Coleville Resources - Mining Update.

CALGARY, Alberta--(BUSINESS WIRE)--Dec. 4, 1996--Coleville Resources (Alberta Stock Exchange CLL.) (CLL) trading on the Alberta Stock Exchange ("ASE"), is pleased to announce that it acquired previously unknown and unpublished geological reports on the Company's Ojalali Property, in the Lampung Province, South Central Sumatra.

This data from the maps and reports received to date and compiled with the recently completed sampling and assaying program by Coleville and Barrick Gold Corporation's Geologists is being plotted on a master chart (as follows). The highlights and conclusions of the Barrick findings, follow in quotes:

"INTERIM CONCLUSIONS: From the interpretation of the data made available to date by Coleville Resources and the sampling and brief reconnaissance by Barrick and Coleville, it is still apparent that there are 4 areas that could contain potential interest to Barrick. These areas are:

Bukit Jambi in broad mineralized stockworking and breccia zones (northern part of Zone VII);

Batu Kuning in a narrow bonanza vein (Zone VI); Area C1 in a zone of pervasive alteration and stockworking (not sampled) with some high grade veins that were sampled;

Bukit Kencur in a zone of pervasive alteration and stockworking (not sampled) with some high grade veins that were sampled.

Extensive soil anomalies in the Way Neki area and south of Area B7 are untested and warrant follow up."

In view of the above findings Coleville has decided to keep its options open to further negotiations for the development and exploration of the properties. Coleville is continuing its negotiations with several third parties who are interested in the joint venture development of the potential Ojalali Gold Property. It is Coleville's intent to utilize the information and recommendations contained in the Barrick report to initiate its own drilling program in the designated target areas.

Coleville has completed registration of the 29,727 hectares of contiguous lands surrounding the Ojalali Gold Property as previously reported, from Noramco Capital Corp. for a consideration of CDN $500,000.00 and 1,000,000 Coleville shares at a deemed price of $2.00 per share, subject to regulatory approval. Coleville has further elected to allow the option on the remaining 370,000 + or - hectares (June 14, 1996 Agreement 60 day option) to lapse.

Coleville's board of directors has elected to terminate its Agreement dated June 28, 1996 with Cinque De Sutton due to its inability to perform under its obligations. The deposit of US $100,000.00 advanced for this property was refunded and the 1,000,000 shares issued but not advanced were cancelled. The US $100,000.00 recovered was subsequently used in the acquisition of 2,576 hectares located on the Island of Kalimantan, in the Timur area. This new and slightly larger property of merit was acquired by Coleville on August 19, 1996 from PT. INDOCAN LESTARI MURNI as an 80 percent C.O.W. property, for a one time payment of US $300,000.00 purchase price, which has been paid.

Based on the recommendations of the potential JV partners and its senior management, Coleville has turned over all of its historical, assays and drilling data to Watts, Griffis and Mc Quat Limited for their review, analysis, plotting and reporting purposes as well as their establishment of an exploration program and a data base. Watts, Griffis and Mc Quat have been formally retained and along with their staff in Indonesia will be compiling and processing all available data of both a current and historical nature.

It is anticipated that the next three steps suggested by Barrick of: (i) Further Review and Compilation of existing Data; (ii) Further Sampling on the Four Target Zones identified; and (iii) The design and implementation of a Drilling Program to establish proven reserves, should all be completed within a ninety day time window, from their inception to their completion.

Coleville is also currently compiling and where necessary obtaining, documentation for the Alberta Stock Exchange on the following matters:

- OJALALI: extension to mining permits, and title opinion; (Sumatra I Property)

- KALIMANTAN: status of agreements with Indocan along with translated maps, property title documents, and title opinion;

- NORAMCO CORP.: title opinion, translated maps, and title documents; (Sumatra II Property)

- The Corporation's: October 1, 1996 Press Release announced that geological reports were submitted to the ASE for review and the Corporation's response to the ASE's review will be the subject of a further news release in the near future.

Coleville further expects to release news on its exploration / exploitation of its Diamond and Gold project in Venezuela within the next several weeks. A Canadian geologist has been on the property to evaluate, verify and report on the exploration findings to date. Once the geologist's report has been received, the findings will be released in subsequent news releases.

               TABLE 1: BARRICK SAMPLE DATA

AREA TYPE OF  SAMPLE #'S  # OF  AVERAGE AVERAGE BEST Au BEST Ag
     SAMPLING            SAMPLES  (ppm) AG(ppm) VALUE   VALUE
                                                (ppm)   (ppm)
---- -------- ---------- ------- ------ ------- ------- -------
B7  2m T&C  957301-957363   63   0.202   6.546  1.12    49.2
                                             (#957350)(#957357)

B7  1m/2m   957364-957387   24   0.129  19.133  0.339   113.0
    T/C/G                                    (#957364)(#957370)

B7  1m      957388-957406   19   0.197  14.747  1.15    61.3
    T/C/G                                    (#957400)(#957393)

B7  1m      957407-957432   26   0.127   1.361  1.30    9.0
    T/C/G                                    (#957431)(#957431)

B6  2m      957433-957445   13   0.586  23.061  4.72    164.0
    T & C                                    (#957445)(#957441)

JAMBI
    2m/1m   957446-957493   48   1.158  1.1575   5.1    11.2
    T & C                                    (#957482)(#957465)

JAMBI  2m   957494-957634   41   1.600  1.239   7.58    26.3
    T & C                                    (#957498)(#957631)

BATU   2m   957635-957647   13   1.282  29.653  9.57   163.0
KUNING T & C                                 (#957647)(#957645)

C1  Dump    957648-957657   10   7.212  66.550  45.97  220.0
    T/C/G                                    (#957654)(#957648)

C2  Dump    957658-957684   27   0.201  3.549    1.12   43.1
    T/C/G                                    (#957675)(#957684)

BUKIT
KENUR Dump  957685-957698   14   5.544  11.200  37.07   34.9
      T/C/G                                  (#957685)(#957693)

Umpu 2m     957701-957724   24   0.048   0.500  0.149    0.5
     T/C/G                                   (#957708)

Umpu 2m     957725-957735   11   0.103   0.772  0.844    2.00
     T/C/G                                   (#957725)(3957726)
                                                      &(957732)

NOTES:

1).  B7; B6; Jambi; Batu Kunning; C1; C2; Bukit Kenur; & Umpu are
all names of various zones on the property.
2).  T= Trenching; C= Channeling; G=Grab; & Dump=Previous Materials

-0- The above release has neither been approved or disapproved by the Alberta Stock Exchange.

CONTACT: Coleville Resources Limited

Thomas Milley, 800/976-1122

604/327-9040