Columbia Yukon - 1996 Work Summary - Voisey's Bay.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Oct. 30, 1996-- Columbia Yukon (Alberta Stock Exchange: CYR.)--Columbia Yukon Resources Ltd. (the "Company") reports that the 1996 summer work program on the Voisey's Bay area properties, in Labrador, have been completed.

Airborne surveys were carried out in the Stag Horn Lake area and four drill targets were tested with six drill holes in the West Voisey's Bay areas near Cabot Lake. As well, the smaller of two targets was drilled on the Yaco claim (ML 904) under option from Yanks Peak Resources Ltd.

Conductor sources were identified in all of the drill holes. Drilling on ML 2723, under option to Consolidated Venturex Holdings Ltd., encountered elevated zinc values with one 1.0 metre intersection having a grade of 1.187 percent Zn. The largest massive sulphide body in the area was found by MPH Consulting in 1995 on ML 1886. The first drill hole encountered two zinc zones within the massive sulphide; the upper zone carried a grade of 2.1 percent Zn over 4.9 metres (16.17 feet), the lower zone had a grade of 1.85 percent Zn over 5.84 metres (19.27 feet). These intersections were associated with elevated but sub-economic copper and nickel values suggesting derivation from basic to ultra basic magmatic sources. Lead, silver and gold values were not significant.

The first drill hole completed on the Yaco claim encountered a 2.4 metre (7.9 feet) intersection with elevated but sub-economic nickel, copper and cobalt values associated with geochemically anomalous platinum, palladium and silver values. This mineralization was hosted by metasediments with stringer and disseminated sulphides. A second larger anomaly just to the east was not tested owing to the onset of winter conditions.

The 1996 work programs carried out by the Company involved direct field expenditures in Labrador amounting to approximately $2,200,000. This expenditure includes VBE 1 drilling and a successful drill program carried out in April 1996 on ML 1506 in the Alliger Lake area south of Okak Bay. ML 1506 is under option to Silverstone Resources Ltd. (SVT-VSE). Massive sulphide horizons intersected returned potentially ore grade nickel-copper-cobalt assays as reported earlier this year (0.67 percent Ni, 0.63 percent Cu, 0.124 percent Co).

The ML 1506 drill results suggest potential for deeper mineralization and further work is being planned by the Company for 1997. This will include deep probing geophysical surveys and follow-up drilling to depths in excess of 1000 metres supported by down-hole electromagnetic surveys.

The 1996 exploration expenditures also include costs of the deep drilling reported in earlier news releases on the VBE 1 claim under option from International CanAlaska Resources Ltd. The drill hole was terminated at 870 metres (2854 feet) due to the loss and non recovery of a 30 metre drill stem before the targeted depth of 1000 metres (3280 feet) had been reached. The hole has been capped to allow re-entry into the hole with a larger drill rig.

The geological information from the drill hole confirmed that an anorthosite/norite complex underlies the surface expressions of nickel-copper mineralization. Within the last 100 metres of drill core, disseminated pyrrhotite and chalcopyrite were reported to be increasing in concentration. Also olivine crystals were identified within the anorthosite/norite rocks and locally the core was comprised of magnetite and plagioclase suggesting development of cummulates. These are the rock types that would be consistent with the geological model for the Eastern Deeps type of mineralization being probed to depths of more than 900 metres (3000 feet) by Diamond Fields/Inco on the adjoining claim block.

1996 work on the VBE 2 claim block, tied on to the Diamond Fields/Inco claim block at a point due south of the Voisey's Bay discovery area, identified an important new gold showing. The gold mineralization, with grades up to 18.29 g/t (0.54 oz/st) gold, is associated with strong airborne and ground electromagnetic anomalies that extend more than 500 metres (1650 feet) in length.

The Company is well positioned to continue an aggressive 1997 exploration programme in Labrador. The 1996 work has completed the screening process of more than 1 million acres of claims held in Labrador by the Company. The focus of future work being planned will include completing work on the larger Yaco (ML 904) drill target and the Yanks Peak Resources Ltd. drill targets west of Voisey's Bay; following up the later stage work on VBE 1 with deep drilling for Eastern Deeps type mineralization; drilling of the VBE 2 gold discovery; and testing the potential of deeper mineralization on the ML 1506 in the Alliger Lake area south of Okak Bay.

ON BEHALF OF THE BOARD OF DIRECTORS

Douglas L. Mason, Director

-0-

The Alberta Stock Exchange nor any other regulatory body has reviewed this news release and therefore do not accept responsibility for the adequacy or accuracy of this release.

CONTACT: Columbia Yukon Resources Ltd.

Douglas L. Mason, 604/683-3070

604/683-2308 (FAX)

INTERNET:

http://www.columbia-yukon.com/columbia-yukon/

E-MAIL: [e-mail]