Intrepid completes acquistion of Divisadero Gold-Silver Concession, El Salvador.

TORONTO--(BUSINESS WIRE)--June 4, 1997--Intrepid Minerals Co. (Alberta Stock Exchange IAU.) Intrepid Minerals Corporation announced today that it has acquired the right to earn a 50% interest in the recently granted Divisadero Concession in eastern El Salvador. Intrepid will be the operator of this project, with the remaining 50% being held by Focal Resources Ltd. (ASE:FCJ). Divisadero forms part of the El Salvador package optioned from High River Gold Mines Ltd. (TSE:HRG).

The Divisadero Concession occupies a strategic location in the eastern El Salvador Montecristo gold district, and is located midway between the Barrios Concession, currently being drilled by Intrepid/Focal and the San Sebastian gold mine. San Sebastian, had gold production in excess of one million ounces at an average grade exceeding 2 oz/ton gold from 1900-1920 and occurs on a similar structural intersection as the Divisadero mine, some 20 kilometres to the west. San Sebastian was recently optioned by Teck Corp. "With this acquisition, Intrepid has gained an even better foot hold in what is being recognized as a world class gold district," said President Laurence Curtis.

The Divisadero mine consists of a complex vein network over a strike length of 10,000 feet. Mining was undertaken in 1905-1921 by the Butter Salvador Mines Ltd., the same company that developed San Sebastian. Over this period, the mine produced 5.66 million ounces of silver and 93,971 ounces of gold. Head grades averaged 6.3 oz/ton silver and 0.11 oz/ton gold.

The resource potential of the Divisadero structure to host a significant bulk tonnage epithermal stockwork deposit has never been tested. "Our objective will be to test the former workings over a strike length of 10,000 feet to a depth of 700 feet vertical. The untapped precious metal potential of this mine provides Intrepid with a flagship property, and we intend to aggressively explore and define a near surface bulk mineable target," said Laurence Curtis.

In other news, Intrepid has completed a 32 hole reverse circulation and diamond drill program on the Loma target on the adjoining Barrios property. Assay results are pending from this bulk tonnage zone. Loma has been tested over a strike length of 600 metres, representing about one third of the target strike length. -0-

The Alberta Stock Exchange has neither approved nor disapproved the information contained in this press release.

CONTACT: Intrepid Minerals Corporation

Laurence Curtis, 416/368-4525