Channel Sample Results and Drill Program.

COEUR D'ALENE, Idaho--(BUSINESS WIRE)--Nov. 13, 1998--Metalline (OTC BB:MMGG) is conducting underground mapping and sampling at their Sierra Mojada Project, Coahuila, Mexico.

The mapping and sampling is being conducted in the Once, Vulcano, San Jose and Veta Rica mines in the west end of the district and in the Encantada, San Salvador and Fronteriza mines in the east end of the district, 3 kilometers to the east.

To date, 1619 samples have been collected and analyzed with the following results: -0-

                  Number    Silver    Silver    Copper    Zinc    Lead
                            g/tonne   oz/tonne    %        %       %

Total             1619      124       4.0       0.48      2.22    0.94
Greater than
 cut off           689      248       8.0       0.62      4.33    1.63
Silver Copper      366      324      10.4       0.61      0.14    0.09
Silver Copper
 Zinc Lead         323      198       6.4       0.52     10.49    2.18

The mineralization of Sierra Mojada is sedimentary and is deposited in beds of limestone. There are two types of sulfide deposition, one with high silver and copper with less than 1% zinc and lead, the other is high silver, copper, zinc and lead. These two types of mineralization are deposited in different beds and are physically separate bodies and will be mined separately. The Greater than cut off category includes both types of mineralization and is the average grade of samples considered to be above a minimum cut off grade.

At metal prices, considered to be conservative for long term price estimates, of silver $5.00 per ounce, copper $0.75 per lb., zinc $0.50 per lb., lead $0.25 per lb., the above grades have values of: -0-

Greater than cut off          $107
Silver Copper                   62
Silver Copper Zinc Lead        168

Mining and milling costs in Mexico are estimated at $20 per tonne and a conservative estimate of Net Smelter Return is 50% of the gross metal values of the ore, giving revenues of: -0-

Greater than cut off          $33 per tonne
Silver Copper                  11 per tonne
Silver Copper Zinc Lead        64 per tonne

Drill Program

Ore Reserve Definition: "That which can be profitably extracted from resources that are so well defined geologically and which have been sampled in such detail that the size, shape and mineral content are well established." USBM/USGS, 1980.

From the data generated by Metalline's work and the data compiled from the previously announced Penoles data, Metalline will start the first phase of a multi-phase reverse circulation and diamond drilling program. This first phase is scheduled to begin December 1, 1998.

The drill program must accomplish two things, determine the tonnage and the average grade of the ore body. Metalline's initial goal is to define a mineable reserve of at least 2 million tonnes. A reserve sufficient to justify a mine with a production rate of 1000 tonnes per day and the basis for the preparation of a feasibility plan and ultimately a producing mine.

The first phase is budgeted for $300,000 of reverse circulation and diamond drilling. This program is estimated to require two or three months to complete. It will consist of about 10,000 meters of drilling with about 30 holes.

The primary target will be the Encantada sulfide zone indicated by the Penole's drilling and Metalline's sampling. The holes will be drilled to confirm the grades indicated by the Penoles drill holes and to define and extend the Encantada silver, copper, zinc, lead sulfide zone. The zone is known to contain ore grade mineralization for a length greater than 400 meters with a width in excess of 100 meters and with a vertical extent greater than 100 meters, a volume of 12 million tonnes. The second target will be to test a few of the zinc oxide targets indicated from the Penoles and Consejo Recursos Minerales data, with an emphasis on testing vertical continuity. The third target will be to drill some deep holes, plus 400 meters, to test the deep potential and to acquire the necessary geologic information to correlate the stratigraphic section on both sides of the Sierra Mojada fault. This information is necessary to guide future exploration to locate new ore targets on both sides of the fault. The sulfide ore beds north of the fault will be present at depth south of the fault and should contain the same type of ore bodies that occur on the north side of the fault. In addition, there are untested sedimentary units at depth that are potential hosts for ore.

These deeper sedimentary units were deposited earlier in the basin formation process at Sierra Mojada, occur below the present level of mining and are untested. These units offer excellent potential for additional ore discovery and could well contain the largest and best grade ore bodies. In sedimentary systems it is common for the early episodes of mineralization to be stronger and to deposit the largest ore bodies. The mining, mapping and sampling clearly demonstrates that mineralization is episodic throughout the 100 meters presently mined. Ore grade mineralization is exposed in the deepest levels of mining and some of these, like the Encantada, are the best targets for reserve development generated to date. The probability for discovery of ore at depth is considered to be very good.