Coleville Resources Mining Update.

CALGARY, Alberta--(BUSINESS WIRE)--Oct. 6, 1997--Coleville (Alberta Stock Exchange: CLL) -- Coleville Resources Limited (CLL) is pleased to report that it has received a series of ongoing detailed reports from its major Joint Venture partner, Antares Mining and Exploration Corporation (ANZ-TSE) on their extensive exploration activities on the 2,244 hectare Ojolali property in Sumatra, Indonesia.

ANZ reports..."Exploration Results Enhance Economic Potential of Ojolali Property" in a Press Release slated for publication on October 6, 1997. ANZ reports that based on the results of its scout drill exploration program, as reported in the following body of this release, that they are most encouraged on the potential of the Ojolali property to host economic mineralization.

JAMBI ZONE

"A deep auger soil sampling program, which collected weathered bedrock material, has resulted in extensive and consistent old, arsenic and antimony geochemical anomalies which are considered to be the expression of sub-surface precious metal mineralization. The soil auger geochemistry, geological mapping and channel sampling at Jambi has identified a target zone in excess of 1,000 meters in length and 600 meters wide at the centre, with the anomaly open to the north east and south west. To date, the anomaly has been drill tested over 350 meters of strike which has confirmed the existence of wide zones of gold and silver mineralized oxidized volcanics. The results obtained so far are very encouraging for the definition of a large tonnage, heap leachable gold resource. Assays are as follows:

        Interval  Width     Gold     Silver    Gold Equivalent
Hole    (metres) (metres) (g/tonne) (g/tonne)     (g/tonne)
--------------------------------------------------------------
JDH001    7-92      85       1.18     6.0           1.27
JDH002   10-74      64       1.68     6.0           1.77
JDH003    9-87      78       1.53    14.0           1.73
--------------------------------------------------------------

Gold equivalent = Gold Value = silver value divided by 70

Holes JDH004 and JDH005 returned similar grades over shorter intervals. A preliminary polygonal resource calculation, based on drilling conducted thus far on the Jambi zone, infers a resource of approximately 1,900,000 tonnes with a gold equivalent grade of 1.57 grams per tonnes, assuming a bulk density ration of 2.2 tonnes per cubic metre.

SOUTH TAMBANG

The scout drill active on the South Tambang zone has intersected a significant 6.4 to 28 metre thick quartz sulphide vein which assayed as follows:

         Interval  Width     Gold     Silver   Gold Equivalent
Hole     (metres) (metres) (g/tonne) (g/tonne)   (g/tonne)
--------------------------------------------------------------
RTH002     6-14       8       0.42     308          4.82
RTH003    31-40       9       0.94     300          5.23
RTH004(1) 84-90.4   6.4       0.32     105          1.82
RTH005    10-31      21       0.47     189          3.17
RTH006    42-70      28       0.88     231          4.17
--------------------------------------------------------------
(1) Hole ended in mineralization

The South Tambang vein strikes north/south and dips consistently at 50 degrees west, RTH002, RTH003 and RTH004 were all drilled on the same section and prove the vein persists from surface, down-dip of at least 100 metres. While drilling has tested the Tambang vein over a strike length of 100 metres, the vein has been well mapped over 800 metres and has yet to be confirmed correlations with other vein outcrops suggest a possible strike potential of 2.4 kilometres. The widths, continuity and grade of the South Tambang vein are deemed to be very encouraging. A systematic drill program is being implemented at South Tambang initially involving three drill holes per section. A second drill has now been deployed at the South Tambang zone and a third is

BEING MOBILIZED.

Drilling results to date on the South Tambang zone infer a resource approximately 1,000,000 tonnes with a gold equivalent grade of 3.87 grams per tonne, assuming a bulk density ration of 3.0 tonnes per cubic metre. The vein thickness, moderate dip and topographic position of the mineralization, together with the competent nature of the wall rocks, would be advantageous in the event of open cut mining at South Tambang. Metallurgical SAMPLING HOLES WILL BE DRILLED SHORTLY.

BATU KUNING ZONE

Promising quartz carbonate veining has been intersected with the following results:

Interval  Width     Gold     Silver   Gold Equivalent
Hole     (metres) (metres) (g/tonne) (g/tonne)   (g/tonne)
--------------------------------------------------------------
BKH003     1-4      3.0      1.54       71           2.55
          24-27     3.0      1.81       29           2.22
BKH005   9.4-10.6   1.2     111.5       42          112.1
BKH007    87-91     4.0      4.72       38           5.26
BKH009    92-96     4.0      5.45        8           5.56
BKH010    42-65    23.0      1.80       23           2.13
--------------------------------------------------------------

Holes BKH002, BKH004 and BKH006 returned either lower grades or shorter intervals.

The structural controls on the minerlization at Batu Kuning are complex and some of the veins intersected in the drill holes have no known surface expression. This makes it difficult, at this stage, to define strike and depth potential although geological mapping has defined extensive, multiple zones of vein over a north/south distance of at least 1,000 metres. The drill intersections obtained thus far are encouraging in the pursuit of epithermal vein style mineralization.

KRESNA AREA

Geological mapping at Kresna has identified three mineralized areas with promising gold and silver values from outcrop sampling. The mineralization occurs in veins, vein breccias and well developed quartz-pyrite stockworks. Visible gold encountered at the Way R zone is considered to be of hypogene origin suggesting that the elevated gold values are derived from a primary hydrothermal source, enhancing the potential for mineralization persisting to depth. Preliminary assays from samples collected from the Way Kemiling zones are also very encouraging, with elevated (>g./t) gold values from discontinuous sampling over a width in excess of 40 metres.

The Way Kemiling and Way R zones are over 400 metres apart and are aligned northeast, which is the dominant mineralization trend at Ojolali. Between these prospects is an elongated accumulation of vein breccia boulders trending northeast, which supports the correlation between the Way Kemiling and Way R zones and the north east trend of the zone as a whole. The potential target at Kresna is therefore interpreted as being in excess of 400 metres long and 40 metres wide with good depth potential and is considered an exciting exploration target. Further mapping and completion of a soil auger program will be completed prior to drill testing this promising target.

AEROMAGNETIC STUDY

The contour maps arising from the recently completed aeromagnetic study of the Ojolali property have recently been received and initial interpretations are currently underway. Preliminary interpretations indicate that all known mineralization on the property occurs in a similar magnetic environment and this will facilitate future targets selection based on their magnetic signatures. Earlier drilling conducted on the Kencur and C1 zones detected little significant mineralization and the programs on these zones have been suspended pending reinterpretation of the drill results and new information available from the aeromagnetic study."

SUMMARY ON INDONESIAN PROPERTIES

While no exploration work has been conducted on the surrounding 29,700 hectare property by ANZ to date, this area was included in the recently completed aeromagnetic survey. The preliminary results of the aeromagnetic study, combined with exploration results to date have enhanced the potential of the combined Ojolali properties, to host economic precious metal mineralization. An exploration team of over 70 persons are currently engaged on the property. Including the second drill on the Soung Tambang zone, there are now four drills active on the property with fifth being mobilized. Approximately 4,300 metres of drilling have been completed to date. The Ojolali property is serviced by road and trail access and a full sized exploration camp exists, including housing and helicopter pads.

ANZ has engaged Strathcona Mineral Services Limited of Toronto, to act as Consulting Geologists to audit all drill results from ANZ's exploration properties on an annual basis and report thereon to the company's board, the Joint Venture Partners and the general public, through press releases.

Maps of the drilling programs on the various Ojolali zone, as defined in the above narrative, are available on request.

CONCLUSIONS OF CLL

CLL is most encouraged by the results of ANZ's exploration program and the assumptive conclusions drawn therefrom. CLL's net carried position of 13.5 percent of the overall aggregate of the Indonesian Properties continues to grow in potential net realizable value, the specific dollar amounts assignable will probably become more clearly known over the next several weeks as ANZ and its exploration crews complete their in-depth exploration drilling and sampling programs and have these results audited.

In the meantime, CLL, intends to utilize the funds received from the pending closing of its Joint Venture transaction with ANZ on these subject properties, to complete their own financing of the in-depth exploration drilling program on CLL's Pemon Concession properties in Venezuela. Existing and ongoing exploration results along with recently completed aeromagnetic data in the Pemon Lands, continues to indicate that CLL has a strong possibility of volcanic pipe as early results have yielded strong kimberlite indicators as the drill program continues on this property. CLL expects to be in a position to release additional news on its Venezuelan property in the near future.

Approved on behalf of the Board of Directors by:

"Signed"

W. A. Peter Perry, CEO and director -0-

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AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED

HEREIN.

CONTACT: Silicon Capital Corp.

Gerry Belanger, 403/244-3355

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