Dunlap Enters into Definitive Agreement for Major Property Acquisition in Indonesia.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Oct. 2, 1996-- DUNLAP RESOURCES (VSE: DLR.) Dunlap Resources Ltd. (the "Company") announces that it has entered into a definitive agreement (the "Definitive Agreement") in respect of its major Indonesian property acquisition (the "Acquisition") previously announced on August 20, 1996.

The Definitive Agreement expands upon and supersedes a letter agreement dated August 19, 1996. The Definitive Agreement provides that the Company will acquire from Mutiara Resources Corporation Pte. Ltd. ("Mutiara"), a privately held Singapore corporation at arm's length to the Company, and seven British Virgin Islands holding companies which are beneficially owned by employees and business associates of Mutiara (collectively, the "Vendors") the following interests in advanced applications to acquire mineral rights in Indonesia:

1. a 15 percent interest (with an option to acquire an additional 18 percent interest) in a sixth generation contract of work ("COW") application for approximately 144,884 hectares located in the highly prospective Aceh Region of northwestern Sumatra, which interest is held pursuant to a memorandum of understanding ("MOU") between an affiliated company of Mutiara and a subsidiary of Barrick Gold Corporation ("Barrick");

2. a 95 percent interest in a seventh generation COW application for approximately 140,900 hectares located within the Kalimantan Magmatic Arc in southwestern Kalimantan;

3. a 70 percent interest in an application for a Kuasa Pertambangan mining authorization for approximately 32,960 hectares located in central Java, which interest is held pursuant to an MOU between an affiliated company of Mutiara and PT Aneka Tambang, an Indonesian state-owned mining company (which holds an option to acquire a further 10 percent interest in the application); and

4. a 10 percent interest in a sixth generation COW application for approximately 975,134 hectares on Flores Island, which interest is held pursuant to an MOU between an affiliated company of Mutiara and a subsidiary of Barrick, (collectively referred to as the "Mutiara Interest"). The Mutiara Interest are held through four Singapore holding companies and a British Virgin Island holding company, which will be transferred to the Company. The Acquisition is scheduled to close on October 24, 1996 or such later date as may be agreed to among the Company and the Vendors (the "Closing Date").

In consideration for the Mutiara Interest, the Company will issue 41,973,888 common shares to the Vendors on the Closing Date. The Company will also issue four additional common shares to the Vendors, up to a maximum of 21,428,280 additional common shares, for each common share which is issued by the Company through June 6, 1998 upon the exercise of outstanding warrants of the Company or under certain property acquisition agreements. As a result, the Vendors will collectively own approximately 80 percent of the outstanding common shares of the Company, on a fully diluted basis, on the Closing Date.

On the Closing Date, Bradford J. Cooke, a current director of the Company, will resign and Timothy H.T. Yap, the executive director of Mutiara, and Anton J. Bruinier, a director of Mutiara and the former President Director of PT Aneka Tambang, will be appointed as directors of the Company. Yap will also be appointed as Chairman of the Board of the Company at that time. Following the Closing Date the existing officers of the Company shall continue to serve in their present offices.

Mutiara is owned by the Yap family, a prominent family based in Jakarta, Indonesia which holds substantial business interests in forest products, mining, food processing, plantations, restaurant franchises, hotel and resort development, real estate development, shipping and the trading of a number of basic commodities.

The Acquisition is subject to a number of conditions, including: receipt of regulatory approval; receipt of shareholder approval; and satisfactory completion of due diligence by each of the Company and the Vendors.

Trading in the Company's shares was halted, at the Company's request, prior to the opening of trading on August 19, 1996 and will continue to be halted pending the Vancouver Stock Exchange accepting notice of the Acquisition.

Dunlap Resources Ltd. is a Canadian based exploration company with projects in Indonesia, Chile and Labrador.

On behalf of the Board of Directors of: DUNLAP RESOURCES LTD. Maureen J. Luck, -0-

Note to Editors: The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release.

CONTACT: Dunlap Resources Ltd.

Rose Moon, 604/608-1633

or

Barrington Communications Group

Jill Brand, 604/682-1700

800-663-0321