General Minerals Corporation Update on Exploration Properties.

TORONTO--(BUSINESS WIRE)--March 5, 1998-- General Minerals (TSE:GNM)

Introduction

General Minerals Corporation has been pursuing a continuous and aggressive exploration program in Chile, Peru, Bolivia and China. Following the discovery of the Vizcachitas copper-molybdenum porphyry deposit in central Chile in 1996, GMC has continued to pursue a balanced strategy of advancing the most promising properties in its portfolio. At the same time, the Company has been aggressively pursuing new, high potential exploration targets in South America and China.

In addition to the ongoing drilling at Vizcachitas, the Company is currently exploring two other important copper-molybdenum systems in Chile known as the Escalones and Productora prospects. Also, initial drilling at the Company's Ururupa precious metals prospect in northern Peru has recently been completed. Negotiations are advanced on an additional, high quality precious metals prospect in Peru which has had historic gold and silver production. In China, the Company is developing a portfolio of gold properties with significant size potential.

The following is a brief summary of the Company's current activities. As more information and results become available, additional details on each property will be provided. The most significant new developments included in this exploration update include the identification of a very anomalous, three square kilometer geophysical anomaly at Escalones which underlies an expanding area of copper mineralization and associated hydrothermal alteration exposed at surface; the promising gold, silver and base metal values that have been identified through drilling at Ururupa; plans for drilling at Productora to follow currently ongoing surface mapping, geochemical sampling and a planned IP geophysical survey; and finally, the addition of new gold properties and a large exploration area to our China portfolio.

Vizcachitas

Two diamond drills have now completed approximately half of the currently-planned 8,000 meter program being funded by GMC's joint venture partner, Boliden Ltd., which recently completed the successful acquisition of Westmin Resources Ltd., our original joint-venture partner at Vizcachitas. Seven additional holes have been drilled at Vizcachitas since the last update on drilling results (see GMC PR 98-1, Jan. 13, 1998). The objective of the current program is to identify the spatial distribution and limits of the higher grade, secondary enrichment copper mineralization. Results of this latest drilling are currently being compiled and interpreted. In total, GMC has now completed 40 diamond drill holes on the property. Concurrently, initial engineering scoping studies and water and environmental baseline studies are ongoing. An updated ore reserve will be carried out once the current phase of drilling is completed, most likely during the Second Quarter of 1998.

Escalones

Escalones is a copper-gold skarn and porphyry prospect located in the central Chilean copper belt, and is situated 35 km east of the El Teniente copper mine. Numerous tunnels were historically developed on high grade copper and gold-bearing skarn exposures (up to several percent copper and 13.9 grams per tonne gold have been obtained from channel samples of outcropping, skarn-hosted copper mineralization, see GMC press release PR 97-11, May 28, 1997). These workings have now been discovered to be situated within a four square kilometer area of hydrothermal alteration accompanied by widespread, surface oxide copper mineralization. Additionally, current bulldozer trenching and geologic mapping have disclosed that the skarn mineralization is situated peripheral to a leached, intensely hydrofractured intrusive porphyry, indicative of a porphyry-style geological setting.

The surface exploration carried out last field season through June of 1997 revealed widespread copper mineralization on the property, and provided a geological framework for the current, follow-up surface exploration program. Copper values averaging 1.22 percent over a 60 meter sample width were obtained from channel sampling of roadcuts (see GMC PR 97-11, May 28, 1997). Due to the abnormally severe snowfalls in the central Andes during the 1997 winter, exploration was not able to resume until the first week of February, 1998, following the snowmelt and repair of access and bridges damaged by record runoffs. Currently, geological mapping, geochemical sampling, geophysical surveying, and bulldozer trenching of the Escalones prospect are in progress. Initial results show the following : -0-

1.  The alteration system, which encompasses the surface
mineralization, is coincident with a highly anomalous geophysical
(SP) response. The geophysical anomaly is characterized by values
in the 200 to 500 millivolt range over an area of three square
kilometers, and is still open in two directions. The anomaly
indicates the presence of anomalous concentrations of sulphide
minerals beneath the leached, and largely scree-covered surface.

2.  The distribution of skarns, the main host rock of known
copper and gold mineralization observed on the surface, is much
larger than originally understood. The skarns represent, in their
own right, a highly attractive exploration target.

3.  Highly leached, limonite-bearing intrusive rocks, containing
multi-directional sets of limonite and quartz-filled fractures
have been exposed adjacent to the skarn-hosted copper and gold
mineralization, and are contained within the geophysical anomaly.
The intrusive rocks are interpreted as the likely source of heat
and fluid for the adjacent skarn formation, and are being
explored as a potential host to porphyry-style mineralization on
the property.

-0-

Diamond drilling at Escalones is scheduled to commence in the latter part of the First Quarter of 1998. The total area of exploration rights in the area of Escalones controlled by GMC totals over 75 square kilometers, and includes numerous targets in addition to the Escalones zone which is currently being explored. The Company has received significant interest from prospective joint-venture partners and these companies are currently in the process of reviewing the exploration data and carrying out site visits.

Productora, Pajaritos and San Antonio

GMC is continuing to explore for contact metasomatic/replacement copper-gold deposits, spatially associated with major magnetite deposits, in the Chilean "Iron Belt." Three separate prospects are being explored: Productora, Pajaritos and San Antonio. All three prospects have historic underground workings and were mined in the past for copper and gold. Cobalt and rare earth elements are also highly anomalous at Productora and Pajaritos. At Productora, shallow drilling carried out historically on the property intersected near-surface copper mineralization grading up to 0.97 percent copper over an interval of 33 meters, beginning at 7 meters below the surface. Drilling at Productora is scheduled to commence during the Third Quarter of 1998 following a current program of geologic mapping, geochemical sampling and planned geophysics. Companies are currently visiting the Productora site and there is significant interest in possibly joint-venturing this property with GMC.

Ururupa

General Minerals recently completed 12 holes in a reverse circulation drill program as a follow-up to a geophysical survey completed during the Third Quarter of 1997. The drilling is designed to test surface gold and geophysical (IP, SP) anomalies in a zone of approximately 2 square kilometers underlain by hydrothermally altered and hydrofractured volcanic tuffs. Intriguing gold and silver values, locally associated with highly anomalous base metal values, were returned over wide intervals in the drilling. For example, drill hole UP-12 contains 0.19 grams per tonne gold over the 224 meter interval beginning at surface. Included in this wide interval are 14 meters grading 0.4 gpt gold, 36 gpt silver, 0.80 percent lead and 1.70 percent zinc and a 4 meter interval grading 3.35 gpt gold with anomalous base metals. Results are currently being compiled and interpreted and additional drill targets will be identified from this analysis.

China

The first phase of drilling and tunneling at the HSG copper-gold project in Sichuan Province has been completed. This work outlined a resource of 1.27 million tonnes averaging 2.98 grams per tonne gold, 41.98 gpt silver and 1.04 percent copper, falling short of the Company's expectations. However, the success of the joint venture experience and the working relationship with our Chinese partner have allowed the Company the opportunity of using HSG as a foundation to acquire new opportunities in China. Five major gold properties with large size potential totaling approximately 300 square kilometers have recently been negotiated under two letters-of-intent, joint venture agreements which are currently in the government approval process. Concurrent with these activities, the Company is receiving significant interest from several major mining companies which are interested in partnering with us on our portfolio of China properties.

Other Properties

GMC has reviewed the exploration results at the Azurita sedimentary copper prospect in Bolivia and the Berenguela precious metals prospect located in northern Chile and has concluded that these properties do not offer sufficient potential to warrant further exploration. Consequently, the Company has decided to not maintain its interest in these properties. The estimated land payment savings from this action, and the decision to reduce other land holdings in recent months and focus exploration activities for 1998 toward only the highest priority prospects, will save the Company Cdn$1.5 million in land payments and related costs in 1998.

CONTACT: General Minerals Corporation, Toronto

Richard Doran, 303/863-7934

303/863-7965 (FAX)

E-mail: [e-mail]

Web Page: http://www.genmin.com