Cambiex Announces its 1997 Financial Results and its 1998 Annual Meeting.

MONTREAL--(BUSINESS WIRE)--May 7, 1998--CAMBIEX (ME:CBX.) (TSE:CBX.) 1997 FINANCIAL RESULTS

Cambiex incurred, for the period ended December 31, 1997, a loss of $1,691,300 or $0.06 per share, (compared to a loss of $537,100 or $0.02 per share in 1996) including non-cash items of $1.2 million due to the devaluation of a project and $269,400 ($53,400 in 1996) related to the abandonment of exploration projects. In 1997, interest income amounted to $145,400 and corporate administrative expenses were $455,200 compared to $102,900 and $586,600 respectively in 1996.

For the fourth quarter of 1997, the Company posted a loss of $1,206,300 ($0.04 per share) compared to a loss of $84,900 for the same period in 1996. For the quarter, interest income totalled $30,400, while corporate administrative expenses were $124,500 compared to $53,700 and $138,600 respectively for the fourth quarter of 1996.

In 1997, investments in exploration projects amounted to $1,706,400. The Company's assets at December 31, 1997 amounted to $15,845,800 including $10,891,800 for exploration projects. At December 31, 1997, cash and short-term investments amounted to $2,672,400.

YAOU-DORLIN (FRENCH GUIANA)

Work continued during 1997 at Cambiex's 15 percent owned Yaou- Dorlin Project, in French Guiana. Partners Cambior Inc. and Guyanor Ressources S.A. funded some US$ 5.6 million in exploration expenditures on the Project in 1997 bringing the total amount expended since 1994 to US$ 13 million. Cambiex had funded expenditures totaling US$ 1.6 million to earn its interest in 1995.

Exploration activities in 1997 centered on the Dorlin concession where 103 holes totaling 15,800 metres were drilled. The drilling focused on the southern 1.5 kilometres of the Nivre deposit, a significant north-south trending system of mineralized breccias that has been mapped and sampled over a continuous distance of five kilometres and discontinuously over nine kilometres.

Total mineral resources at Yaou and Dorlin currently stand at 17 million tonnes grading 1.9 g Au/t representing approximately one million ounces of contained gold calculated using an assumed gold price of US$ 350 per ounce.

Cambior is currently preparing a pre-feasibility study for the Project which should be completed during the second half of 1998. The primary aim of the study is to develop a preliminary estimate of likely capital and operating costs for a mine at the Project site with a view to reformulating its exploration objectives. Given the relative remoteness of the Project site and the attendant impact on projected capital and operating costs, the Project remains sensitive to the number of recoverable ounces of gold in reserves, the grade and the price of gold. The partners will also conduct metallurgical testing during 1998 to determine the amenability of Yaou and Dorlin ores to heap leaching, a gold recovery method that would, if available, reduce capital and operating cost projections substantially.

Cambior and Guyanor have budgeted expenditures of US $1.5 million on the Project in 1998 primarily to complete the pre-feasibility study. Cambiex will retain its 15 percent residual interest in the Project without contributing to the 1998 program.

SULTANA (IDAHO, U.S.A.)

Substantial work also continued during 1997 at the Sultana copper- gold project, in Idaho. Cambiex completed the acquisition of a 30 percent interest in this Project by funding exploration expenditures totaling US $2 million during 1996 and 1997.

Exploration work during 1997 focused on expanding the mineral inventory defined by previous years' exploration programs. Although the 1997 drilling succeeded in identifying additional resources, the economic value of the overall resource did not increase significantly due to the utilization of more restrictive modeling parameters and higher cut-off grades than in previous calculations, primarily to reflect lower metal prices.

Total oxide and sulfide geologic resources at Sultana stand at approximately 27 million tonnes taking into account drilling completed during 1997. Preliminary scoping studies conducted by Cambior personnel as part of the 1997 program indicate that some 13 to 15 million tonnes of oxide mineralization on the property could support a small operation yielding a marginally positive rate of return using revenue assumptions of US $360 per ounce for gold and US $1.00 per pound for copper.

As the potential to increase resources on the property remains strong, particularly in the sulfide ores, the results of the scoping study would amply justify the conduct of additional exploration work at Sultana in a more normal metal price environment. Recent indications received from third parties showing an interest in acquiring or joint venturing the Property also attest to its potential. Cambiex and Cambior will continue to assess prospects to further the development of this Project as market conditions evolve. Cambiex's share of carrying costs for the Project during 1998 are estimated at US $50,000.

PERU 

In Peru, a modest exploration program is planned on the Jarwatuna and Carpiza gold-copper properties acquired during 1997, while partners Cambior and Southwestern Gold Corp. are actively seeking out a new partner to fund the next phase of exploration on the most prospective portions of the 8.5 percent Cambiex-owned Abancay polymetallic regional project.

QUEBEC

In Quebec, Cambior and Cambiex have successfully negotiated funding commitments from new partners for most of their jointly held property positions, including the Lesperance, Flavrian and Montbray properties. Cambiex typically retains a residual participating interest or a net smelter return royalty interest in these properties while benefiting from exposure to the renewed exploration efforts of third parties. In the light of the agreement on the Montbray project, the Company has devaluated the project by $1.2 million.

OUTLOOK

Cambiex has been invited to assess the potential of some 15 new and, in many cases, highly prospective exploration properties in Quebec, the United States, Peru and Chile held by Cambior and currently on offer, at cost, to Cambiex, as to interests ranging from 30 percent to 50 percent, pursuant to previous commitments by Cambior to Cambiex in this regard. The Board of Directors has retained an independent consultant to assist in the assessment, and its recently completed report will be studied closely by the board for appropriate action.

Although these opportunities through Cambior afford excellent growth possibilities, the Company's directors remain mindful of the need to explore other avenues, including opportunities potentially available through third parties other than Cambior, for enhancing shareholder value. The hallmark of a successful exploration company lies in gaining exposure to the most meaningful critical mass of exploration properties available, from whatever source, which in turn maximizes opportunities for exploration success and continued access to capital.

ANNUAL MEETING 1998

The Company also announces that its Annual General Meeting of Shareholders will be held on Wednesday, June 17, 1998 at 3:00 pm in the auditorium of the Montreal Exchange.

Cambiex is an exploration company with interest in several properties in French Guiana, Latin America, the United States (Nevada and Idaho) and Canada. Cambiex common shares (CBX) trade on the Montreal and Toronto stock exchanges.

CONTACT: Cambiex Exploration Inc.

Pierre Chenard, 514/878-3166

or

Cambiex Exploration Inc.

Victoria Putnam, 514/878-3166