Colossal announces initial melting of cobalt/copper slag at the Kabwe plant in Zambia.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Oct. 30, 1996-- Colossal Resources Corp. (NASDAQ: CLPZF) (VSE: CLP) reported the first melting of slag from the ZCCM Nkana Slag Dump (NSD) at the recently constructed Qasim Mining Enterprises Ltd. (QMEL) Plant at Kabwe in Zambia.

Colossal developed the plant through a 60 percent interest in Qasim Mining Enterprises Ltd. (QMEL), a private Zambian resource company, which entered into a sales agreement with ZCCM and has rights to 8.6 million tonnes of slag assaying on average 0.70 to 0.82 percent cobalt.

Last week, the first of two 15-tonne electric-arc furnaces was hot-commissioned and successfully melted the first charge of slag, and all power and water reticulation systems were operational. The second 15-tonne EAF installation is nearly complete and hot-commissioning is set for completion by the end of September 1996.

According to Dil Gujral, president and chief executive officer of Colossal Resources Corp.: "This achievement marks the culmination of a tremendous 18-month effort by our management, advisors, employees and our partners in QMEL. Working together, we have overcome many difficulties and delays. I would like to thank our shareholders for their patience and support, as we have now taken Colossal beyond the development stage. I believe we are now well on our way to becoming one of the major players in the cobalt market."

Colossal Resources Corp. continues to search for interesting sources of residues and slags for profitable venture opportunities in non-ferrous and precious metals and is currently assessing other projects in South Africa and in other parts of the world. -0-

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CONTACT: Colossal Resources Corp., Vancouver

Dil Gujral, 604/688-0044 or 800/298-0244;

604/684-2439 (fax)

http://www.stockgroup.com/CLP.html

or

Investor Relations:

Darrel Hackman, 303/306-6351

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