Indo Pacific Resources Ltd. Reviews 1997 and Outlines Exploration Plans for 1998.

CALGARY, ALBERTA--(BUSINESS WIRE)--Jan. 16, 1998--Indo Pacific (Alberta Stock Exchange:IPF.) Indo Pacific Resources Ltd. (IPF.ASE) is pleased to report its plans, both corporate and exploration, for 1998.

CORPORATE OVERVIEW

In 1996 $5.5 million was raised which funded exploration programs into 1997 and enabled the purchase of 6 exploration licenses from Highlands Gold. In early 1997 Watts Griffis and McOuat Limited completed an independent geological report on all of the company's mineral holdings as part of a significant Canadian fund raising which was under negotiation. Subsequent events undermined this financing initiative and Indo Pacific redirected its financing efforts to Australia and Papua New Guinea.

Although the financial community responded positively to the company's overtures, the subsequent sharp decline in the price of gold and copper resulted in an indefinite deferral of these plans. Various joint venture discussions continue; however, the environment is intensely competitive with preference being given to very advanced projects.

In June, Indo Pacific was successful in raising $750,000 from several Papua New Guinea sources, including members of the management group and original seed capital investors. This group invested an additional $150,000 in September, 1997 and has pledged a further $230,000 during the first quarter of 1998. These funds have been used to fund full scale exploration operations on a select number of licenses through the fall of 1997 and reduced programs thereafter. The company is presently assessing several fund raising alternatives. During the course of the year Indo Pacific reduced its operating costs to $30,000 per month, which includes all office expenses, clerical personnel, staff and consulting geologists and miscellaneous costs.

Two senior personnel were rationalized, the number of national geologists was reduced to five and one geophysicist/computer draftsman and one accountant/controller have been retained. Mr. Karl Jensen assumed the role of Chief Geologist and Peter Macnab relinquished his position as president and adopted the role of a consulting technical advisor. Mr. Macnab continues to serve as a director of the Company. Mr. Wayne Golding was appointed a director and is managing the Papua New Guinea operations. Mr. Hii Yii Ann of Port Moresby, an original seed capital investor, has been appointed a director of Indo Pacific Mining (PNG) Limited, the company's wholly owned subsidiary. Mr. Peter Slaughter resigned as the company's chairman late in the year and this office remains vacant.

1997 EXPLORATION SUMMARY

Exploration was concentrated on four licenses: Bowutu Mountains, Dawa Dawa, Ambunti and Sumwari.

BOWUTU MOUNTAINS

At Bowutu Mountains three soil grids were completed. Results delineated two areas of anomalous gold, the first an irregular area of 80 to 100 metres across near the main occurrence of high grade sub out-crop boulders in the Du River headwaters. The second is a linear northeast trending zone more than 200 metres long with two distinct centers of higher values. Two principal hosts for high grade gold mineralization have been identified in the area: a) vein quartz and related silicified breccia with minor sulphide and b) dark sulphide healed breccia.

Float samples collected in the eastern tributary of the Du River near the main sub-outcrop exposure returned values of 5.2, 5.4, 12.3, 35.3 and 133.6 (check assay 138.4) g/t gold, with anomalous copper, zinc and arsenic. Four float samples were also collected in the western tributary of the Du River and returned values of 12.6, 12.8, 30.7 and 234.0 g/t gold with minor copper, zinc, silver and one high lead value of 0.55 percent, as well as strongly anomalous arsenic. Dark sulphide healed breccia is responsible for a gold occurrence one kilometre to the southeast of the main sub-outcrop where values of up to 30.9 g/t gold have been recorded in breccia float. Two ridge and spur soil lines completed returned anomalous values, but no further work has been completed in the area.

Bulldozer trenching completed in the eastern part of the first soil anomaly exposed shallow dipping quartz veins between 20 centimetres and 3 metres in width. Gold in channel samples in and adjacent to the veins range from 0.5 to 27.7 g/t gold, the latter over a 1.8 metre true width. Bulldozing was suspended before bedrock was uncovered in the western part of the anomaly, where large sub-outcrop quartz-sulphide boulders are interpreted as being derived from a feeder to the vein. Soil anomalies in the second gold zone have not been trenched. Further sampling and geophysics are needed to identify drill targets. The prospect continues to be an attractive target for bonanza grade gold.

DAWA DAWA

At the Dawa Dawa license work was completed on two prospects: Mt. Haluba and Ulo Ulo. At Mt. Haluba drill results confirmed the presence of gold in a secondary blanket. The probable average gold grade is approximately 2 g/t; however, because of the relatively shallow depth of weathering the total amount of gold present in the tested area and possible extensions is unlikely to exceed 20,000 ounces. At Ulo Ulo drill results indicate that, in spite of gold enrichment in the surface soil, no secondary blanket exists. Future exploration will target the five remaining prospects not yet explored as well as following the mineralized Ulo Ulo structure to the northeast and southeast.

AMBUNTI

At the Ambunti license, fieldwork was conducted on the Banang and the Waskuk prospects. On Banang channel sampling in several short hand dug trenches, positioned to locate the edge of the mineralization, returned apparently inconsistent gold values. Horizontal channel samples up to 5 metres long taken from the lower extremities of the new trench walls returned values of 1.4, 1.6. 3.7, 5.5, 5.6, 15.2, 15.3 and 34.5 g/t gold, while vertical channels immediately above these samples contained values mostly less than 0.1 g/t gold. A computer analysis of a recently conducted ground magnetometer survey is needed to further interpret the structure. Two adjacent areas of mineralization were outlined by hand dug trenches at the Waskuk prospect.

SUMWARI

At the Sumwari license, two geologists and two senior field assistants conducted continuous exploration in the Kru River alluvial area from May through October. Detailed geological mapping was conducted throughout the area including stream sediment sampling and dish prospecting, followed by base of slope and ridge and spur soil sampling as well as hand dug trenching. Over 2,000 samples were collected. The structure of the area is dominated by the Leonard Schultz Fault Zone and is geologically similar to the copper-gold mineralized Frieda River area located approximately 60 kilometres to the west and along this fault.

Initial work has identified the Kru River prospect, a mineralized zone, more than 2 kilometres long and up to 500 metres wide, which is related to quartz-sulphide veining in altered dioritic intrusives. The anomaly is defined by gold-in-soil values above 0.05 ppm, enclosing coherent patches of higher values mostly in the range of 0.2 to 1.2 ppm.

Assay results from soil sampling and trenching work are expected within the next 30 days. Preliminary results are encouraging and continue to confirm the Kru River area as a target with major potential for both primary mineralization and secondary gold caps to the point that Indo Pacific has applied for an additional 2,530 square kilometre exploration license extending east and west of the Sumwari license until it abuts two Highlands Pacific licenses. This application was made to cover extensions of the mineralization model now established as the main source of alluvial gold in the Sumwari license, and contains areas of known mineralization.

1998 EXPLORATION PROGRAM

Indo Pacific's 1998 exploration efforts will be concentrated in areas with demonstrated potential for world class gold or copper/gold deposits. Only programs designed to clearly define the potential of these prospects and to indicate drill targets will be conducted. The company believes that Sumwari, Star Mountains and New Hanover hold such potential. Activity on Indo Pacific's remaining license areas will be limited to a sharply focused program of identifying the most promising prospects and relinquishing excess land thus greatly reducing the minimum expenditures necessary to retain these interests. By following this strategy, and keeping operating costs to a minimum, the company believes that it can meet its operating costs and conduct the below described 1998 exploration program on a budget of $1,250,000.

SUMWARI

At Sumwari, including the area under application, a ground magnetometer survey will be completed and initial drill targets will be identified at the Kru River prospect. Reconnaissance sampling will be conducted on other portions of the license including the Wasi porphyry mineralization as well as the early 1970's copper drill sites of US Steel and other Highlands Gold indicated anomalous gold areas. In addition, geological mapping and sampling will be conducted on the Nuwe and Weisas River copper-gold occurrences (located in the 1970's, but never followed up) which are located in the new application area.

STAR MOUNTAINS

At Star Mountains, a ground magnetometer survey will be conducted in the Tabubil Block over an anomalous copper-gold area to establish the suspected presence of shallow intrusives under a thin sedimentary cap. Earlier generation prospecting trenches which recorded interesting gold values in weathered bedrock at the Bolovip Block will be re-located and re-opened and additional detailed reconnaissance will be undertaken.

NEW HANOVER

At New Hanover, detailed reconnaissance of selected prospects will be completed, including BLEG stream sediment sampling and soil sampling as well as ground magnetometer surveys. Further detailed mapping and sampling of the extensions of the Kuliuta prospect will also be undertaken.

OTHER LICENSES

With relatively minor expenditures, drill targets will be identified at the Ambunti, West New Britain, Kairiru Island, Gazelle Peninsula and Wide Bay licenses. Drilling will be undertaken when budget permits or a suitable joint venture partner is identified. Specific programs will also be undertaken at Dawa Dawa (reconnaissance), Bowutu Mountains (ground geophysics to identify drill targets), Middle Waria (reconnasissance), Henganofi (mapping, sampling and limited ground geophysics) and Strickland Gorge/Lake Kopiago (prospecting of the Ku and Tabe intrusive stocks as well as the Lower Bulago River).

Indo Pacific Resources Ltd. is a mineral exploration and development company that seeks to identify and exploit precious and base metal opportunities in Southeast Asia. The Company's focus is gold in Papua New Guinea, a country renowned for its world class mines. The Company holds more than 5,500 square kms of prospective ground, under 12 exploration licenses, including 2 joint ventures and has applied for a new license over approximately 1,000 square kms. Interesting gold occurences havd been identified on every license, with several also showing significant copper potential.

THE ALBERTA STOCK EXCHANGE HAS NEITHER APPROVED OR DISAPPROVED THE CONTENTS OF THIS PRESS RELEASE.

CONTACT: Indo Pacific Resources Ltd.

Bruce Macdonald, 403/ 243-4578

or

Indo Pacific Resources Ltd.

Wayne Golding, 011/675-325-3118 or 323-5511