Exploration Sulliden Inc. - New Discovery of Copper-Gold Plus or Minus Molybdenum Porphyry-Style Mineralization in Peru.

MONTREAL--(BUSINESS WIRE)--May 13, 1997-- EXPLORATION SULLIDEN(ME SUE.) Exploration Sulliden Inc. (SUE) is pleased to announce the discovery of copper-gold plus or Minus molybdenum porphyry-style mineralization on the Cementerio zone of the Las Huaquillas property located in the Cajamarca Department in northern Peru. (Sulliden has exercized its right in order to earn a 100 percent interest in this property.) This important discovery is the result of an exploration program carried out from January to April, 1997. Costing approximately $US 1 million, this program consisted of line cutting (30.4 km), ground geophysical surveys (induced polarization and magnetics), soil sampling, reconnaissance mapping, trenching and eight diamond drill holes (1 360 m). The principal objective of this exploration program was to confirm the results obtained in 1992 by Cooperacion Minera Peruano Allemana (CMPA) on the Los Socavones zone, characterized by epithermal mineralization and having reserves of 2.6 M metric tonnes grading 2.69 g/t Au, 27.0 g/t Au, 1.09 percent Zn, 0.34 percent Pb and 0.18 percent Cu. For logistical reasons, exploration started on the Cementerio zone which was identified as having a widespread argillic alteration zone at surface.

At Cementerio, drill holes LH97-01,-02 and -04 intersected highly-altered porphyritic andesites and volcaniclastic rocks. From surface to depth, each of the holes intersected the following typical alteration sequence : -- a thin oxidized zone (1-15 m), -- approximately 70 metres of avanced argillic alteration containing disseminated pyrite, chalcopyrite and molybdenite, -- 50 to 90 metres of leached and silicified hornfels with hydrothermal magnetite patches and with up to 10 percent pyrite and 2 percent chalcopyrite and trace amounts of molybdenite, and -- propylitic alteration: strong near hornfels and decreasing toward the end of the hole; characterized essentially by epidote patches and calcite veinlets.

The most significant results come from drill hole LH97-04 that was targeted at an induced polarization anomaly located on the edge of a strongly magnetic zone. This drill hole intersected 99.5 metres grading 0.47 percent Cu, 0.11 g/t Au and 4.5 g/t Ag, starting at 55.5 metres down hole to 155 metres, i.e., the end of the hole. Drill core from this hole and holes LH97-01 and -02 was examined recently by personnel from Sulliden and Kilborn Engineering Pacific Limited. This independent engineering firm was contracted to carry out this exploration program. Intervals with the best copper grades correspond to the richest zones of visible chalcopyrite.

Summary of Best Intersections from Drill Holes on the
Cementerio Zone

Hole    From (in To (en  Length (in   Cu     Au     Au    Mo
         metres) metres)  metres)  (p.cent) (g/t) (g/t)(p.cent)
_______ _________ _______ ______ __________ ______ ____ _______

LH97-04       0   155.0      155      0.35    0.08  3.9       -
including  55.5   155.0     99.5      0.47    0.11  4.5       -
including  73.5    87.0     13.5      0.61    0.14  4.4    0.02
LH97-02    31.5   108.3     76.8      0.07    0.03  2.0       -
LH97-01    15.4   161.2    145.8      0.08    0.06  1.8       -

Drilling results on Cementerio indicate a zonation of metals and alteration which is typical of large porphyry systems. This zonation indicates that the central portion of the system is located southwest of the drill holes in a sector with several strong induced polarization anomalies and a soil geochemical anomaly measuring 800 metres by 300 metres which have not yet been drill tested.

Regarding the Los Socavones zone, it consists of epithermal, gold and base metal mineralization hosted in sericitized and/or locally argillized volcaniclastic rocks. Work done on this zone clearly shows that the mineralized structure is not closed, as interpreted by CMPA. In fact, it can be followed for more than 2.1 kilometres by trenching, geophysics, soil geochemistry and diamond drilling. Drill results from holes LH97-03 and -05 to -08 on the Los Socavones zone are still incomplete or are being analyzed at a second laboratory. They will be made public in approximately two weeks.

Drill core from this exploration program are stored at Sulliden's field office in San Ignacio. For sampling, the drill core was split in two, and one half was kept for future reference and the other half was sent for analysis. All analyses for gold and base metals were done by SGS laboratories in Lima and Toronto. Verification procedures consist of systematically reanalyzing one in every ten samples and analyzing standards inserted randomly into the sequence. In addition, approximately five percent of all drill core samples were reanalyzed by Chemex in Vancouver.

Based on the results of this first phase of exploration on the Las Huaquillas property, Sulliden confirms that an important, mineralized, porphyry-related system is located within the claims, characterized by Cu-Au plus or Minus Mo porphyry-style mineralization and Au-Ag-Zn-Pb-Cu epithermal mineralization. A second phase of field work, budgeted at approximately $US 1 million, will commence in a few weeks, and will consist of extending the geophysical and geochemical surveys to the northeast and southwest, a detailed geological survey aimed at looking at the alteration and metal zonation, and a minimum of 2,000 metres of diamond drilling. Also, reconnaissance mapping and geochemical soil sampling are also planned for the rest of the property (9,800 hectares).

Location maps are available upon request from the Company. -0-

NO REGULATORY AGENCY HAS EITHER APPROVED OR DISAPPROVED THE CONTENT OF THIS RELEASE.

CONTACT: Exploration Sulliden Inc.

Alain Vachon, 514/ 861-1953

514/ 861-1044 (FAX)

http://www.sulliden.com

[e-mail]

or

Exploration Sulliden Inc.

Cecilia L. Jenkins, 514/ 861-1953

514/ 861-1044 (FAX)

http://www.sulliden.com

[e-mail]