Cartaway Resources - Labrador Exploration Activities.

VANCOUVER, British Columbia--(BUSINESS WIRE)--June 20, 1996--CARTAWAY RESOURCES (Alberta Stock Exchange: CWA) Cartaway Resources Corporation (the "Company") is pleased to announce the commencement of its summer field program which will focus on its most prospective properties in Labrador. The initial program will involve geophysical surveying as well as geological mapping and prospecting. Follow-up drilling will utilize two machines, one of which will be extremely portable, and will be used for initial drill testing of anomalies.

The Company has sufficient funds to carry out geological and geophysical evaluations of all its properties. Management intends to raise sufficient funds to complete all drill programs that are warranted this year.

CIRQUE PROPERTY

DDH 7, drilled Grid W from the bottom of the Cirque at 7+05E on Section 3+75S at an inclination of minus 50 degrees, 275 metres south of DDHs 4, 5 and 6 on Section 1+00S, was completed at 588 metres after encountering massive anorthosite with a minor intersection of leuconorite. No appreciable quantities of sulphide mineralization were intersected. The hole is believed to have been drilled in a faulted block, separated from the main sulphide-mineralized zone. The completion of this hole marks the end of the first phase of drill testing of the Cirque anomaly.

The Company has engaged nickel specialist F. Puskas to make a study of the drill core and results from the Cirque property. An ongoing program, including further drilling, has been recommended. Mr. Puskas' preliminary conclusion is that the exploration to date has been restricted to sulphides representing replacement bodies which have variably detextured the sulphidized anorthositic/gabbro/noritic host rocks. The detailed textures can be described both qualitatively and quantitatively as either distal-peripheral or more medial. Mr. Puskas, whose study continues, recommends that these daughter sulphides, contained within a zone more than 350 m in width and dipping 50 degrees east on drill section, be traced to depth by diamond drilling in an attempt to intersect the parent/precursor body of sulphides. Although tentative, these sulphides may exhibit characteristics diagnostic of more attractive, nickel-enriched restites.

Cartaway is planning to complete a surface and downhole Time Domain EM survey on the Cirque floor to aid in drill hole location. Drilling is planned to resume by mid summer.

OKAK BAY LB-J

Results from the 8 and 6-m thick conductive troctolite horizon intersected respectively in DDH's LB-J-1 and -2, the initial holes to test a 600-m wide by 800-long (open) moderate to strong Time Domain EM anomaly, although sub-economic, affirm the magmatic origin of the sulphide mineralization. Results indicate metal zoning, with values to 0.084 percent nickel, 0.125 percent copper and 0.029 percent cobalt concentrated in the lower part of the troctolite unit. The presence of highly differentiated troctolites bearing magmatically-derived sulphides holds great promise for the discovery of concentrations of nickel and copper sulphides in feeder dykes. HLEM MaxMinII and magnetometer surveying, commenced in the recent winter program, will be completed over airborne-EM indicated favorable parts of wholly-owned contiguous claim blocks LB-J, LB-H and LB-K (Licenses 1767M, 1769M and 1770M) to outline targets for Time Domain EM and diamond drill follow-up. Drilling will take place this summer.

FP-B

Cartaway prospectors have recently discovered Gold-Silver-Copper- Bismuth mineralization on this property (License 2528M) 15 km south of Okak Bay. The mineralization occurs in quartz veins in a 7-m plus wide sulphide-bearing alteration zone on a cliff face on the northwest shore of Umiakoviarusek Lake,. One sample of mineralized quartz vein from talus below the cliff face assayed 3493 ppb (0.1 oz/t) gold, 117 ppm (3.4 oz/t) silver, 1.6 percent copper, 0.5 percent bismuth and anomalous amounts of arsenic, antimony and cobalt. The mineralized zone occurs in Archean gneiss in a window through Nain Plutonic Suite rocks. The mineralized material is accompanied in talus by Magnetite-Silicate Iron Formation.. Follow-up of the discovery will consist of geological mapping and prospecting, geophysical surveying and diamond drilling. The property belongs to Freeport Resources Inc. and is being explored by Cartaway under an option agreement whereby Cartaway can earn a 70 percent interest.

KYFANAN LAKES

Results have been received from assaying and from a polished thin section study on core from a program of diamond drilling completed in late April on a block of claims under option from the Hawk syndicate on which Peruvian Gold Ltd. and Cartaway are earning a 50 percent interest. The drilling has intersected a previously unreported succession of layered mafic intrusive rocks including granophyric gabbro, anorthositic gabbro, hornblende pyroxenite and olivine pyroxenite, containing up to 30 percent combined ilmenite and magnetite. Metallic mineralization appears to be predominantly oxide phase, with only minor sulphide as pyrite, precluding the chance for copper-nickel sulphide mineralization. Values for copper-nickel-cobalt and gold-platinum-palladium were background only.

Cartaway and joint venture partner Peruvian Gold Limited will conduct a short program of geological mapping and prospecting to follow-up magnetic and/or electromagnetic responses from the airborne EM survey, which totaled 5,000 line km.

PERU 'A'

Cartaway's geophysical consultant has interpreted an airborne EM survey flown over this claim block (Licenses 1977-1984M, 3163-3172M, 3174-3178M), located on the northwest shoulder of the Harp Lake Complex, and recommended five conductive zones for ground follow-up. Cartaway is earning a 50 percent interest from Peruvian Gold Limited covering six claim blocks along the border of the Harp Lake Complex.

SOUTHVIEW

Cartaway has entered into an option agreement with Southview Capital Corporation on License 1753M, a 78 claim unit block 90 km northwest of Nain in the Nain Plutonic Suite and can earn a 60 percent interest in the property. Cartaway has established grids over two combined magnetic-electromagnetic airborne responses and conducted ground geophysical surveys, establishing ground combined magnetic-electromagnetic targets. Follow-up will consist of detailed ground geophysical surveying, geological mapping and prospecting and diamond drilling. Reconnaissance prospecting while the ground was still partially snow-covered encountered low outcrops of dark green to black olivine-bearing Nain Plutonic Suite intrusive rocks in the vicinity of the conductors. The area contains abundant angular rubble of Churchill Province graphite-bearing Tasiyuak gneiss, suggesting proximity to the base of the Nain Plutonic Suite. Management anticipates drill testing the property this summer.

THISTLE

Significant airborne EM anomalies on the BR-E claim block (License 3307M) north of the Harp Lake Complex have been followed up with winter reconnaissance ground magnetic and electromagnetic surveys, which confirmed the presence of strong ground conductors. Follow-up will consist of detailed geophysical surveys, geological mapping and prospecting, and diamond drilling.

CAMNOR

A block of 16 claim units was staked to cover the strike extension of strong geophysical responses blocks CMB-C and CMB-D (Licenses 2105M and 2106M) on the northern border of the Harp Lake Complex. Follow-up ground geophysical surveying and prospecting are planned. Cartaway is earning a 51 percent interest from Camnor.

CABOT LAKE

Additional geological ground truthing of strong combined magnetic and electromagnetic conductors on a claim block held under option from Freeport Resources Inc. at Ikadlivik Brook northwest of Cabot Lake and from International Silver Ridge on the south shore of Cabot Lake will be carried out before diamond drilling these properties.

POINT CLAIMS

Cartaway has entered an agreement whereby a private Vancouver-based company is earning an interest in five mineral claim blocks in southern Labrador. The five claim blocks, the 'Point Claims', lie northeast of Wilson Lake, between Goose Bay and Churchill Falls, and are underlain by mafic intrusive gabbros and norites. An airborne magnetic-electromagnetic survey is underway and a ground follow-up geological and prospecting crew has been mobilized into the field. The claim blocks are located in an area of sulphide showings within the mafic intrusive rocks.

On behalf of the Board of Directors Walter Nash Vice-President Exploration

CONTACT: Sterling Pacific Capital Inc.

1-800-663-0510, 604/669-2701

INTERNET: http://www.sterlingpac.com

E-MAIL: spc(at)helix.net NOTE: Location map available from the Company at the phone number listed above.