J.A.G. - Nepean Bay Project.

MONTREAL--(BUSINESS WIRE)--June 14, 1996--LES MINES J.A.G. LTEE (ME: JML) In a May 31 press release, Les Mines J.A.G. Ltee announced that it had retained the services of an independent consulting firm, PROTEC, to conduct a pre-feasibility study of the Nepean Bay Project. Today, J.A.G. is pleased to publicize the key points and recommendations contained in PROTEC's report.

The report presents the findings of the technical and economic assessment conducted of the project, which involves the commercial development of gold-bearing waste materials produced during the course of the Royal Canadian Mint's refining operations since 1908 and dumped in certain sections of the Bay. These sections fall within the area for which 1010522 Ontario Ltd. has an operating permit.

PROTEC is convinced that an undetermined quantity of gold, silver, platinum and palladium has been discharged into Nepean Bay over the years. The firm reports having observed the presence of gold in materials extracted from the permit site.

Since PROTEC was unable to verify the tonnage and composition of the materials deposited, it resolved to clearly establish these two parameters itself. It has therefore developed a $332,000 exploration program to be carried out under the surveillance and monitoring of another independent consultant over a period of approximately two months.

The program will consist of three main activities: a topographic survey involving the use of sonar technology, systematic sampling, and a mining-and-processing pilot test.

A sieve mesh measuring 10m x 10m will be used in the survey to identify and delimit the basin and the other sections of the Bay that are best suited to substance recovery. It will also map the surface topography of the deposits.

Based on the topographic survey results, the outline of these areas will be defined and samples taken, again using a 10m x 10m sieve mesh. The systematic sampling will be carried out in the part of the Bay that lies within a 50m radius of the discharge site, covering approximately 10,000 m2, or 50 percent, of the total permit area. A 500-tonne bulk sample will be taken in the vicinity of the discharge site.

It will then be tested in 100-tonne lots at a pilot plant in order to determine the design parameters for the required commercial installations, the composition of the raw material, and the recovery rate for gold and other metals.

According to PROTEC, the project could be organized in such a way as to minimize the amount of front money to be invested by limiting operations at the outset to carrying out the following phases of the program within a budget of $143,880: bulk sampling, transport to the test plant, processing of an initial lot of 100,000 metric tons, disposal of tailings, smelting and refining.

J.A.G. could thus invest $150,000 of front money and use the production proceeds ($112,200) from the testing of the first lot of 100 metric tons both to process the remaining 400 metric tons in stages and conduct the hydrographic sonar survey and systematic sampling, without having to invest any additional front money. However, if the program were carried out in this way, the cost would rise by $40,000, from $332,000 to $372,000.

Lastly, if the exploration studies yield conclusive findings, PROTEC projects a cost of $100,000 for the feasibility study.

J.A.G. will issue a third press release on the results of the exploration program as soon as they are known. The company plans to hire an independent consultant and begin work at the earliest possible date.

CONTACT: Les Mines J.A.G. Ltee

Pierre Gevry, Pres., 514/849-7336, 514/849-9260 (fax)