Drill Program (20,000 ft.) to Begin in January on Southwestern Nevada Gold/Silver Properties.

CALGARY, ALBERTA--(BUSINESS WIRE)--Jan. 17, 1997--Golconda Resources (Alberta Stock Exchange GA.) Discovery of two blind mineralized zones (no gold/silver values at surface) by Golconda in March 1996 on the South Monitor Property lead to an aggressive exploration program which resulted in the discovery of three areas with strong alteration and anomalous gold/silver values. The areas were subsequently staked by Golconda and the company entered into a joint venture on a fourth property.

SOUTH MONITOR PROPERTY - 108 Claims - 2,160 Acres - 60 percent GA A total of 12,000 feet of drilling is planned for this phase.

Central Zone - Drilling by Golconda in March 1996 discovered a large, blind gold zone. Gold values start at 60 ft. depth and have now been followed down to 650 feet, indicating a very strong hydrothermal system. Actual extent is in excess of 1000 feet x 1000 feet. So far gold values in the seven holes drilled are in the 0.010 Au/t to 0.020 oz. Au/t range, with the silver values fifteen times as high. Deep drilling is planned to test for a bonaza type high grade core at the contact with the underlying Paleozoic limestone. Potential to delineate 1 million ounces plus.

South Zone - Previous drilling outlined about 250,000 oz. of gold. Golconda's drilling in 1996 showed the system is open to the south and at depth. Potential to increase reserves to 500,000 ounces plus.

North Zone - Two holes drilled about 3,500 feet to the north of the Central Zone encountered low gold/silver mineralization in clay altered rock below 300 ft. depth. Subsequently, a hole drilled 200 feet to the east encountered an oxidized-silicified zone from 215ft. to 380 ft. with a grade of 0.014 oz. Au equivalent and seems to be the edge of another hydrothermal gold system, which will be followed up by drilling.

MONITOR HILLS PROPERTY - 196 Claims - 3920 Acres - 100 percent GA

Six square miles of alteration at the intersection of two structures with known gold/silver mineralization along trend. Excellent potential for multi-million ounce bulk tonnage deposit. Limestone sequence at shallow depth under altered volcanic has potential for high grade ore. Eight holes to a depth of 300 feet each, are planned (2400 feet).

THUNDER MOUNTAIN PROPERTY - 38 Claims - 76 Acres - 100 percent GA

Anomalous gold/silver values in surface samples. Situated on trend between South Monitor and Midway Project. Four holes to a depth of 400 feet each are planned ( 1600 feet).

CNR CLAIMS - 24 Claims - 840 Acres - 50 percent GA

Extensive surface sampling, outlined three large areas of consistent gold/silver mineralization leaking through an unmineralized welded tuff. Drilling showed increasing values to the southeast. Four holes to a depth of 400 feet each are planned (1600 feet).

CLIFFORD MINE PROPERTY 42 Claims - 840 Acres - 50 percent GA

Golconda and its joint venture partner Gold Valley Resources Inc. drilled in 1996 to test the potential of deeper seated mineralized zones related to the Clifford Mine. Values increase to the south. Six holes to a depth of 400 feet each are planned (2400 feet).

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CONTACT: Golconda Resources Ltd.

Guenter J. Liedtke, 403/232-6828

403/232-8650 (FAX)

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