Indo Pacific Resources Ltd. Reports on Lake Kopiago Drilling Program and Gazelle Peninsula Sampling Results.

CALGARY, Alberta--(BUSINESS WIRE)--Oct. 25, 1996--INDO PACIFIC RESOURCES) (Alberta Stock Exchange IPF.) Port Moresby -- Indo Pacific Resources Ltd. reports that its first drill hole of the Lake Kopiago drilling program has been completed to a depth of 252 metres.

The drill hole intersected only intrusive rocks, with relatively minor (1 percent-5 percent) pyrite disseminated throughout the uppermost 200 metres. The lower 60 metres of the drill hole intersected weakly propylitized intrusives. The hole has been logged in detail and core samples sent to the laboratory in Lae for assay. The drill log has been sent to the geophysical contractor for further analysis and interpretation. Detailed ground magnetic surveys to define the intrusive/limestone contact will be undertaken prior to further drilling of this prospect.

At the Company's Gazelle Peninsula joint venture property in East New Britain initial geological reconnaissance of the Cape Lambert area has been completed. As a result of this work Indo Pacific has acquired 50 percent of the shares of Pima Mining (PNG) Pty Ltd., which owns a 100 percent interest in the license (see 16/08/96 release).

The survey covered an area of approximately 15 km2 concentrating in the vicinity of known mineralization on the Doilene prospect. Old bulldozer trenches were opened up, re-mapped and re-sampled, and detailed stream geochemistry was conducted. A total of 184 samples were collected. Sampling results include a 10.9 metre section averaging 26.9 grams per ton (0.86 ounces) gold within which a 40 centimetre quartz-pyrite vein assayed 136.4 grams per ton (4.4 ounces) gold and a 1.0 metre section of gossanous quartz-magnetite skarn assayed 147.8 grams per ton (4.7 ounces) gold.

Other assays in the section included 2.0 metres at 16.9 g/t gold, 4 metres at 9.84 g/t gold, 3.5 metres at 5.14 g/t gold and 3 metres at 4.65 g/t gold. The samples are believed to be "across strike". In addition, visible gold and anomalous pan concentrate gold values were recorded from small streams not previously sampled in the vicinity. The principal rock type is interpreted as gossanous iron skarn associated with an altered intrusive dyke.

The next phase of exploration will include augured soil samples to test weathered bedrock, bulldozer trenching to greater depths and further geophysics.

After a lengthy delay Indo Pacific reports that a bulldozer will commence its trip up the Sepik River from Madang to the Company's Yerikai prospect, Ambunti License area, within the next 7 days at which time trenching and drill pad preparation will be initiated.

Indo Pacific Resources Ltd. is a mining exploration and development company that seeks to identify and exploit precious metal resources in Southeast Asia. Initially, the company is exploring prospects in Papua New Guinea, a country renowned for its world class gold and copper mines. Indo Pacific holds more than 7000 km2 of prospective ground under 14 exploration licenses.

Gold occurrences have been identified on every license, several of which also have significant copper potential. -0-

Note To Editors: The Alberta Stock Exchange has neither approved nor disapproved the information contained herein.

CONTACT: Indo Pacific Resources Ltd.

Bruce Macdonald, 403/543-2590

or

Indo Pacific Resources Ltd.

Allan Dolan, 403/543-2590