Indomin Resources Limited - Contracts of Work Initialed.

TORONTO--(BUSINESS WIRE)--April 11, 1996--INDOMIN RESOURCES LTD. (VSE:IRL) Indomin Resources Limited today announces that its applications for sixth generation Contracts of Work (CoW) with the Indonesian Government covering the Busang North gold project, East Sulawesi gold project and the Kumamba heavy mineral beach sand project have been initialed jointly by the Indonesian Department of Mines and Energy, Indomin Resources Limited and Indomin's Indonesian joint venture partners.

Indomin's CoWs will now be presented to the Indonesian legislature and Foreign Investment Board for final review, before signature by President Suharto.

The sixth generation Indonesian CoW is considered by Indomin to be one of the most secure mining tenures in existence anywhere in the world. It guarantees the foreign partner security of tenure for at least 30 years and sets out up front all tax rates, royalties and all other conditions relating to the development of any economic mineralisation discovered within the CoW area.

"Of particular importance is a reduction in the tax rate from 40 percent in earlier CoW's to 30 percent in the sixth generation CoW," said Indomin President, Ken McKechnie.

Busang North CoW

The Busang North CoW covers 127,644 hectares (315,280 acres) immediately along structure to the northeast from the spectacular Busang gold discovery of Bre-X Minerals Limited. Indomin has an 85 percent interest in this project, and its joint venture partner PT Amsya Lyna has a 15 percent interest financed to production.

Indomin currently has five geologists and total field team of 30 working at Busang North undertaking a detailed mapping, soil, stream sediment and rock chip sampling program. SLAR and structural interpretation is underway and a contract for a 3,482 line kilometre airborne aeromagnetic survey has been let and will be flown over the next two weeks.

This first phase program follows preliminary sampling at Busang North late last year which returned abundant free gold, zircon and sulphide minerals, including cinnabar (mercury sulphide) in panned concentrates from headwaters of small creeks in the southeast sector of the CoW area. This program will continue until the end of May.

Surface gold anomalies identified by the first phase exploration and any buried intrusives delineated by aeromagnetics will then be followed up with a more detailed ground program with the aim of ranking targets for drilling during the last quarter of 1996.

East Sulawesi CoW

The East Sulawesi CoW covers 735,000 hectares (1,815,450 acres) with the potential to host large Carlin-type carbonate replacement gold deposits. Indomin has a 90 percent interest in this CoW and its Indonesian affiliate PT Indo Mineratama has a 10 percent interest financed to production.

The project area covers a series of carbonate sedimentary sequences with known hot spring activity along major thrust faults. The setting is directly analogous to the Mesel deposit being developed by Newmont in northern Sulawesi, which has quoted open pit reserves of 12.25 million tonnes grading 5.12g/t gold (0.16oz).

A 8,500 line kilometre airborne aeromagnetic survey is planned for June, and a $Can1.6 million BLEG (bulk leach extractable gold) program will commence in September to identify gold mineralised carbonates.

Kumamba CoW

The Kumamba CoW covers 292,525 hectares (722,536 acres) over world-class, multi-product (rutile, leucoxene, ilmenite, magnetite, zircon and gold) heavy mineral beach sand deposits distributed along 250km of the northern Irian Jaya coastline.

Indomin has a 60 percent interest in this project, and its Indonesian partners are PT Telandan Utama 30 percent and affiliate company PT Indo Mineratama 10 percent (financed to production).

Rutile and zircon are in increasing short supply, particularly in the booming economies of Southeast Asia. The Kumamba project is well positioned to service these markets and has the potential to provide Indomin Resources Limited with a long-life cashflow.

Exploration expenditure of $US2 million to date has identified a potential resource at Kumamba of 450 million tonnes of free flowing mineral sands with a minimum of 5 percent heavy minerals commencing at the coast and extending up to 8km inland with little or no overburden.

Detailed metallurgical testwork has shown that a number of high quality, high value industrial minerals can be produced from the Kumamba sands using standard processing technology.

This year, Indomin will complete detailed resource evaluation and commence a feasibility study on establishing a large, long-life mining operation at Kumamba. -0-

NOTE TO EDITORS: No stock exchange has approved or disapproved the information contained herein.

CONTACT: Indomin Resources Limited

Paul Loudon, 416/955 9535