Chase and Delta to Acquire Cikondang Gold Mine, West Java Indonesia in Joint Venture with P.T. Aneka Tambang.

VANCOUVER, British Columbia--(BUSINESS WIRE)--May 23, 1996--Ian Rozier, president of Chase Resource Corp. and Delta Gold Mining Corp. is pleased to announce that the two companies have entered into a partnership to acquire control of the Cikondang Gold Mine in West Java, Indonesia through a joint venture with P.T. Aneka Tambang, a government owned mining company, which retains a 22.5 percent interest in the project.

Cikondang is located approximately 125 kilometres south of Jakarta and is readily accessible by car via 110 km of paved highway and 15 km of unsealed road (see attached map). The property encompasses 2,475 hectares and is held under KP No. DU813/Jabar which provides an entitlement to operate a mine on the property until Jan. 4, 2018.

The Cikondang Mine was first operated by Dutch colonials in the early 1900's. Further underground development was established by the Japanese who extracted gold and base metals during World War II.

In 1991-92, an Australian/Indonesian consortium spent over $10.0 million dollars on 63 diamond drill holes and over 2,500 meters of vertical and horizontal underground development, including a decline to the lowest level at -200 meters, and a drift level to explore the main zone for a further 700 meters south of the Dutch/Japanese workings (see attached long section). Full-scale production did not proceed due to financing problems.

Based on the work completed in 1992, proven and probable reserves at Cikondang were estimated to be 430,000 tonnes with a grade of 13.4 g/t gold and 3.1 percent zinc over an average true thickness of 2.3m. Additional reserves of 300,000 tonnes at a grade of 13.1 g/t gold were inferred from drilling.

These reserves were calculated following the guidelines issued by the Australian Institute of Mining and Metallurgy, and are considered to be conservative. Underground channel sample assays yielded an average grade of 15.1 g/t gold. This corresponds well to production grades of 15 g/t gold reported by the Japanese during 1940-1942.

The Cikondang deposit is a classic epithermal gold-bearing vein system hosted by andesitic agglomerates and lavas. The vein system is subvertical, and widths of over 8.0m have been encountered in several areas; drifting did not expose the full width of the mineralized structure. Diamond drilling confirmed that significant, high grade zones are evident along the vein.

For example, drillhole CDD33 intersected 3.8m at 56.5 g/t, CDD47 intersected 2.7m at 64.5 g/t, and CDD50 intersected 4.1m at 29.5 g/t gold. The underground development explored approximately 900m of strike of the vein, to a depth of 200m only. The Jurasan No. 1 vein has been traced for at least a further 2,000m to both the north and south. Only a small portion of the known strike length of Jurasan No. 1 vein has been tested.

Limited sampling of vein outcrops has confirmed the gold- bearing nature of these unexplored extensions, and the deposit remains open both along strike and down-dip. The overall potential in this vein alone could exceed four million tonnes. The Jurasan No. 1 vein is one of five identified veins with similar strike dimensions across the Cikondang property (see attached map).

The Cikondang minesite comprises both mineral and surface rights. Site offices, workshops, plant and equipment, storage warehouses, mine vehicles, accommodation and high capacity electrical generators are already in place and are included in the transaction. The area surrounding the site is agricultural and there is no local population living on the site and no small scale mining activities.

Chase and Delta have formed a 50:50 owned subsidiary in Barbados to hold the interests in the Cikondang Property. KP DU813/Jabar is held in an Indonesian company, P.T. Panen Antam Emas, which in turn is owned as to 22.5 percent by P.T. Aneka Tambang and 77.5 percent by P.T. Persada Mas Triagung.

The Barbados subsidiary of Chase and Delta has entered into agreements with the shareholders of Persada Mas Triagung and the creditors of Panen Antam Emas to acquire 90 percent of the shares of Persada Mas Triagung and 100 percent of notes payable by Panen Antam Emas having a value of about U.S.$14.0 million, for total consideration of U.S.$1.5 million ($750,000 each from Chase and Delta).

The debt notes acquired in this transaction arise from advances made by previous investors in the project and are repayable from production proceeds. A finders fee will apply in this transaction.

P.T. Aneka Tambang owns and operates the Gunung Pongkor Gold Mine, as well as the country's largest gold refinery, two nickel mines, a nickel smelter, and has extensive exploration and development experience in precious and base metals throughout Indonesia.

Terms of the joint venture agreement between P.T. Aneka Tambang and the companies provide that the project shall be managed jointly through the equity interests in Panen Antam Emas and that Aneka Tambang's equity interest shall be free carried through to production. Chase and Delta will participate in the proceeds of production through their equity interests and repayments of the debts.

The company intends to initiate an aggressive diamond drill program at Cikondang to expand reserves beyond the proven ore blocks in the Jurasan No. 1 vein. The drill program will be followed by dewatering of the underground workings and further underground exploration/development. Exploration drilling will also target the extensions of the Jurasan No. 1 vein and the other adjacent veins which have been revealed by old workings.

The company is confident that this next round of exploration will justify a positive production decision in the near future.

The acquisition of the Cikondang Mine is an integral part of the longterm corporate plan for Chase and Delta. Management are confident that Cikondang will become a gold producer providing sustainable cash flows and a secure financial future for both companies. -0-

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

CONTACT: Chase Resource Corp.

Ian Rozier or Michael Callahan, 604/685-6851

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