Chase Resource Corp.: Drilling Underway to Confirm 10 Million Tonne Oxide Gold Deposit at Archangel Project in Philippines.

VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--Jan. 28, 1997--CHASE RESOURCE CORP. (ToSE: CQS.) Chase Resource Corporation's wholly owned subsidiary in the Philippines, Chase Minerals (Philippines) Corporation, has concluded an option agreement to acquire a 100 percent interest in the Archangel Property in southeastern Batangas Province, Philippines, about 120 km south of Manila. The property is comprised of 15 contiguous claims totalling 1,215 hectares on the southern coast of Batangas.

Terms of the option agreement with local claimowners requires payment of Philippine Pesos 500,000 (approx.Cdn $25,000) annually for 5 years to acquire a 100 percent interest subject to a 3 percent Net Smelter Royalty to the claimowners. Chase has the right to incorporate the claims into its Financial and Technical Assistance Agreement (FTAA) application area which covers much of Batangas Province, including the Company's Taysan and El Paso projects to the northwest. Chase retains a first right of refusal over any proposed sale or transfer of the claimowners' royalty rights.

The Archangel Property was mined for gold in pre-Spanish colonial times and for copper by the Japanese during WWII, and several old tunnels and dumps are in evidence around the area. Limited modern exploration was completed between 1988 and 1991 when Western Mining Corporation of Australia prospected the area and drilled six holes. This work identified three key areas of mineralization in three prominent hills, Balibago, Pulang Lupa and Kay Tanda, near the center of the property. Most of the previous exploration was concentrated at Pulang Lupa and Kay Tanda where flat-lying silica sheets of at least 50m thickness have been found to host gold. Surface rockchip sampling of these zones has returned values up to 12.5 g/t gold. Previous drilling of the silica zone at Kay Tanda returned values of 0.9 g/t over 56m, 0.7 g/t over 44m and 1.2 g/t over 19m, as shown on the attached cross-sections. Mapping of the exposed portion of the silica sheet at Kay Tanda alone suggests approximately 10 million tonnes of low grade, oxidized gold ore amenable to very low strip-ratio mining and heap leaching. Excellent potential exists for additional tonnage to the west and for the discovery of higher grade feeder zones beneath the silica sheets.

At Balibago, the mineralization is associated with phyllic alteration and widespread high base metal soil geochemistry of up to 600 ppm Zn and 500 ppm Cu. Gold bearing silica sheets have also been recognised on Balibago Hill above the base metal mineralization. The alteration, base metal and gold mineralization lateral to the silica bodies at Balibago is indicative of a large tonnage porphyry copper target.

The Archangel gold-copper project is one of several projects currently being explored in Batangas Province having been identified during regional exploration of the Company's FTAA, which covers a highly prospective mineral province in central Luzon.

CONTACT: Chase Resource Corporation

Ian Rozier, 604/ 685-6851