Cartaway Resources Corporation - results from hole #3 Cirque Property, Labrador.

VANCOUVER,--(BUSINESS WIRE)--May 21, 1996--CARTAWAY RESOURCES (Alberta Stock Exchange:CWA) Cartaway Resources Corporation ("Cartaway") has received the assay results from DDH hole #3 on its 100 percent owned Cirque property in northern Labrador.

The Sulphide mineralization in the hole occurs in two zones, an Upper and Lower. The assays for the two zones are tabled: -0-

       INTERVAL
       (METRES)
HOLE   FROM    TO   LENGTH    CU PERCENT  NI PERCENT CO PERCENT
----   ----    --   ------    ----------  ---------- ----------

Upper  10.8   31.45  20.65    .121        .069       .043
       37.40  41.00  3.60     .132        .128       .075
       53.70  57.50  3.80     .185        .094       .053
       106.30 125.30 19.00    .121        .073       .041

Lower  127.30 134.30 7.00     .230        .168       .082
       147.80 155.60 7.80     .204        .189       .073
       167.80 170.60 2.80     .068        .098       .058
       176.80 194.80 18.00    .227        .145       .080

Assays from the Upper Zone correspond to assays reported on May 17, 1996 from DDH holes #1 and #2. These intervals were all in the lower portion of a large pipe-like structure identified by geophysical testing.

Assays from the Lower Zone come from an interval of massive sulphides encountered below the above described pipe-like feature. The dimension of the lower zone, other than as seen in Hole #3 is, at present, unknown. The Company had previously reported that the Lower Zone contained significant amounts of chalcopyrite which led us to believe that the grades in this zone would be better than those reported above. The visual estimates were made by a well experienced geologist in the field who has worked on copper and nickel deposits in the past. His estimate of the sulphide content in the first 3 holes appears to be correct. Apparently the chalcopyrite content was overestimated. The Company is currently reviewing the procedures which gave rise to this disappointment.

The assays reported herein and in our release on Friday will be very disappointing to our shareholders. Although that disappointment will be hard to overcome, we feel that shareholders must consider the following:

1) The geophysical anomaly on the Cirque property is exceptionally strong and indicates the presence of a large body of sulphides. Just as 3 good holes would not have been proof of the existence of an economic orebody, the three holes reported do not mean that the property should be written off. Although the grades are low, we have evidence of copper, nickel and cobalt in the system.

2) Cartaway owns 30,000 claims in Labrador and, to date, has identified almost 50 targets which should be tested by diamond drilling. We always claimed that the company was set up to give investors a spread of opportunities and we still believe that to be valid.

In an overheated market, great pressure is put on companies such as Cartaway to report almost hourly on progress. The events of the past week have demonstrated how visual estimates of core can lead to unreasonably high expectations, as reflected in both stock trading volumes and prices. An old lesson in the exploration business is that the assays tell the tale. With that in mind, the Company will only report on the quality of future holes once the assay results are in hand. Holes number 4, 5 and 6 on the Cirque property will be completed over the next couple of weeks and will be reported when assays are in hand. -0- On behalf of the Board of Directors "John Ivany" President

CONTACT: Sterling Pacific Capital Inc.

[phone], 800/663-0510

internet: http://www.sterlingpac.com

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