Jilbey: Volcanoganic System At Hungry Hill Confirmed, Phase Two Driling to Commence Immediately.

HALIFAX, Nova Scotia--(BUSINESS WIRE)--Dec. 4, 1996--(ME:JLB.) Jilbey Exploration Ltd. ("Jilbey") and Celtic Minerals Ltd. ("Celtic") are pleased to announce that Phase Two drilling will commence immediately at the Hungry Hill property in Newfoundland. Jilbey and Celtic are each 50 percent joint venture partners in the property. Celtic is the operator.

Recently completed Phase One drilling and Pulse EM surveys have confirmed the presence of a large volcanogenic debris flow system similar in texture and form to the Buchans transported ore bodies. Downhole geophysical results indicate that he heavily mineralized debris flow breccia in hole 9 has a massive sulphide conductive component. The same conductor has been confirmed with the surface Pulse EM survey to continue for at least 900 meters along strike and is intercepted by hole 5. As well, a stronger parallel EM response has been detected immediately south of the known mineralization continuing for at least one kilometer. The conductors are open to depth and to the west.

The most significant results to date are from hole 9 where an 80 meter thick mineralized debris flow breccia was intercepted from 184 to 264 meters and encountered base metal mineralization throughout. The interval included a 22 meter heavily mineralized intercept from 184 meters to 206 meters. Assay results over a 15.3 meter zone from 189.0 to 204.3 meters are 0.4 percent Cu, 0.9 percent Zn, 7.2 g/t Ag and 0.2 g/t Au. Included in this interval are 2.4 meters with 1.5 percent Cu, 0.4 percent Zn, 9.0 g/t Ag and 0.1 g/t Au. Other selected intervals contained up to 2.7 percent Cu, 4.5 percent Zn and 1 g/t Au. in hole 9. This 80 meter intercept of mineralized debris flow is similar to the low grade mineralization at the margins of the MacLean ore body at the Buchans mine located 20 kilometers to the northwest. The MacLean ore body contained 3.3 million tons grading 1.13 percent Cu, 7.5 percent Pb, 13.5 percent Zn, 120 g/t Ag and 0.9 g/t Au.

Holes 7 and 8 contained up to 0.2 percent Cu, 1.3 percent Zn, 13.6 g/t Ag and 0.2 g/t Au over short intervals from 85 meters to the bottom of the holes. Hole 7 was drilled to a depth of 185 meters and Hole 8 to 158 meters. It should be noted that neither of these holes was deep enough to penetrate the 80 meter thick mineralized debris flow breccia target in Hole 9.

Hole 10 intercepted 6.6 meters of mineralized debris flow breccia from 319.8 to 326.4 meters. Assay results from Hole 10 include 3.0 meters from 322 to 325 meters with 1.2 percent Zn, 10.1 g/t Ag and 0.7 g/t Au. Included in this interval is a one meter section with 1.4 percent Zn, 13.4 g/t Ag and 1.3 g/t Au. Although Hole 6 contained anomalous gold values, it was stratigraphically above the target zone encountered in Hole 9.

Geology encountered in holes 7 through 10 consists of a dynamic changing sequence of intercalated massive mafic, felsic volcanics and volcaniclastic sediments typical of a volcanogenic massive sulphide setting. Included are several discrete debris flow breccias containing sulphide clasts and sulphide matric consisting of pyrite, chalcopyrite and sphalerite.

A Phase Two drilling program of approximately 2500 meters will focus on identifying the high grade source of strong base metal values encountered to date.

CONTACT: Jilbey Exploration Ltd.

Daniel Whittaker, 902/422-4564