Consolidated Magna: Koala Project Update.

VANCOUVER, British Columbia--(BUSINESS WIRE)--July 8, 1998-- Cons. Magna (VSE:CMV.) Consolidated Magna Ventures Ltd. reports that eight holes, for a total of 1654.9 metres, have now been completed at the Koala Project in Chihuahua, Mexico. The Phase I diamond drilling program has been targeting replacement-style lead-zinc-silver-copper mineralization similar to the nearby Naica and Santa Eulalia deposits.

The drill targets were generated by a detailed geophysical survey including Real Section deep penetrating Induced Polarization (IP) which produced an extensive chargeability anomaly stretching over 3.5 kilometres. Coincident with the geophysical anomaly was a 500m wide zone of alteration that is continuous over 3 kilometres of strike length and associated with a major regional fault. Numerous showings consisting of shallow pits and outcrops of semi-continuous dykes and shears occur within the alteration zone. Surface sampling of these showings confirmed the presence of good grade base metal mineralization in selected grab samples. Assay results include the following: -0-

Selected Grab Samples from Surface Showings:

Copper             Lead           Zinc           Silver

1.51 percent     50 ppm          220 ppm         4.8 ppm
2.67 percent     3520 ppm        8220 ppm        9.8 ppm
3.92 percent     1260 ppm        2610 ppm        46.3 ppm
115 ppm          1.51 percent    5460 ppm        4.4 ppm
178 ppm          8530 ppm        5.42 percent    9.6 ppm
0.08 percent     2.63 percent    16.7 percent    32 ppm
0.05 percent     6.36 percent    4.7 percent     96 ppm

The first two holes at Koala were drilled to vertical depths of almost 400m in order to test the IP chargeability anomalies below the level of oxidation (200m). The sulphides intersected in these holes consisted predominantly of pyrite stringers with uneconomic values of base metals. Six shallower holes were then drilled in order to gain a better understanding of the mineralizing system as it relates to the pits and surface showings. All of these holes returned sections of highly anomalous values of base metals but no economically significant grades, indicating an erratic nature to the mineralization this high within the system.

Based on the results to date, it appears that base metal mineralization at Koala is primarily associated with intermediate sills, iron and silica rich lenses or pods, and barite plus/minus calcite veins. The sills appear to be somewhat continuous along strike (hundreds of metres) and are moderately dipping to the north, towards the main fault. They are highly weathered and are recessive in the field, making them difficult to identify. The lenses and veins tend to occur within zones which are tens of metres wide and hundreds of metres long, paralleling the main fault but, individually, are very discontinuous and appear to be related to open space fillings within the folded limestones. Several of the surface showings contain intrusive rocks and lenses plus/minus vein material, suggesting that the best mineralization may be related to the intersection of these features.

The sill-related type of mineralization appears to be similar to the manto style observed at the Santa Eulalia West Camp deposits, whereas the siliceous lenses observed at Koala look like the chimney-style mineralization at Naica. At Koala, however, mineralization observed to date is erratic in nature, suggesting that we are higher in the system than both Santa Eulalia and Naica. Magna geologists have also mapped in several crosscutting faults that are believed to be important in localizing mineralization.

Alteration, brecciation and veining are extensive at Koala and management still believes that a significant hydrothermal system exists at depth here. The Company is continuing with surface mapping and sampling, with particular emphasis on the sills, in order to know how to correlate these zones with the deeper geophysical data. Further recommendations for exploration will be made following a thorough compilation of the data.

Consolidated Magna Ventures Ltd. is a growth-oriented mineral exploration company listed on the Vancouver Stock Exchange (Symbol - CMV-VSE).

ON BEHALF OF THE BOARD OF DIRECTORS CONSOLIDATED MAGNA VENTURES LTD.

Bradley T. Aelicks, President

The Vancouver Stock Exchange neither approves nor disapproves the contents of this news release which was prepared solely at the discretion of management.

    CONTACT:  Consolidated Magna Ventures Ltd.
               Jason Cubitt, 604/ 801-6664