Cypango Ventures Company Update.

VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--Oct. 25, 1996-- CYPANGO VENTURES LTD (VSE:CAV.) As an update on its affairs, the Company wishes to announce the following:

1. Yamba Lake (Joint Ventured with Mill City and Tanqueray)

During the summer exploration program of 1996, bulk heavy mineral till sampling and reexamination of airborne magnetics and conductivity data on the Yamba Lake claim block (Joint Venture Mill City/Tanqueray) resulted in the identification of a number of indicator mineral dispersion trains. Examination of surface abrasion of the indicator minerals recovered suggest a proximal source. A group of first priority kimberlite drill targets have been selected based on this data. The Yamba Lake property is located directly north of BHP/Dia Met in the Lac de Gras area of the Northwest Territories. The winter drill program will start in early November, 1996.

2. AL Claim Blocks (located East of Mountain Province's AK Claims)

Regional and follow-up bulk heavy mineral till sampling has recovered a large number of indicator mineral anomalies, many of which form subtle kimberlite indicator mineral dispersion trains. Detailed development of these trains is ongoing.

3. Afridi Lake

Bulk heavy mineral till sample processing continues property wise. The majority of previously defined anomalies have been replicated and further developed. A surficial geology study of the entire property is currently ongoing.

4. Private Placement announcement

The Company wishes to announce a non-brokered private placement of up to 1,500,000 Units at a price of $1.01 per unit. Each unit will consist of one non-transferable common share and one share purchase warrant. Each non-transferable share purchase warrant will entitle the holder to purchase one additional common share in the capital of the Company for a period of two years from closing for the exercise price of $1.01 during the first year and $1.17 during the second year. The Company will pay a finders fee of 105,000 units (or 7 percent of the offering). The proceeds of the offering will be released to the Company on closing.

5. Special Warrant Private Placement amendment

The Company announces the amendment of its brokered private placement of 2,000,000 Special Warrants at $1.20 per special warrant disclosed by way of news release dated September 27, 1996. In its stead the Company retained Canaccord Capital Corp. and Yorkton Securities Inc. (as to 50 percent each) as agents for the private placement of up to 1,000,000 flow-through Special Warrants at $1.01 per Special Warrant. Each Special Warrant will be exchangeable (for no additional consideration) into flow-through common share and one non- transferable flow-through share purchase warrant. Each non- transferable share purchase warrant will entitle the holder to purchase one additional common share in the capital of the Company for a period of two years from closing for the exercise price of $1.01 if exercised during the first year, and $1.17 if exercised during the second year. The proceeds of the offering will be released to the Company on closing.

The Company shall issue to the agents up to 70,000 special warrants (or 7 percent of the offering) as a commission. Each of the special warrants will be exchangeable for a share and a warrant and the warrant shall be exercisable at a price of $1.01 if exercised during the first year, and $1.17 if exercised during the second year. The Company will undertake to use its best efforts to qualify the special warrants, by way of an Exchange Offering Prospectus within 120 days. The proceeds of the private placement will be used to finance the exploration and drilling of the new primary targets which have been located on the Yamba Lake property and for general working capital.

6. Public Relations 

The Company finally announces that it has retained Jason Dussault, Shane Lowry and Andrew Phillips in an Investor Relations role effective immediately. Each will be paid $1,5000.00 per month and bring years of experience in their field of expertise.

CONTACT: Cypango Ventures Ltd.

William D. Friesen, 604/688-6306

604/688-9519 (FAX)

1-800-545-7214