Indomin Resources Limited new gold zones identified at Busang North.

JAKARTA, Indonesia--(BUSINESS WIRE)--Feb. 18, 1997--Indomin Resources Li (VSE:IRL.) Indomin Resources Limited is pleased to announce that exploration on its Busang North gold project in East Kalimantan, Indonesia continues to yield encouraging results.

The detailed reconnaissance geochemical program over this 127,300 hectare Contract of Work application area was completed in December, and the majority of results from this program are now to hand. This work has identified an additional 11 significant gold geochemical anomalies draining from volcanic sources, lifting the total anomalies identified within the project area to 19. Follow-up mapping and soil augering of these anomalies will continue in the current quarter with the aim of ranking the prospects for drilling.

The directors of Indomin are encouraged that systematic exploration of previously reported structural similarities between the company's Busang North project and the structural setting of the massive Busang deposit in the adjoining CoW application area of Bre-X Minerals Limited to the south is resulting in the generation of significant drilling targets.

The anomalies line up along regional northeast trending boundary fault structures associated with the Kutai Basin margin, crosscut by northwest transfer fault and fractural systems. These structural intersections provide the appropriate ground preparation for major implacements of gold by Tertiary Sintang volcanic intrusives.

Results for infill soil sampling at the H61 Prospect has defined an anomalous zone 400m by 700m open to the north and east. Strong arsenic (up to 831 ppm As) and antimony (up to 21 ppm Sb) values were returned in close association with the known extent of a hydrothermal breccia outcrop. Anomalous soil gold values (0.1 ppm Au) appear to be associated with clay-silica altered intermediate intrusives and quartz veining immediately north of the mapped extent of the breccia.

Accurate mapping of this anomaly is hampered by soil cover. As a result, there is a possibility that the breccia zone is more extensive beneath the soil cover, particularly as large blocks of country rock become more common in the breccia structure at higher elevations. It is common in high level breccia systems that only low grade gold reaches the surface though fractures in and around large blocks at the top of the system, while pooling of gold rich fluids beneath these blocks has resulted in economic gold deposits.

Further soil sampling and mapping is underway at H61 while the last 2km of a bulldozer access road to the prospect is completed. Upon its completion, a number of trenches will be cut across the anomalous zone. Subject to the signing of the Contracts of Work, a diamond drilling program is planned to commence on this prospect next month. Additional data generated from the soil sampling and trenching will be used to site an initial diamond drilling program of 500m drillholes.

At the Gunung Hagar Prospect, follow-up soil sampling on a 50m x 25m grid has returned assays of up to 5ppm Au over a zone 750 metres long by 175 metres wide. This program continues with the aim of rapid delineation of drill targets.

In the southeast of the CoW area on the Kutai Basin margin near Sungai Lejin, a new 150m wide breccia zone has been discovered. This discovery is considered encouraging given the high gold geochemistry (up to 65.2ppm Au in panned concentrate, 390ppb Au in stream sediments and 11ppb Au in BLEGs) in the drainages immediately to the north and northeast. Up to 3% detrital cinnabar (mercury sulphide and a key indicator of epithermal gold deposits) was returned from analysis of the heavy mineral concentrate in these samples. Significant placer gold mining activity was previously undertaken by local villagers in drainages within the centre of this anomaly.

In the northeast of the CoW area near location H579, an anomalous zone 3km x 4km has been identified with rock chips from outcrop of up to 2.2g/t Au. Stream sediment samples from this area returned anomalous gold values in BLEGs of up to 290ppb Au.

The company has granted incentive stock options to new employees for the acquisition of 35,000 shares exercisable at $6.00 each for five years.

No stock exchange has approved or disapproved the information contained herein

CAUTIONARY STATEMENT

This News Release includes certain "forward looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Indomin Resources Limited, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Indomin Resources Limited's expectations are disclosed under the heading "Risk Factors" and elsewhere in documents filed from time to time with the Vancouver Stock Exchange, the United States Securities and Exchange Commission and other regulatory authorities. All subsequent written and oral forward-looking statements attributable to Indomin Resources Limited or persons acting on its behalf are expressly qualified in their entirety by this notice.

CONTACT: Indomin Resources Ltd., Jakarta

Chuck Forrest, 416/955-9535