Chase Resource/Delta Gold High Gold Grades at Cikondang Mine, West Java.

VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--Dec. 4, 1996-- CHASE RESOURCE CORPO(TSE:CQS.) DELTA GOLD MINING CO(VSE DTG.) Mr. Ian Rozier, President & C.E.O., is pleased to announce the results of an analysis of drillholes at the Cikondang Gold Mine in West Java, Indonesia.

Chase Resource Corporation and Delta Gold Mining Corporation are equal partners in a 90 percent interest in Persada Mas Triagung which has a 77.5 percent interest in Panen Antam Emas, the joint venture company that controls the Cikondang Mine. The balance of 22.5 percent of Panen Antam Emas is retained by PT Aneka Tambang, the Indonesia State Mining Corporation.

A total of 63 diamond drillholes were previously completed over a 1km strike length at Cikondang. Drilling of the highly brecciated quartz vein resulted in fragmented core and poor recoveries and several holes were abandoned; this is a common problem in Indonesia due to the very young age of mineralization and its occurrence in tectonically active volcanic zones. However, in most cases the drilling provided a good idea of mineralized thicknesses, but gave a poor indication of grade because of the poor recoveries.

Data from 34 holes with adequate recovery that intersected the mineralized structure indicates an average true thickness of 2.3m with an average grade of 14.7 g/t gold, 34.4 g/t silver and 3.7 percent zinc, with average core recovery of 80 percent. Underground channel assay data yielded average grades of 15.1 g/t gold, 35 g/t silver and 3.3 percent zinc.

Several drillhole intercepts yielded spectacular grades from areas beyond the limits of the underground workings. For example, CDD 24 intersected a zone with a true thickness of 5.3m with a gold grade of 23.6 g/t and 125.3 g/t silver, WITH ONLY 65 percent CORE RECOVERY. Similarly, CDD 33 cut a true thickness of 1.9m with a gold grade of 56.5 g/t and 105.7 g/t silver, with 80 percent core recovery. The deepest mineralized intersection was in CDD 48 between 184.5 and 190.5 which cut 6m at 7.7 g/t gold and 46.5 g/t silver in what appears to be a parallel structure to the main vein.

A summary of assay results from holes along the explored area of the Jurasan No.1 vein is shown on the attached table along with a drillhole location plan. Several important features of the Cikondang deposit have been identified;

1) Except where several drillholes are available on the same cross- section, the orebody was assumed to be vertical. This is often not the case and can lead to underestimation of thickness (and tonnage).

2) Where recovery is low, the heaviest particles (ie the sulphides which contain the gold) are most likely to remain in the hole and the resulting grades of the sampled core will be lower.

3) Where core was lost a grade of zero was assumed. Since the mineralized intervals are most brecciated, these are the sections most likely to be lost. Therefore, the actual grades could increase dramatically.

4) High grade mineralization extends to depths of at least 200m. The drill data suggests that the Jurasan No.1 Vein is a major mineralized structure that most probably continues depths well below 200m.

5) High grade mineralization was intersected along a strike length of over 1000m and encountered at the extreme north and south of this zone (CDD 19 to the north and CDD 12 to the south). The Jurasan No.1 Vein, however, is known to extend 2,000m to both the north and south beyond these holes and the drilling indicates that the mineralization continues along strike.

6) Steep, near vertical dips and mineable vein widths indicate the possibility of optimum mining recoveries.

Proven and Probable reserves from an 850m section of the drilled area only, and to a depth of only 200m, are estimated to be in the order of 430,000 tonnes with an average grade of 13.4 g/t gold, with additional inferred reserves of 300,000 tonnes at 13.1 g/t gold. With poor core recoveries and higher average grades from underground sampling, the Company considers these reserve estimates to be conservative in both tonnage and most importantly, in grade. Only a small portion of the Jurasan No.1 Vein has been explored and the mineralized structure remains open along strike and at depth.

The Company will begin an aggressive diamond drill program at Cikondang to expand reserves and confirm the higher grades indicated from the data review. This program will be aimed at acquiring enough technical data to complete a prefeasibility study by the end of 1997 and a full feasibility study by the end of 1998.

The joint venture partners are confident that Cikondang will become a significant gold producer in West Java, which is already established as a major gold province in the region.

CIKONDANG: SUMMARY OF DRILL RESULTS

Hole   From   To    Int.  True W.   Au     Ag    Core Rec.
#      (m)    (m)   (m)    (m)     (g/t)  (g/t)  (percent)

19     41.5   48.1   6.6    3.7     6.9   74.4      87
42    100.6  101.6   1.0    0.6    29.9   71.0      33
24     49.4   60.0  10.7    5.3    23.6   43.1      65
 7     89.1   97.7   8.6    5.7     9.5   22.1      54
50     94.9   99.0   4.1    1.8    29.5   73.1      79
44     94.0  105.0  11.0    6.0     8.0   55.3      71
33     64.3   68.1   3.8    1.9    56.5   67.1      80
48    169.1  172.4   3.3    1.8    13.7   45.1      99
47    145.5  150.0   4.5    2.7    64.5   86.7      77
 2     62.9   65.6   2.7    1.9    18.5   51.1      62
17     34.1   35.7   1.6    0.8    18.1   32.7      70
58    118.0  120.7   2.7    1.0    23.0   25.9      81
 9    131.9  134.8   2.9    2.0     6.2   46.0      96
15     39.1   51.2  12.1    6.0     8.9   18.0      90
 4    157.4  167.4  10.0    5.4     5.7   42.3     100
12     31.2   34.9   3.7    2.6    13.5   41.6      66

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CONTACT: Chase Resource Corporation

Ian Rozier, 604/ 685-6851