Chase/BHP Option Major Concession in Philippines.

VANCOUVER--(BUSINESS WIRE)--March 20, 1996--CHASE RESOURCE CORP. (TSE:CQS) Chase Resource Corporation, in conjunction with BHP Minerals International, has concluded an Exclusive Option Agreement to acquire up to 100 percent of the rights to over 110,000 hectares of mineral claims in Aurora and Nueva Ecija Provinces. The properties lie in the Sierra Madre mountain ranges about 150 km northeast of Manila on Luzon Island, Philippines. Historically, this region has produced several major mineral deposits including Climax Mining's Didipio Gold/Copper Project to the north which is presently at feasibility stage. The Aurora Project is a joint venture between BHP (70 percent) and Chase (30 percent) with Omni Mines Development Corporation, a Philippine company, as vendor.

The claims lie near the southern end of the coastal range and where work to date has been confined to reconnaissance and prospecting, with sporadic small-scale mining. There has been no modern, detailed exploration of the property. Nevertheless, several significant prospects have already been identified on the southern end of the property by Omni and Chase geologists.

Two large zones of copper-gold porphyry style alteration have already been outlined by surface sampling at Diteki and Dupinga. Preliminary prospecting of these areas has indicated the potential for large -tonnage disseminated copper and gold deposits, (see map attached). To the west and in between these zones, several NW trending structures parallel to the adjacent Philippine Fault, have also been sampled and shown to be strongly mineralized. At two of these, the Villa and Tenebos prospects, massive sulphide mineralization has been traced over a strike length of over 1 kilometre with widths of over 60m. Rockchip sampling at the Villa prospect has returned values of up to 4.1 percent Cu, 16 percent Zn and 0.24 g/t Au.

An extensive exploration program has already begun to allow rapid, first-pass evaluation of the entire tenement. Four separate field crews with helicopter support have been mobilized to the property to conduct regional stream sediment and pan concentrate sampling along with more detailed mapping and surface sampling of the previously recognized prospects.

BHP and Chase will be responsible for funding all work on the properties on a 70/30 basis. BHP is the operator but will initially be utilizing Chase personnel and equipment for the program. Under the terms of the option agreement with Omni, Chase's share of option payments would be US$705,000 over 5 years ($31,500 in the first year). Minimum work commitments during the six year option term total US$5.8 million. Chase's obligation would be US$1.74 million ($90,000 in year 1). Under certain circumstances, the option term may be extended beyond the six years for additional payments to Omni and work on the property.

Upon completion of the work commitments and payments, Omni can elect to sell 100 percent of its interest in the properties at a cost to Chase of US$7.5 million. Alternatively, Omni could join the joint venture with BHP and Chase by retaining a 25 percent interest that is carried through completion of a feasibility study and selling 75 percent to BHP/Chase. Chase's cost for this option would be US$3.0 million. If Omni holds a retained interest at the completion of a feasibility study, it shall either participate in the funding of a mine development or alternatively, elect to sell its remaining interest to BHP/Chase.

BHP and Chase have entered into a joint venture agreement which parallels the agreement between the two companies on Chase's Taysan Copper Project in southern Luzon. Through its takeover of Magma Copper Company, BHP now holds 15.8 percent of the shares of Chase. -0-

NOTE: Location map available from the Company at the phone number listed above.

CONTACT: Chase Resource Corporation

Ian Rozier, 604/685-6851

800/510-8566 (Toll free in North America)