Expatriate Resources: Corporate Update.

VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--May 26, 1998-- EXPATRIATE RES.(VSE:EXR.) Alan R. Archer, Chief Financial Officer of Expatriate Resources Ltd. ("Expatriate") is pleased to announce that Dr. Harlan Meade has been appointed President and Chief Executive Officer responsible for corporate development of the company and enhancing shareholder value. Former President, Mr. James Stephen will remain as a director of the company. Dr. Meade was previously with Westmin Resources Limited (recently taken over by Boliden Limited). As Vice President of Exploration for Westmin, he was intimately involved with the Wolverine discovery in the Finlayson Lake District of southeast Yukon and was responsible for Westmin's international exploration activities. He has been a director of Expatriate since March 1996.

Expatriate is also pleased to announce that it has entered into two letters of intent with Boliden Westmin Limited (formerly Westmin Resources Limited). Under the first, Expatriate will acquire Boliden Westmin's interest in certain hydrometallurgical technology, in consideration for 1.7 million Expatriate common shares. Pursuant to the second letter of intent, Expatriate will acquire certain mineral properties and assets in the Finlayson Lake District, including Boliden Westmin's 60 percent interest in the Wolverine Deposit, in consideration for 5.0 million Expatriate common shares. Both acquisitions are subject to regulatory and other required approvals, including Expatriate shareholder approval.

Metal Leach Technology Acquisition

The Finlayson Lake Assets, including the Wolverine Deposit, contain unusually high levels of selenium in all the sulphide minerals. Selenium is a penalty in copper and zinc concentrates at smelters and would make the concentrates from Wolverine difficult to market. Expatriate would, as part of its exploration activity and efforts to develop the Wolverine Deposit, explore various methods to overcome the difficulties caused by the high levels of selenium in the mineralization.

The hydrometallurgical technology to be acquired from Boliden Westmin includes four recently granted US Patents and related expertise owned by two private companies in which Boliden Westmin owns a 50 percent interest (and has the right to increase its interest to 90 percent). While at Westmin, Dr. Meade managed hydrometallurgical research conducted by Dr. Robert O'Brien at the University of Victoria under the supervision of Dr. Ernie Peters of the University of British Columbia. The remaining interest in the private companies is owned by Dr. O'Brien.

Two of the patents may provide a new way of leaching base metal concentrates by producing sulphates from which cathode copper and zinc can be electroplated. The other two patents produce elemental sulphur from hydrogen sulphide gas and sulphuric acid from sulphur dioxide gas. The latter two processes are directly linked to the leach technology in the recovery and regeneration of leach reagents. They also may have important application in the chemical, pulp and paper, and fertilizer industries.

The metal leach technology utilizes a mixture of concentrated nitric and sulphuric acid to dissolve the sulphide minerals. Testing at bench scale indicates that leaching can be done efficiently with high copper and zinc recoveries. The process works under atmospheric pressure and temperatures in the 150 degrees Celsius range. Precious metals would be recovered from the residues of leaching of the Wolverine concentrate by cyanidization methods. Expatriate will evaluate alternatives for funding pilot stage work and the methods for removal and recovery of selenium from the leach solutions. This leach technology provides an excellent opportunity for overcoming the selenium problem at the Wolverine Deposit and maximizing the value of its high grade mineralization.

Finlayson Lake Assets Acquisition

Boliden Westmin's interests in the Finlayson Lake District include approximately 1760 claims comprising the Wolverine Joint Venture between Boliden Westmin and Atna Resources Ltd., 676 wholly-owned Boliden Westmin claims and 38 claims subject to the TY Option and Joint Venture Agreement ("TY JV") between Boliden Westmin and Pacific Bay Minerals Ltd., together called the "Finlayson Lake Assets". With Expatriate's existing 5420 claims in the Finlayson Lake District, Expatriate will have the largest landholding in this important emerging volcanogenic massive sulphide district.

Expatriate will issue Boliden Westmin 5,000,000 common shares of Expatriate to acquire the Finlayson Assets. With the issuance of the shares Boliden Westmin shall have the right to nominate two directors to the Board of Expatriate. In addition Expatriate shall give Boliden Westmin a right of first opportunity to bid on any interest in a significant base metal project that Expatriate may wish to sell or joint venture.

Boliden Westmin has a 60 percent interest in the Wolverine Joint Venture and a 50 percent interest in TY JV (which is not part of Wolverine Joint Venture). Boliden Westmin may increase its interest in TY JV to 60 percent by making additional expenditures of $150,000 during 1998. The assignment to Expatriate of Boliden Westmin's interest in TY JV is subject to a right of first refusal by Pacific Bay.

The Wolverine Joint Venture property hosts the Wolverine and Lynx Zones which have a resource estimated at 6,237,000 tonnes grading 12.66 percent zinc, 1.33 percent copper, 1.55 percent lead, 370.9 g/t silver and 1.76 g/t gold. In addition, narrow high grade intersections of massive sulphides were discovered late in 1997 in a new area called the Sable Zone, 1.6 km southeast of the Wolverine Deposit. The Sable Zone is near Expatriate's Puck claims that are under option to the Wolverine Joint Venture. Numerous other base and precious metal targets are indicated on the property.

Preliminary exploration on the TY JV claims has defined a thick pyritic felsic unit with strongly anomalous base metal geochemistry. Initial drilling failed to intersect mineralization other than pyrite, however additional drill targets have been determined by subsequent fieldwork.

Updated Capital Structure and Future Plans

On completion of the two acquisitions, Boliden Westmin's interest in Expatriate will increase from 1,450,000 common shares to 8,150,000 common shares, representing 53.5 percent of Expatriate's common shares (50.2 percent on a fully diluted basis). In consideration for the issuing of the shares, Boliden Westmin will enter into a standstill agreement with Expatriate whereby it will refrain from acquiring any additional shares of Expatriate for a period of three years, except that during the standstill period it will have the right to participate in any Expatriate financings to the extent required to preserve a minimum 35 percent common share interest in Expatriate on a non-diluted basis. Expatriate shall have a first right of purchase of any shares that Boliden Westmin should wish to sell or otherwise dispose of.

The association with Boliden Westmin provides Expatriate with a strong financial partner as it goes forward in its effort to develop the Finlayson Lake Assets and the hydrometallurgical technology. In addition to these new acquisitions Expatriate will continue to explore its current landholdings and has begun searching for international opportunities, primarily in South America and Mexico. Joint venture discussions with several groups in Chile and Mexico are progressing well. EXPATRIATE RESOURCES LTD.

Per: ALAN R. ARCHER, Chief Financial Officer -0-

The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the accuracy of this news release.

CONTACT: Expatriate Resources Ltd.

Alan R. Archer, 604/688-2568