Calliope Metals -- Update on Reverse Takeover Transaction.

VANCOUVER, B.C.--(BUSINESS WIRE)--June 10, 1996--Calliope Metals Corp. (formerly Durandel Minerals Corp.) is pleased to provide an update regarding the reverse takeover transaction as reported April 12, 1996 (News Release 96-2) to acquire a Project for the development of a nickel/cobalt processing facility in Queensland, Australia.

The size of the Project has been doubled to a two autoclave facility capable of processing 1,000,000 dry tonnes of laterite ore annually with an average grade of 1.6 percent nickel and 0.16 percent cobalt. Durandel has received an independent engineering report prepared by Davy John Brown Pty Ltd providing estimates of Project capital and operating costs to a plus/minus 35 percent order of accuracy.

The expanded Project's estimated fixed capital cost is Aus$226 (C$247) million and the estimated cash operating cost is Aus$115 (C$125.7) million per annum (before contingencies). Ross Glanville and Associates Limited has provided Calliope with a revised Valuation Report based upon the Davy John Brown cost estimates and including reasonable contingency allowances.

The new Glanville Valuation demonstrates a discounted net present value for the Project of Aus$101 (C$110.4) million at a 10 percent discount rate, assuming nickel and cobalt prices of US$3.50 per lb and US$13.00 respectively.

To provide additional ore for the enlarged Project, Calliope Metals Pty Ltd has entered into an additional ore supply agreement with Mai Kouaoua Mines Sarl ("MKM") of New Caledonia. This agreement contemplates an annual supply of up to 500,000 wet tonnes of limonite ore upon terms similar to Calliope's ore supply agreement with SMT.

The new agreement is conditional upon MKM proving up limonite reserves to a standard satisfactory to Calliope.

The share exchange agreement between Durandel and Gordian contemplates a share consolidation on a one for two basis, a name change to Calliope Metals Corp. (which occurred April 22, 1996) and the issuance of 12 million post consolidation shares to Gordian at a deemed price of $0.30 per share (post consolidation).

Ausmetals Pty Ltd now has a right to acquire 75 percent (previously 84 percent) of the Durandel shares to be issued to Gordian and holds a 2 percent royalty on the cash operating surplus of the Project (revised from a 2 percent gross revenue royalty).

The Vancouver Stock Exchange has completed its initial review of the Exchange Offering Prospectus pursuant to the proposed reverse take over and C$4,200,000 financing. The EOP has been revised to reflect the expanded Project size and resubmitted to the V.S.E.

A prospectus has been lodged with the Australian Securities Commission to qualify the financing for sale to Australian investors. The shares of the Company will resume trading following regulatory approvals and completion of the financing. -0- ON BEHALF OF THE BOARD James W. Prier, Secretary -0- The Vancouver Stock Exchange has neither approved nor disapproved the contents of this news release.

CONTACT: Calliope Metals Corp.

James W. Prier, Secretary, 604/689-9188