Cypango Ventures - exploration update.

VANCOUVER, British Columbia--(BUSINESS WIRE)--May 22, 1997-- Cypango Ventures Ltd. (VSE: CAV) -- Cypango Ventures Ltd. is pleased to report the results of the caustic dissolution evaluation of a series of sample batches taken from the T-10 kimberlite pipe, discovered recently in the central portion of the Yamba Lake property in the Northwest Territories.

The Yamba Lake property is situated 320 km northeast of Yellowknife and adjoins the property upon which BHP/Dia Met's advanced Koala project is located.

From this sample of 83.6 kg of kimberlite, a total of six (6) macrodiamonds (greater than 0.5 mm in the longest dimension) and sixty-two (62) microdiamonds (smaller than 0.5 mm in the longest dimension) were recovered.

The sample was processed in ten batches deemed to be representative of the multiple phases of the kimberlite pipe. These batches were taken at various intervals from core extracted from a single hole which was drilled at an angle across the pipe. The caustic dissolution method of evaluation immerses the kimberlite core into highly alkaline sodium hydroxide at very high temperature in order to dissolve the kimberlite. Diamonds survive this process of dissolution as a result of their low susceptibility to acidic or basic attack. After the kimberlite is dissolved, any diamonds that were contained therein are recovered from the remaining few grams of residue. Sample batches each contain a quality-control synthetic spike to verify recovery efficiency and the lack of any process- induced damage to natural diamonds in the sample. These diamonds are hand sorted and measured in a secure diamond sorting laboratory. This process is capable of extracting even the smallest of diamonds (greater than 125 microns in length).

The T-10 kimberlite pipe appears to be a small diatreme and consists of at least four (4) separate phases, each one representing a different intrusive event. From a 5 kg sample that was representative of one phase of the pipe, 3 macrodiamonds and 36 microdiamonds were extracted. This represents more than half of the diamonds extracted from the 83.6 kilogram sample and provides evidence of intrusions in the area that have well sampled the diamond stability field. As a result of the many phases throughout a relatively small diatreme, it is considered that the T-10 kimberlite pipe has a high probability of being a satellite pipe to a larger pipe in the vicinity. Sampling and surveying to establish further drill targets in the immediate vicinity of the T-10 pipe is ongoing.

Cypango is presently drilling a series of four (4) targets referred to as the "Gooseneck" targets. These targets lie adjacent to a peninsula that extends west from an island located in a lake in the central portion of the property. The targets are defined by a kimberlitic pyrope garnet, chrome spinel, and olivine-rich indicator mineral dispersion train that terminates beneath the lake. Microprobe analysis of indicator minerals from this train show that the grains originated from kimberlites that have sampled the diamond stability field and broadly confirm favourable conditions for the presence of diamonds. The targets appear as a series of well-defined magnetic lows on the ground magnetic survey and the profiles appear to be consistent with those of kimberlite pipes that have been discovered in the area.

Cypango is also continuing detailed indicator mineral sampling and geophysical surveying over targets at the terminus of the "T-49" and "T-60" trains in the west central and southwest portions of the property and is expected to define further targets for drilling shortly.

Cypango, through a joint venture agreement, has the right to earn a 51 percent interest in the Yamba Lake property from Mill City Gold Mining Corp. and Tanqueray Resources Ltd. by incurring $5,000,000 in exploration expenditures on the property and the issuance of 300,000 shares by October 31, 1999. Cypango's interest may be increased to 70 percent by completing a Feasibility Study on the property by December 31, 2001.

Regional programs continue on the balance of Cypango's 3.4 million acres on the slave craton in the Northwest Territories. These programs are intended to further develop a series of kimberlite indicator mineral dispersion trains into target areas for the purpose of drill-target selection. -0-

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CONTACT: Cypango Ventures Ltd.

William D. Friesen, 604/688-6306

604/688-9519 (fax)

1-800-545-7214