East Indies Mining Corporation Reports Progress on Indonesian Projects.

TORONTO--(BUSINESS WIRE)--Feb. 10, 1997--East Indies Mining Corporation ("East Indies") (EIMC - CDN) reported progress today on the East Salopa, Balairiam, Tumbang Hiram East and Tumbang Hiran West properties in Indonesia based on a two week inspection by the company's President, Will Felderhof.

EAST SALOPA

The 23,960 hectare East Salopa property is located within the main West Java mineralized belt which hosts the famous Gunung Ponkor bonanza vein mine.

Two priority epithermal target areas have been identified at the Melawong and Pondok Watu Prospects within the 4 km wide Marotiga diatreme complex.

The Melawong Prospect encompasses a number of parallel ridges up to 2km in length which are pervasively altered (silicified and argillized) and quartz veined. Assays of float consisting of quartz stockwork breccia from these ridges include samples assaying 0.40, 0.52, 0.52 and 1.71 g/t Au. These results are very encouraging due to the highly leached character of the upper portions of these ridges. A trenching and sampling program is underway to confirm the extent of the mineralized systems and define drill targets. It is anticipated that diamond drilling could commence in April.

The Pondok Watu Prospect consists of a 1 km by 1.5 km area of silification and argilization. Stockwork quartz veining is common in float in streams draining the area, two samples of which assayed 1.21 and 1.44 g/t Au. Detailed geological mapping and sampling has commenced in the area which will be followed by a trenching program. Ongoing regional geological mapping and sampling has defined additional prospective targets within the East Salopa Property. Assay results are pending from samples collected from these additional areas.

BALAIRIAM

The 28,830 hectare Balairiam Property is located within Central Kalimantan at the southwestern end of the main northeast trending Trans Borneo Gold Belt hosting the Busang and Kelian gold mineralized diatremes. The property is subject to a farm-in agreement with Celtic Minerals Ltd. ("Celtic") and Jilbey Exploration Ltd. ("Jilbey").

Airphoto and satellite radar imagery lineament interpretation has identified two, 4 and 5 km diameter circular features within the property. These circular features lie at the intersection of an interpreted northwest trending transfer structure and the southwest trending Trans Borneo Gold Belt. The northeastern circular feature appears to be younger and parasitic on the margin of the southwestern feature. Geological reconnaissance on the northeastern feature has identified silicified tuffs and sediments surrounded by older granitic rocks. This is interpreted to represent a maar diatreme. Quartz vein stockworking was observed within the sediments at three separate locations. Assay results of grab samples are pending.

Airborne magnetic, radiometric and DTM (Digital Terrain Modelling) surveys have been completed and data processing is presently underway to further define the target areas.

Pursuant to the 7th generation Contract of Work Agreement in Principal, a SIPP (preliminary exploration license) has been granted by the Indonesian Mines Department to East Indies and its Indonesian partner PT Aurum Framindos. Planning is now in progress for mobilization of a field crew to commence an exploration program in late February. The first phase of this program will include geological mapping, sampling and stream sediment geochemistry.

TUMBANG HIRAM EAST

The 47,390 hectare Tumbang Hiram East Property is also located in the Trans Kalimantan Gold Belt (West Kalimantan) and is subject to a farm-in agreement with Olympic Resources Ltd. ("Olympic") and Indostar Gold Corp. ("Indostar").

The property is favourably situated in the uplands shedding alluvial material to rivers immediately north of the property boundary, which are the sites of alluvia gold workings. Management believes the alluvial gold is derived from epithermal gold deposits which may occur within the property.

Airborne magnetic, radiometric and DTM surveys have been completed and data processing is presently underway to further define the target areas. Lineament interpretation of satellite radar imagery is being carried out in the Perth, Australia office of Crowe Schaffalitzky & Associates and should be completed by the end of February.

Pursuant to the 7th generation Contract of Work Agreement in Principal, a SIPP (preliminary exploration license) has been granted by the Indonesian Mines department to East Indies and its Indonesian partner PT Anjarsamba Kencana. Planning is now in progress for mobilization of a field crew to commence an exploration program in late February. The first phase of this program will include geological mapping, sampling and stream sediment geochemistry.

TUMBANG HIRAM WEST

The 16,640 hectare Tumbang Hiram West Property is contiguous to the Tumbang Hiram East Property, and is subject to a farm-in agreement with Celtic and Jilbey.

Airborne magnetic, radiometric and DTM surveys have been completed and data processing is presently underway to further define the target areas. Lineament interpretation of satellite radar imagery is being carried out in the Perth, Australia office of Crowe Schaffalitzky & Associates and should be completed by the end of February.

CONTACT: Mr. G.W. (Will) Felderhof, President at 902/755-3245