JAG to Salvage Precious Metals from Nepean Bay.

MONTREAL--(BUSINESS WIRE)--FEBRUARY 28, 1996--Les Mines J.A.G. (ME:JML) J.A.G. MINES has the pleasure to announce the conclusion of an agreement with 1010522 Ontario Ltd for a joint project aimed at recovering precious metals (gold, silver and platinum group metals) from the wastes of the Canadian gold refinery on the Ottawa River.

A permit has been emitted to the Ontario company by the Ministry of Natural Resources of Ontario allowing the salvaging of sediments from Nepean Bay in Ottawa.

According to the agreement, which is subject to the approval of the regulatory authorities, JAG will be the manager of the project and acquire a 50 percent interest in return for issuing 4,300,000 shares of its capital. Three million of these shares will be escrowed and then released in slices of 300,000 shares for each 10,000 ounces of gold and silver recovered.

In its February 1996 report, Mr. K. Gie Tan, Ph.D., of the Canadian Ministry of Energy, Mines and Resources, writes the following:

"An independent assessment of the Ottawa River Project of Maple Leaf Processing (MLP) was undertaken and, based on the available documentation, the following conclusions are derived:

- prerequisites have been established for recovery and benificiation of decades of waste, estimated to be on the order of 50,000 t of river sediments, partially originating from the Royal Canadian Mint (RCM) located at Nepean Bay;

- whereas uncertainties about the exact magnitude of the deposit exist, plausible estimates from historical accounts, technological considerations and exploratory sampling programs delineate the presence of at least 1 million ounces of precious metals such as gold, silver and platinum group metals (PGM)-a minimum of 20 oz/t;

- development work and pilot scale campaigns indicate that these values (min. $100/oz or $2000/t) can be recovered and extracted at reasonable costs, not exceeding $400/t of river deposits that include a variety of debris, silts and soils, precipitates, loose boulders, rubble, timber and gold refinery wastes; and

- recovery of the submerged waste can be conducted safely and expediently, with significant economical and environmental benefit to the area."

Further on, Mr. Tan writes: "...The prize to be gained in pursuing this project consists, amongst others, of the following aspects:

- recovery of valuable resources on the order of $100 million or more;

- a relatively short operating period, given the small amount of materials to be handled, with minimal disruption of the environment;

- excellent profit potentials based on end products with an estimated minimum value of $100/oz versus total operating costs on the order of $20/oz maximum, including financing, clean-up and marketing."

CONTACT: J.A.G. MINES LTD

Pierre Gevry

President

514/849-7336

514/849-9260 (fax)