Indo Pacific Resources Ltd. Updates Progress at its Dawa Dawa, Sumwari and Ambunti Exploration Licenses.

PORT MORESBY, Papau New Guinea--(BUSINESS WIRE)--Aug. 7, 1997-- Indo Pacific Resources Ltd. (ASE:IPF) is pleased to report that fieldwork is proceeding as planned on the company's Dawa Dawa, Sumwari and Ambunti licenses.

Exploration Highlights:

Dawa Dawa

Bulldozer benching, geological mapping and channel sampling have been completed on the Mt. Haluba Prospect. Approximately one half of the assay results have been received, confirming the strongly anomalous gold values on the prospect. Best results averaged 1.7 g/t gold over the entire 80 metre length of one bench, including 26 metres averaging 3.7 g/t gold. Another bench with incomplete results includes 10 metres at 3.0 g/t gold. Bulldozing is proceeding on the Ulo Ulo Prospect. Drilling with the lightweight RB40 drill rig is expected to commence by late August.

Sumwari

The regional base-of-slope and ridge-and-spur soil sampling program on the Kru River Prospect in the Sumwari license is complete, and the majority of the preliminary assay results have been received. These results confirm widespread significant gold mineralization and highlight a major linear anomalous east-west zone 2,250 metres long and 125 to 250 metres wide, along the north side of a principal east-west splay of the Leonard Schultz Thrust. In-fill and follow-up soil sampling will be conducted in August-September, along with hand trenching and pitting. A new 2,530 km2 exploration license has been applied for to cover extensions of the mineralization model established by Indo Pacific as the main source of alluvial gold.

Ambunti

New channel sample assays have returned values between 1.4 and 34 g/t gold on the Banang Prospect, where a ground magnetometer survey is at present under way. Mapping on the Waskuk Prospect has outlined two adjacent areas of mineralization over a strike distance of 150 metres, comprising shallow to moderately-dipping sheets 4 to 5 metres wide of largely intrusive breccia at the contact between microdite and hornfelsed metasediment. Assays are pending.

Dawa Dawa

Bulldozer benching has been completed on the Mt. Haluba Prospect, and the new exposures geologically mapped and channel sampled mainly in 2 metre intervals within the mineralized zone and in 5 metre intervals outside of it. The first batch of 153 preliminary assay results have been received, returning many strongly anomalous gold values confirming the company's initial drill targets. The Mt. Haluba Prospect is located predominantly on the south side of the east-west ridge dividing Milne Bay to the north from the south coast drainage, on a spur rising steeply from a creek junction and meeting the ridge-line at right angles 200 metres distant from the junction. Two bulldozer benches were cut on the north side of the main ridge and three were cut zig-zagging down the mineralized spur to the south, finishing in the creek above the junction. Results received to date are highest in the two benches located high on each side of the main ridge. The bench highest on the spur immediately below the main ridge averaged 1.7 g/t gold along its entire 80 metre length (approximately 50 metre true width of the mineralized zone) with few values recorded below 0.25 g/t gold. The best intersection is 26 metres with values mostly between 2.0 and 6.0 g/t gold, averaging 3.7 g/t gold. Assay results from the bench high on the north side of the main ridge are incomplete, but contain a 10 metre section of 3.0 g/t gold. Assay results from the remaining 193 channel samples taken at Mt. Haluba are expected over the next ten days. Bulldozing is proceeding on the Ulo Ulo Prospect. The RB40 drill rig is expected to arrive in Lae shortly, for commissioning and onward shipment to Alotau on the 15th August. Drilling will commence several days later.

Sumwari

The regional base-of-slope and ridge-and-spur soil sampling program on the Kru River Prospect, which is intended to test the stream sediment gold anomaly, has been completed. 855 preliminary assay results representing the majority of the samples have been received. Results confirm the presence of widespread significant gold mineralization, and highlight a major linear anomalous zone 2,250 metres long and 125 to 250 metres wide, in intrusives and metasediment country rock along the northern side of a major east-west splay of the Leonard Schultz Thrust. This zone is defined by gold-in-soil values above 0.05 ppm, with coherent patches of higher values mostly in the range 0.2 ppm to 1.5 ppm gold, including an area along the southern margin at the eastern end 80 to 120 metres wide and 700 metres long. Some in-fill and follow-up soil sampling will be conducted over the next two months, along with hand trenching and pitting which will be laid out within the next week. Consideration is being given to conducting a ground magnetometer survey to assist in mapping rock types and structures in areas of poor outcrop. Drill targets will be defined on the prospect by mid-October.

In late July an application for a new exploration license (EL 1233 application) was made over 745 sub-blocks (2,530 square kilometres), extending east and west from the company's Sumwari exploration license and adjoining two of Highlands Pacific's existing 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.

Ambunti

Fieldwork is proceeding on both the Banang and Waskuk Prospects. On the Banang Prospect, channel sampling in short hand-dug trenches positioned to locate the edge of the mineralization immediately east of Banang Creek, returned apparently inconsistent gold values. Horizontal channel samples up to 5 metres long taken low down on the walls of the new trenches 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 further thorough geological examination will be made of the location, and some deep pitting carried out. A ground magnetometer survey is at present under way on the prospect. On the Waskuk Prospect, two adjacent areas of mineralization have been located, comprising shallow to moderately-dipping sheets of largely intrusive breccia representing the contact zone between a wide microdiorite body and hornfelsed metasediment. The contact zone is altered over a width of 4 to 5 metres, including a strongly silica-injected 1 metre interval with abundant arsenopyrite. It is disrupted by faulting, and appears to dip northwest over a strike distance of 150 metres. Assays are pending.

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 on Papua New Guinea, a country renowned for its world class gold and copper mines. Indo Pacific holds more than 5,500 square kilometres of prospective ground in 12 exploration licenses including two joint ventures, is a joint venture partner in one application for a new license over approximately 1,000 square kilometres and is the sole applicant for a new license over an area of 2,530 square kilometres. Interesting gold occurrences have been identified in all licenses, with several also showing significant copper potential.

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CONTACT: Indo Pacific Resources Ltd.

Bruce Macdonald, 403/ 543-2590

Calgary, Alberta

or

Indo Pacific Resources Ltd.

Allan Dolan, 403/ 543-2590

or

Indo Pacific Resources Ltd.

Peter Macnab, 011/675-693-7208

(5:00 to 7:00 pm EST)

or

Indo Pacific Resources Ltd.

Peter Slaughter, 011/617-3831-9620

Brisbane, Australia