Indo Pacific Resources Ltd. Reports Positive Results from Recent PNG Exploration Programs.

PORT MORESBY, Papua New Guinea--(BUSINESS WIRE)--Jan. 21, 1997--

And Its Focus for the First Quarter of 1997

Indo Pacific Resourc(Alberta Stock Exchange IPF. ) Indo Pacific Resources Ltd.(IPF.ASE) is pleased to provide the following update on the Company's exploration activities in Papua New Guinea as well as its plans for the first quarter of 1997.

EXPLORATION RESULTS

During the last quarter of 1996 Indo Pacific continued exploration programs on its Lake Kopiago/Strickland Gorge, Gazelle Peninsula, Ambunti and Kairiru Island license areas, with positive results from all prospects under investigation. Following the completion in November of the Highlands Gold license acquisitions reconnaissance visits were made to three of the six new areas: Bowutu Mountains, Sumwari and Dawa Dawa. Lake Kopiago/Strickland Gorge

In the Bulago River headwaters of the Lake Kopiago/Strickland Gorge license area, 6 weeks of fieldwork by three geologists was concentrated in the Suguma Creek area. Mineralization comprises gold with base metal sulphides in quartz(-carbonate) cemented fault breccias and veins occupying two intersecting sets of fractures, cutting northeasterly and southeasterly across mixed intrusives and hornfelsed sedimentary rocks marginal to the eastern Idawe Stock. Best assay results received to date are 12.1 g/t gold over 2 metres true width in quartz vein with base metal sulphides in diorite and 26.3 g/t gold in grab sample from a quartz healed breccia with base metal sulphides. Additional assay results are pending. Follow up contour benching will be conducted along with further detailed mapping and sampling before drilling is planned. This area was drilled inconclusively by Equitorial Gold in the Late 1980's, based on their interpreted orientation of breccia zones with assays of up to 23 oz/tonne gold.

Gazelle Peninsula

At the Company's Gazelle Peninsula joint venture property in East New Britain (Indo Pacific 50%) initial geological reconnaissance of the Cape Lambert area was completed with very encouraging results. On the Doilene prospect, a 15 square km area, old bulldozer trenches were opened up, re-mapped and re-sampled and detailed stream geochemistry was conducted. A total of 184 surface samples were collected. Results included a 10.9 metre section averaging 26.9 g/t gold within which a 40cm quartz-pyrite vein sampled 136 g/t gold. A 1.0 metre section of gossanous quartz-magnetite skarn assayed 147 g/t gold. Other samples over a 2 to 4 metre width returned assays ranging from 4.65 to 16.9 g/t gold.

Ambunti

In the Ambunti license area fieldwork was concentrated on the Banang Prospect (formerly the Yerikai Prospect) where a first stage of bulldozer cross cut trenching and benching was completed along more than 600 metres strike length of mineralization in Banang Creek. Assay values received to date confirm the location of the mineralized structure, with a best result of 6.6 g/t gold over 5 metres. A second mineralized zone sub-paralleling the main Banang zone contains a 20 cm quartz vein with base metal sulphides which previously assayed 54 g/t gold. A bulldozer bench has exposed a third zone of strongly brecciated schists with some patchy quartz veining. Assays indicate a 10 metre wide mineralized zone with a best assay result of 2.5 g/t gold over 5 metres. Samples from additional trenches included 0.25 to 1.6 g/t gold over a true width of 35 metres, 0.2 to 0.6 g/t gold over a 15 metre true width and 0.3 to 1.6 g/t gold over a 40 metre true width, with two end samples containing the highest values of 1.3 and 1.6 g/t gold.

Kairiru Island

In October/November, one months fieldwork was conducted by three geologists on Kairiru Island. A base camp was constructed on the Shlagat Prospect high on the central northern flank of the island. Geological mapping of the prospect shows that gold occurs with pyrite and some base metal sulphides in high level epithermal quartz veins and quartz cemented breccias. Best mineralization identified on the prospect occurs in an easterly trending major fracture with quartz healed breccia, quartz veins and stockwork quartz veinlets forming a zone up to 15 metres wide and dipping steeply to the north. The best assay results from Indo Pacific's recent program include 3 metres of 6.85 g/t gold and 6 metres of 3.4 g/t gold, including 1 metre of 7.0 g/t gold. Copper and zinc are anomalous in many samples. Next stage exploration will include a detailed structural analysis and infill pitting. Consideration will be given to the use of ground geophysical prospecting techniques leading to the siting of diamond drill holes on the prospect.

Bowutu Mountains

In November and December two reconnaissance visits were made to the Bowutu Mountains license area and, in particular, the Du River Prospect. Mesothermal quartz-arsenopyrite vein mineralization was examined in float and sub-outcrop in one small drainage which had been identified by Highlands Gold for priority follow up. Five grab samples collected and assayed by a potential joint venture partner returned values of 5.2, 5.4, 12.3, 35.3 and 133.6 (check assay 138.4) g/t gold, with anomalous copper (high of 0.33%) and zinc (high of 0.35%), as well as high arsenic values (high of 16.3%). Exploration by Highlands Gold located float with similar metal values over a distance of more than 1 km along a broad low ridge. Access to the area is good by means of recently cut timber roads from the coast.

Sumwari

A brief visit was also made to the Sumwari license in early December, mainly to observe the recent gold rush area. Local villagers are producing gold by panning and by using face masks to pick up gold from the beds of numerous creeks where it is visible. The coarser gold is tabular or dendritic and varies up to 1cm in length, with the bright colour of secondary gold. It shows little evidence of transport and is probably formed in the heads of the small creeks being worked. Samples of quartz float collected by Highlands Gold assayed up to 17.6 g/t gold. Ongoing fieldwork will concentrate on rapidly confirming and outlining the source mineralization of this gold which appears to be shedding from more than 3 km strike length of the Leonard Schultz Zone and possibly up to 12 km strike length suggested by pan concentrate results, detailed stream sediment and soil sampling and geological mapping.

Dawa Dawa

In December the Dawa Dawa license area was visited in order to examine the Highlands Gold trenches at Mt. Hulaba as well as the historic Ulo Ulo underground copper/gold workings. Both sites lie adjacent to a new all weather timber road completed over the range earlier this year, making access and logistics the simplest of all Indo Pacific's license areas.

EXPLORATION PROGRAMS-FIRST QUARTER 1997

As a result of the work programs conducted by Indo Pacific during the second half of 1996 all exploration licenses, including those recently acquired from Highlands Gold, have been extended by the Minister of Mines and Petroleum for another 2 year term. Having met its statutory obligations in this regard, Indo Pacific is concentrating its exploration efforts on three license areas: Bowutu Mountains, Dawa Dawa and Ambunti, which can be advanced rapidly to the drilling phase and have the potential to deliver particularly exciting results. In addition, reconnaissance programs will be completed at the Sumwari, Henganofi and New Hanover license areas, which have shown particular, early stage, promise.

Bowutu Mountains

Bowutu Mountains license contains three main areas of interest; the Du River Prospect comprising mesothermal quartz arsenopyrite-gold veins in gabbros, the Kui copper anomaly with quartz-chalcopyrite veining in doleritic sea-floor volcanics and the Simpoma gold anomaly, comprising epithermal gold veins accompanying argillic alteration in andesitic sea-floor volcanics. The license area is considered to be highly prospective for mesothermal quartz- arsenopyrite-base metal sulphide veins with bonanza gold grades (assays up to 10 oz/tonne gold, 25 oz/tonne silver). The Du River Prospect has the potential to contain deposits of more than 500,000 tonnes in size, potentially hosting more than 1,000,000 ounces of gold. Detailed geological mapping and geochemical sampling, accompanied by some ground geophysics and, in the later stages, bulldozing, is underway at the Du River Prospect. This will be followed immediately by 3 months of diamond drilling commencing in the first quarter. Basic reconnaisance will also be conducted at the Simpoma and Kui Prospects.

Dawa Dawa

The Dawa Dawa license area is located in the historic Milne Bay Goldfield. It is underlain by Eocene sea-floor basalts with minor intercalcated sandstone, chert and limestone, intruded by Oligocene to mid-Miocene gabbro, syenite and monzonite. Past small scale copper-gold mining and more recent exploration in the license area have established prospectivity for: a) high grade gold in mesothermal quartz veins associated with the intrusives, in places accompanied by base metal sulphides; and b) gold-copper skarns in limestone lenses near gabbro contacts. Detailed geological mapping and sampling, including bulldozer benching and trenching, is underway. This will be followed up by 3 months of diamond drilling using a crawler mounted drill rig.

Ambunti

At the Ambunti license area, which was the focus of an intensive program in the last quarter of 1996, two initial drill pads have been prepared at the Banang Prospect. After the rainy season passes work will resume with additional bulldozing and an initial drilling program of 600 metres. Assay results are pending from work completed in December. The license is considered to be highly prospective for gold in a number of areas and, in particular, the Banang, Waskuk and Salumei Prospects.

The Company does not anticipate any difficulties in securing and mobilizing equipment to any of the license areas.

Indo Pacific Resources Ltd. is a mining exploration and development company that seeks to identify and exploit precious metal resources in Southeast Asia. The Company's focus is Papua New Guinea, a country renowned for its world class gold and copper mines. Indo Pacific holds more than 5,500 square km of prospective ground, under 12 exploration licenses and 2 joint ventures. Gold occurrences have been identified on every license, with several also showing significant copper potential. -0-

The Alberta Stock Exchange has neither approved nor disapproved the contents of this press release.

CONTACT: Indo Pacific Resources Ltd.

Bruce Macdonald, 403/ 543-2590

Allan Dolan, 403/ 543-2590

Peter Macnab, 011/675-693-7208 (5:00-7:00pm EST)

Port Moresby, PNG