Copperstone and Canmex to merge, acquire assets from Island-Arc.

VANCOUVER, B.C.--(BUSINESS WIRE)--May 16, 1996--CANMEX MINERALS(VSE: CMX ) COPPERSTONE RESOURCES CORPORATION ("Copperstone") and CANMEX MINERALS CORPORATION ("Canmex") announce that they have entered into an agreement to amalgamate the two companies. Both companies have property interests in the Boleo Copper-Cobalt District of Baja California Sur, Mexico. Island-Arc Resources Corporation ("Island-Arc") has agreed to exchange its property interests in the Boleo district, which it holds jointly with Copperstone, for shares of the amalgamated company.

Under the amalgamation agreement, Copperstone shareholders will receive 0.8 shares of the amalgamated company for each Copperstone share, and Canmex shareholders will receive 1.25 shares of the amalgamated company for each Canmex share. Island-Arc has agreed to exchange its Boleo interests for 5.3 million shares of the amalgamated company.

An initial drill program of 14 holes by Copperstone and Island-Arc on their Lucifer concession in the northwest part of the Boleo district encountered thick intersections with favorable grades of copper and cobalt over a zone extending for 1,000 meters by 850 meters. Three holes contained mineralized sections more than 30 meters thick. The zone encountered in hole 95-14 assayed 1.01 percent copper and 0.039 percent cobalt over 30.7 meters (101 feet). Canmex holds concessions adjacent to the Copperstone concessions. Geophysical work now underway and geological interpretations indicate that the mineralized formations extend onto the Canmex ground. The ground held by the combined companies in this area has the potential to host a substantial stand-alone open pit copper-cobalt ore body.

Copperstone also holds the Nuevo San Luciano concession, which contains reserves that could be exploited by underground mining.

Both companies hold substantial amounts of additional highly prospective ground in the Boleo area contiguous with ground held by International Curator Resources Ltd. Curator has identified a geological resource at Boleo of up to 537 million tonnes grading 0.73 percent copper and 0.054 percent cobalt (equivalent to 1.52 percent copper), based on 466 drill holes to date.

Canmex also holds a large gold prospect in the State of Sinaloa, Mexico, where work is progressing.

The board of directors of the combined company will consist of:

J. Cameron Bailey Lawrence Barr Kenneth M. Dawson Lukas H. Lundin Murray McClaren Kim Phillips Lawrence Roulston

Island-Arc has agreed to enter into a voting trust with respect to the shares they will hold in the merged company and to agree to certain restrictions on the sale of those shares.

The amalgamation is subject to approvals from the shareholders of both companies, and to regulatory approval. The companies will use best efforts to conclude the merger by August 31, 1996.

The companies plan to continue work on the properties during the approval period, including further drilling. A substantial drill program will commence immediately upon completion of the amalgamation.

Note - There is a map available by contacting the company at the number below.

CONTACT: Canmex Minerals Corporation

Lawrence Roulston, 604/689-7842