Ciclo Capital Ltd. Announces Letter of Intent.

TORONTO--(BUSINESS WIRE)--Oct. 14, 1997--Ciclo Capital Ltd. (Alberta Stock Exchange CIO.) Ciclo Capital Ltd. (a junior capital pool company) is pleased to announce that it has entered into a Letter of Intent to make an offer to acquire at least a 90 percent interest in Minesource Exploration Ltd. ("Minesource"), through the issuance of treasury shares of Ciclo.

This Agreement will constitute Ciclo's Major Transaction. The transaction will not involve the change of control of Ciclo.

Minesource is a natural resource exploration corporation. It currently is the holder of an option to acquire a 100 percent working interest in a gold property located eighty (80) kilometres south west of the City of Timmins, Ontario (the "Property"). The Property is approximately 3200 acres and consists of 80 claim units. Minesource is in the process of conducting a $100,000 exploration program on the Property and expects to complete the program in December of 1997. The program includes linecutting, magnetic and I.P. as well as mapping and prospecting and geochemical analysis. Minesource will obtain a geological report when the program has been completed. Minesource also has approximately $300,000 in cash.

The proposed terms of the Major Transaction are as follows:

1. Kerry J. Knoll and Ian J. McDonald, the controlling shareholders of Ciclo, currently own 35.12 percent of the outstanding capital of Minesource. Messrs Knoll and McDonald will agree to tender their shares of Minesource to a take-over bid of Minesource by Ciclo;

2. Ciclo will make a formal share exchange take-over bid to acquire all of the issued and outstanding securities of Minesource as at the date of closing of the Major Transaction on the basis of one (1) common share of Ciclo for each issued and outstanding common share of Minesource;

3. Ciclo will issue 4,295,833 common shares if 100 percent of Minesource is acquired;

4. an aggregate of 10 percent of the outstanding capital of Ciclo, after giving effect to the proposed Major Transaction, will be reserved for stock options to be granted to the officers, directors and employees of Ciclo;

5. following the completion of the Major Transaction, the directors of Ciclo will be:

IAN J. McDONALD                 KERRY J. KNOLL
CATHERINE HANSEN                DUNHAM CRAIG

Messrs. McDonald and Knoll and Ms. Hansen are currently the only directors of both Ciclo and Minesource. Following the completion of the Major Transaction, an additional director will be added to the board of Ciclo.

The following is a brief overview of the background of Mr. Dunham Craig:

Mr. Craig is a geologist with 9 years experience in both base metal and gold exploration. He received his B.Sc. in geology in 1988 from the University of British Columbia. Mr. Craig worked as an employee and consultant for Cominco Ltd. and Kennecott Canada Ltd. between 1992 and 1993. Since 1993, Mr. Craig has been Vice-President, Corporate Development for Wheaton River Minerals Ltd. a TSE listed company. Prior to obtaining his degree as a geologist, Mr. Craig worked for 15 years in the natural resource and construction sectors giving him a broad base of knowledge utilized in mining project development.

All transactions are subject to due diligence review by Ciclo and Minesource and to approval by the minority shareholders of Ciclo and by regulatory authorities.

CONTACT: Ciclo Capital Ltd.

Ian J. McDonald, 416/ 860-0919