Coleville Resources - Update on Operations in Venezuela.

CALGARY, Alberta--(BUSINESS WIRE)--Jan. 27, 1997--Coleville (Alberta Stock Exchange: CLL) -- Coleville Resources Ltd. has recently received an independent geologist's summary report from Mr. Gordon Hilchey of Gordon Hilchey and Associates Ltd., professional engineers, in which he states: "The Pemon Concession is generally well managed and the records of diamond and gold production are in order.

In early November the operations were described by Mr. Chris Atwood, Coleville's mine manager, as "exploration," although they could have been better described as "Small Production Mining." The report continues, stating a recent exploration program following the method recommended has "resulted in outlining an area 300 metres by 500 metres by 3 metres deep (450,000 cubic metres) of possible reserves of diamonds of similar value to the ground already mined in the exploration/exploitation program."

The gold values recovered have been minor; however, the present program initially focused on the recovery of diamonds. Sufficient gold has been recovered that Coleville is presently considering a gold recovery program recommended by Mr. Hilchey to be implemented within 60 days.

Coleville's Venezuelan operation on the Pemon Concession has changed significantly in the last few months. As previously discussed, the operation has identified its first sizeable diamond channel and intends to concentrate its efforts on continuing to produce and expand its production in this area. Coleville has completed construction of its work camp which can presently accommodate up to 60 workers and employees. The Corporation has its own power plant, earth movers, mechanical shop and nine sets of production equipment, two of which will continue to explore new areas for future production. Coleville recently began to "gear up" after being on "skeleton staff" during the Christmas and New York season. Production from the exploration/exploitation phase has yielded to December 31, 1996 260 grams of gold and 575 carats of diamonds from 2830 cubic metres of material mined. The largest diamond was 7.8 carats, and many are between 1 and 3.5 carats. The average size of the diamonds was 0.125 carats with 92 percent being gem quality diamonds and 8 percent industrial diamonds. Mr. Chris Atwood has also completed construction in nearby Santa Elena De Uairen of Coleville's residence/office/equipment yard and a 42 foot fuel launch for the transportation of fuel/supplies by river during the rainy season.

The indicated possible reserves to a depth of three metres in the initial mineable channel is 91,431 carats which represents less than 1 percent of the total of 1710 hectares of Coleville's property. Coleville is also presently testing several other areas for their potential. Corporate Developments

Coleville is pleased to announce that it has recently entered into the following agreements:

The Corporation has entered into a consulting agreement with PubCo Services Inc., a Victoria based company controlled by Mr. Richard Haderer, formerly with the Alberta Stock Exchange. PubCo will assist the Corporation with regulatory and compliance matters relating to The Alberta Stock Exchange.

Coleville signed a letter of engagement with Rileys Data Service to supervise the day to day administration accounting needs of the Company.

Coleville has executed an engagement letter with the mining engineering and consultation firm of Watts, Griffis McOuat Limited to perform the task of completing a certified appraisal of the equipment and infrastructure of the "Ojolali" mining project in Sumatra, Indonesia, as well as to provide other similar consulting duties on an ongoing basis.

CONTACT: Silicon Capital Corp.

Gerry Belanger, 403/205-3660

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