Cartaway Resources - Update on Agreement with KBK No. 134 Ventures Ltd.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Sept. 5, 1996--CARTAWAY RESOURCES (Alberta Stock Exchange:CWA) Cartaway Resources Corporation ("Cartaway") is pleased to announce the following regarding the agreement with KBK No. 134 Ventures Ltd. ("Ventures"):

i) the necessary regulatory approvals to the transaction which was described in Cartaway's press release dated August 7th, 1996 have been obtained;

ii) a 40 percent interest in Cartaway's properties in the Okak Bay area of Labrador has been transferred to Ventures;

iii) Ventures has advanced $2,000,000 to be spent on exploration in the joint venture area; and

iv) Ventures has advanced $500,000 to Cartaway pursuant to a convertible debenture.

Cartaway has three drills operating within the joint venture area, one on the Cirque property, one on the ridge anomaly located on the Cartaway - Canadian States Resources boundary (2 km north of the Cirque property) and a smaller prospect drill on the Southview property to the south.

A time domain surface and down the hole electromagnetic unit has been on site for two months and is doing big loop surveys on the Cirque and Putuaalu Brook claim blocks (LB-H, J, K). A large, deep magnetic and very conductive anomaly has been defined on block LB-H. It is 600 by 400 meters in dimension and it is 200 meters to the top. The current drill program will continue until late October or early November with results being released on a regular basis. -0- On behalf of the Board of Directors John Ivany President

CONTACT: Sterling Pacific Capital Inc.

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

604/687-1405 (Fax)

INTERNET: http://www.sterlingpac.com

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