Columbia Yukon - Fire Assays Return Stronger Cobalt Showings on ML 1506 - Alliger Lake.

VANCOUVER, British Columbia--(BUSINESS WIRE)--June 7, 1996--Drill core samples from drill hole No. 2 on ML 1506 in the Alliger Lake area have been re-assayed and some increases in metal values were reported. Cobalt, which accounts for approximately half of the gross value of the mineralization, showed increases of more than 10 percent.

The highest grade mineralization was at the base of the large sulphide intersection over a thickness of 2.78 meters (9.1 ft) where the weighted average grade was 0.67 percent Ni, 0.63 percent Cu and 0.124 percent Co (old IPC values were 0.64 percent Ni, 0.54 percent Cu and 0.102 percent Co were reported for the interval).

A step out drill hole 1506-7, 20 meters (66 feet) to the east of 1506-2, has intersected 9.75 meters (32 ft) of similar massive and disseminated sulphides in the same conductor. Assay results are awaited for this drill hole and drill hole 1506-6.

Metal prices quoted in the Northern Miner for this week are: Nickel US $3.97/lb, Copper US $1.17/lb and Cobalt US $26.00/lb. The gross value of the above section of massive sulphide mineralization is US $143.00/tonne. Modern hydrometallurgical processes for converting such sulphides to metals are now capable of recoveries of more than 95 percent of contained metals.

Assays for the first 5 holes have been received and are summarized below. The substantially higher cobalt values (above 0.1 percent Cobalt or 2.2 lbs per tonne) in the massive sulphides on ML 1506 indicate good potential for locating high cobalt values in deeper accumulations of sulphides beneath the massive sulphide zones tested to date. -0-

 DDH No.    From     To   Interval  Nickel   Copper   Cobalt
            (m)     (m)      (m)    percent  percent  percent
---------  ------  ------  -------  -------  -------  -------
 1506-1    209.23  209.68   0.45      0.44     0.55    0.099

 1506-2     33.5    40.00   6.50      0.44     0.47    0.08
Including   36.90   39.68   2.78      0.67     0.63    0.124
 1506-2     61.21   61.43   0.22      0.73     0.30    0.108
 1506-2     61.80   62.06   0.26      1.00     0.18    0.144

 1506-3     37.55   38.89   1.03      0.69     0.33    0.134
 1506-3     39.58   40.40   0.82      0.73     0.92    0.143
 1506-3     41.30   41.79   0.49      0.53     0.39    0.102
 1506-3     43.46   44.62   1.16      0.77     0.46    0.125

 1506-4    103.41  103.90   0.49      0.59     0.42    0.131

 1506-5     17.85   18.34   0.49      0.91     0.34    0.124
 1506-5     44.80   45.44   0.64      0.93     0.48    0.121
 1506-5     50.40   50.64   0.24      0.60     0.14    0.071

The new results confirm strong indications of mineralization in the layered troctolitic rocks on ML 1506. Columbia Yukon Resources Ltd. is planning to continue systematic exploration with further testings of the claims using deep search geophysical methods and a higher capacity drill rig.

Silverstone Resources Ltd. (SVT-VSE) has an option to earn a 50 percent interest in the claims with Columbia Yukon as the operator.

ON BEHALF OF THE BOARD OF DIRECTORS

Douglas L. Mason, Director -0-

NOTE TO EDITORS: 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, Director

604/683-3070, 604/683-2308 (Fax)