Indocan Resources Inc. updates on joint ventures with international panorama.

RICHMOND HILL, Ontario--(BUSINESS WIRE)--Aug. 28, 1996--Indocan Resources Inc. (NASDAQ:IDCN), wishes to provide information on exploration completed, and currently underway, on three claim blocks; Lic. No's 1962M, 1959M and 1925M, under joint venture with International Panorama Resources Corp. of vancouver, B.C.; in the rOkak Bay, and Napaktok Bay areas, Northern Labrador, Newfoundland, Canada.

A combined EM and magnetic airborne survey over the three areas has identified fifteen (15) AEM Anomaly Systems. Of those, 9 are considered worthy of ground follow up. All 9 areas will be surveyed with magnetics as well recommended by the Company's Geophysical Consultant. Time Domain EM Surveys are suggested for 3 high priority targets: one on each claim block. Horizontal Loop EM Surveys (MaxMin) will be carried out on the remaining six.

Claim Block 1962M

Airborne results show wide spread EM activity with fairly strong magnetic responses. Two main EM anomalies (A&B) were identified on this block. Anomaly A, the first of 3 high priority targets for the 3 claim groups is a single moderately strong EM conductor which occurs at the south end of an 800 metre long magnetic anomaly. The strength of the EM response and magnetic reading indicates the source of this anomaly may be related to pyrrhotite. It is believed that the magnetic anomaly extending from Anomaly A to the north emanates from the same source but cannot be detected by the AEM system due to its depth. Anomaly B is an area that also warrants further examination. It records a magnetic response of over 1000 nano Teslas (nTs) within a strike length of 800 metres. The AEM anomalies identified in association with the magnetics suggest a possible sulfide body.

Claim Block 1959M

Geophysical data indicates that Anomaly E on this group, the second of 3 high priority areas, is a flat lying target with high conductivity and records a coincident moderate magnetic response of 300 nTs. These properties may indicate the presence of a pyrrhotite rich zone. The ground geophysics, presently underway, will aid in determining the cause of the conductor and identifying the type of mafic intrusion associated with the anomalies. Six other anomaly systems were also identified on this block and will be followed up with further ground work as suggested by the Company's consultants.

Claim Block 1925M

Anomaly C, the third of the 3 high priority targets, is an good AEM anomaly sandwiched between 2 faults running west and north westerly. This is the preferred structural orientation for deposition of Nickel-Copper mineralization in this area of Labrador. The AEM anomaly appears to have high conductivity and is associated with a comparable magnetic anomaly again indicating the possibility of pyrrhotite mineralization.

Indocan's consultants are encouraged by the exploration results to date and are presently conducting ground geophysics over strong conductive and high magnetic areas to determine the necessity of implementing a diamond drill program on the three high priority AEM Anomalies. The Company will continue to report results as they become available. -0-

ON BEHALF OF THE BOARD, ROBERT SALNA, TEL: [phone]

CONTACT: Indocan Resources Inc.

Investor Relations, 905/508-0216