 million, comprised of US$30 million for construction and the balance for working capital, finance closing costs, a pre-production royalty and other pre-construction costs. Standard has agreed to provide a US$28 million Project Loan Facility plus a US$5 million Subordinated Standby Loan Facility, subject to finalization of due diligence and documentation.

The Bank technical audit of the Tomi project feasibility study engineering and reserves has been completed by Denver based Steffen Robertson and Kirsten ("SRK"), confirming the technical feasibility and economic viability of the project. SRK will also review the final engineering study and construction contract when completed.

The preliminary report on the first phase engineering for the project has been completed by JE MinCorp, a division of Jacobs Engineering Group Inc., and is presently being reviewed by Bolivar and Micon International Inc. ("Micon"). Micon is a Canadian-based mineral industry consulting firm assisting Bolivar in project development and management of the construction of Tomi, including the start-up of operations. Construction will be by a fixed price turnkey contract with an experienced capable contractor. Negotiations are expected to commence when the evaluation of the first phase engineering is complete.

An environmental impact study has been completed and submitted to the Venezuelan government for approval. Bolivar expects the environmental permits to be issued by August of this year.

Endeavour Financial Corporation ("Endeavour"), a Canadian-based company with considerable expertise in arranging financing for mining projects, has been engaged to assist Bolivar in obtaining the balance of the project funding. Endeavour has also been assisting Bolivar with the debt financing.

Once the environmental and other permits and licenses have been received and the financing completed, construction will commence and will take approximately 14 months to complete.

The Tomi project is comprised of three deposits having measured, indicated and inferred resources of more than 5 million tonnes averaging 3.46g/t Au and containing 338,000 recoverable oz. Au. The presently delineated mineable reserves are capable of supporting a low-cost open pit mining operation producing an average of 48,000 oz. Au per year for a minimum of seven years with an average cash operating cost of US$191 per oz. Gold production during the first two years of operation will be in excess of 81,000 oz. and 61,500 oz., with a cash operating cost of US$114 per oz. and US$156 per oz., respectively, giving the project a short pay back period.

An increase in the existing open pit reserves may result from the addition of several mineralized zones which have been identified outside the area of the proposed mine development. At present, many of these zones are thought to be too small to support a separate operation; however, due to their proximity to the proposed Tomi plant, they may provide additional feed for the Tomi mill. Testing carried out on one of these zones, the Fosforito, has shown a resource of 42,000 oz. Au with a grade averaging 2.68g/t Au.

Further upside potential of Tomi exists in at least two of the deposits planned for open pit mining, as they are both open at depth. In one of the deposits 4 drill holes reached a level 100m below the planned pit bottom, and intersected several high-grade mineralized zones including 10.45g/t Au over 4.5m, 36.24g/t Au over 3.0m and 7.78g/t Au over 47.6m.

These intersections indicate that the Tomi deposits, as they have been delineated, may only be the surface expression of a much larger structure that has considerable geological potential for containing high-grade mineralization at depth. This type of mineralization could provide the basis for an underground mine, operating independently or in conjunction with the open pit operation.

In addition, there is a strong indication that the mineralization at Tomi extends beyond the Tomi concession onto the adjacent Dividival/Belen concessions, which are also part of Bolivar's land package. Exploration is being carried out in Belen where two geochemical anomalies have been tested by trenching from which encouraging results have been obtained and drilling targets delineated.

CONTACT: Bolivar Goldfields Ltd.

Mauro Coppola/Don Ford, 416/955-4554

416/955-1206 (FAX)