Correcting...Naneco Minerals Ltd. Commences its 1997 Diamond Drill Program at its Cochrane Mine Project, South Dakota.

CALGARY, Alberta--(BUSINESS WIRE)--March 26, 1997--Naneco Minerals Ltd. (Alberta Stock Exchange: NNE) 1997 diamond drill program has commenced with a core drilling program by Boart Longyear on the Cochrane Mine Project.

GOLD MINERALIZATION at the Cochrane Mine is found as FREE GOLD in intensely deformed chert-grunerite Iron-Formation very similar in style and form to the nearby world-famous Homestake Mine, which has produced over 38,000,000 ounces of Gold to date. The geologic setting at Cochrane has a number of very striking similarities with that at the Homestake Mine and is located within 17 miles along the same geologic trend.

In 1982, an independent report suggested the geologic potential at Cochrane was 6 million tons of "Homestake-type" orebody grading 0.25 ounces of Gold per ton (1,500,000 ounces of Gold). This was prior to any work done on the property by Noranda, Newmont, and NANECO MINERALS LTD.

Drilling so far, at Cochrane has:

1. Confirmed the presence of a potentially open-pitable Gold resource, with deeper high grade mineralization of a potentially Homestake-type deposit;

2. Discovered a mineralized zone with significant Gold values approximately 140 feet below anything previously drilled;

3. Confirmed that favorable Gold bearing host rocks are present to the west of the Cochrane shear zone which provides a new and unexplored area for future drilling;

4. Discovered Seven Gold Mineralized Zones within the iron formation;

5. Encountered VERY SIGNIFICANT GOLD MINERALIZATION in all 7 drill holes from the 1996 diamond drill program;

6. Extended known Gold Mineralization 200 plus feet to the South of the Main Pit Area;

7. Tested less than one-quarter of the mile long mineralized trend running north to south on the property controlled by NANECO MINERALS by drilling to a depth of under 1000 feet; and

8. Shown a geologic potential of 1,500,000 OUNCES OF GOLD exists with drill results indicating further potential mineralization in all directions within the property package as well as at depth which in the aggregate creates the potential for an elephant Gold deposit.

The nearby Homestake Mine has produced a significant portion of their 38 million ounce Gold Deposit between 2000 and 4000 feet. NANECO plans to diamond drill below the Cochrane ridge in order to reach greater depths and to eliminate up to 500 feet that would have to be drilled from surface.

NANECO has yet not tested the full width, east to west, of the mineralized trend. This will be tested during 1997. NANECO geologists anticipate this trend width could be as wide as one-half mile.

NANECO'S complete property portfolio contains 600,000 ounces of Gold Drill Proven Reserves with a Geologic Potential of about 4-4.5 million ounces of Gold. -0-

Note to Editors: The Alberta Stock Exchange has neither approved nor disapproved the information contained herein.

CONTACT: Naneco Minerals Ltd.

Archie Nesbitt/Raju Wani, 403/232-6833

www.naneco.com