Colony Pacific Step Out Drilling at Beutong Discovery Expands Copper-Gold Porphyry System.

VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--Jan. 28, 1997-- COLONY PACIFIC EXPLO (TSE: CYX.) Colony Pacific Explorations Ltd. has received step out drilling results from Operator Highlands Gold Indonesia Pty on the Beutong copper-gold discovery, located on the northern part of the island of Sumatra, Indonesia. Copper and copper-gold mineralization has now been intersected over an area of 1200 meters east-west and up to 800 metres north-south. The discovery is open in all directions.

Drilling in this first round discovery phase was limited to a depth of approximately 120 metres because of the limited depth capacity of the "man portable" drill used to carry out this drilling. A larger drill rig with greater depth capacity is being mobilized for future drilling on the project.

Eight holes (13 through 20) were drilled at intervals of approximately 100 metres along Section 58400, located 800 metres west of discovery hole no 2. Holes 13, 14 and 15, collared 250 metres in elevation above the discovery hole, were entirely within weathered porphyry "leach cap" material, a common phenomenon of porphyry systems. These holes were weakly mineralized through their entire length with hole 13 intersecting .18 percent copper over 52 metres and .19 percent copper over 8 metres.

Hole 16 penetrated through the leach cap at a depth of 100 metres and intersected 20 metres grading 0.44 percent copper stopping in mineralization at 120.2 metres. Hole 17 penetrated through the leach cap at 110 metres intersecting 0.66 percent copper over 12 metres stopping in mineralization at 120.2 metres, with the last 4 metres grading 0.88 percent copper. Hole 18 penetrated through the leach cap at 34 metres intersecting 0.61 percent copper over 87 metres, also stopping in mineralization at 120.8 metres. Hole 19 was drilled almost entirely in skarn material with the last 10 metres grading 1.06 percent copper and 0.42 g/t gold. Hole 20 was suspended because of difficult downhole conditions.

Five holes (1 through 5) were drilled at 100 metre intervals along Section 59200. Hole 1 was weakly mineralized and stopped at 65 metres in diatreme. Discovery hole 2 (previously announced) intersected 1.06 percent copper over 120 metres stopping in mineralization at 121 metres. Holes 3, 4 and 5 were each drilled to a depth of approximately 120 metres in mostly porphyry material with some skarn. All three were weakly mineralized throughout their entire length with hole 3 intersecting .19 percent copper over 112 metres.

Four holes (6 through 9) were drilled at 100 metre intervals along Section 59400, located 200 metres east of discovery hole no 2. All holes were drilled to a depth of approximately 120 metres and were weakly mineralized throughout their entire length in porphyry material with hole 8 intersecting 0.29 percent copper over 110 metres.

Three holes (10, 11 and 12) were drilled at 100 metre intervals along Section 59600, located 400 metres east of the discovery hole. All three were weakly mineralized throughout their entire length in both porphyry and skarn material.

Drilling at Beutong is ongoing with at least three holes planned along Section 58800, located 400 metres west of the discovery hole.

The Beutong discovery is one of seventeen prospects identified on the northern part of the 5738 km sq Aceh property. Beutong is held under a signed fifth generation Contract of Work as is the Miwah gold copper discovery where surface sampling, geochemistry, geophysics and a preliminary 13 hole, 3144 metre drill program have outlined an extensive area of gold-copper mineralization. Results from this drill program include 1.4 g/t gold over 71 metres and 1.0 g/t gold over 58 metres. Enargite boulders, grading 10 percent to 20 percent copper discovered adjacent to the prospect area, suggest that the Miwah gold prospect may be related to a porphyry gold-copper system. Follow up drilling is planned at Miwah as well as continued drilling at Beutong.

The Colony Inco Sumatra Joint Venture has the right to acquire, subject to Indonesian government approval, a 60 percent interest in the Aceh Property from Highlands Gold Indonesia Pty by funding the next US$10 million on exploration over a four-year period. The combined effect of the Colony-Inco Strategic Alliance terms and the Aceh Property option terms are such that after Colony has spent US$6 million on Aceh, it will be carried for the next US$20.5 million in expenditures whereupon the interests of the parties in Aceh will be as follows: -0-

Colony                    24 percent
Inco                      36 percent
Highlands                 30 percent
Indonesian Partner        10 percent

Results from initial drilling at Beutong have expanded the copper gold porphyry system to an area of 1200 metres east-west by 800 metres north-south. Additional mapping, geophysical work and drilling with high capacity rigs is required to outline the full scale of the Beutong discovery. Pierre Lebel, President

NOTE: Location maps available from the Company at the phone number listed below.

CONTACT: Colony Pacific Explorations Ltd.

Pierre Lebel, 604/689-5797, 604/687-4030 (FAX) or

Maryse Belanger, 604/689-5797, 604/687-4030 (FAX) or

Charlene Parisotto, 604/689-5797, 604/687-4030 (FAX)