Chase and Delta to Amalgamate on One for Two Basis.

VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--Jan. 6, 1997-- Chase Resource Corp.(TSE-CQS.) Delta Gold Mining Corp.(VSE-DTG.) The Boards of Directors of Chase Resource Corporation (CQS-TSE) and Delta Gold Mining Corporation (DTG-VSE) have agreed to an arrangement for the amalgamation of the two companies into a new company. The amalgamated company will retain the name of Chase Resource Corporation.

The decision to amalgamate has been made by the Boards following review of independent fairness opinions prepared by Yorkton Securities Inc. on behalf of Chase and Griffiths, McBurney & Partners on behalf of Delta. Both reports conclude that the one- for-two exchange ratio represents a fair basis for the merging of the two companies. Under the plan, each existing share of Chase would be exchanged for one share of the amalgamated company. One new share will be issued for each two Delta shares that are currently outstanding.

Chase shares issued and outstanding total 16,526,472 and will be converted to an equal number of new shares. Delta shares issued and outstanding total 12,799,918 for which 6,024,959 new shares will be issued. This will result in 22,551,431 shares outstanding in the amalgamated company. Similarly, the incentive stock options outstanding in each company will be converted on the same basis, (i.e. each two options in Delta will become an option to purchase one share of the new company).

Chase and Delta have two directors, Ian Rozier and Michael Callahan, in common. They also serve as the executive officers and management of the two companies. For the past several years, both companies have been primarily focused on exploration projects in the Philippines. Recently, the two companies each acquired a 50 percent interest in an Indonesian company which controls 77.5 percent of the Cikondang Gold Project in West Java, Indonesia.

Amalgamation of the two companies will result in greater efficiencies and reduced costs for administrative and company maintenance items. Under the same continuing management, the combined company will control the full 77.5 percent operating interest in Cikondang and more than twenty separate exploration projects in the Philippines. The combined cash and working capital of the amalgamated company will be over $5 million. The combined company will have both Toronto Stock Exchange and Vancouver Stock Exchange listings with trading on the Vista board in Vancouver.

The amalgamation remains subject to the approval of shareholders of both companies, regulatory approvals, and an order from the Supreme Court of B.C. General meetings of the shareholders of both companies have been scheduled for April 25, 1997.

CONTACT: Chase Resource Corporation

Delta Gold Mining Corporation

Ian Rozier, 604/ 685-6851

800-510-8566