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LAC MINERALS ENCOURAGED BY GOLD RESERVE POTENTIAL IDENTIFIED THROUGH RECENT EXPLORATION ACTIVITIES

 TORONTO, Sept. 24 /PRNewswire/ -- Lac Minerals Ltd. (NYSE: LAC) today announced positive results from its recent exploration activity in Chile and in British Columbia, Canada.
 -- El Indio -- A comprehensive re-evaluation of all mine exploration data has identified several new, and as yet untested targets which have the potential to add significantly to the gold reserve potential outside of current mining sites.
 -- Tambo -- A preliminary feasibility study shows potential for a 100,000 ounce a year increase in gold production over current levels.
 -- El Nevada -- A 2.7 million ounce gold resource has been calculated from recent drilling efforts.
 -- Red Mountain -- Two new mineralized zones have been discovered and the new data has expanded the resource and indicates potential for greater than 2 million ounces of gold. Feasibility studies will commence later this year.
 "The progress reports we are receiving at El Indio, Tambo, Nev., and Red Mountain indicate that we are well positioned to significantly increase our gold reserves from exploration over the next few years," said Peter A. Allen, Lac Minerals' chief executive officer. "As a result, we are stepping up both our level of activity and our capital expenditures in order to maximize our opportunities for in-house gold reserve growth. At El Indio and Tambo alone, we expect to spend approximately US$5 million a year in a multi-year exploration program, with drilling to commence immediately."
 "This exploration effort goes arm-in-arm with our new business development activities to form strategic partnerships and acquire additional long-life, low-cost, world class mineral deposits," he added. On Tuesday Lac announced it and Cyprus Minerals Company submitted a joint bid for the El Abra copper project in Chile. "Our new organizational structure will also allow us to take fullest advantage of our promising gold reserves," Mr. Allen said. "We will have the people and the systems in place to be fully responsive to growth opportunities as well as to maximize the exploration potential of existing properties."
 El Indio
 Based on a recent comprehensive re-evaluation, El Indio, 300 miles north of Santiago, Chile, is Lac's most exciting opportunity for potential gold reserve growth. As a result, the company is embarking on an aggressive program of exploration.
 In July of this year, Lac retained MRDI, an independent consulting firm based in San Francisco, to compile and evaluate all historical exploration data at the El Indio mine. The firm, which has carried out studies of this scope and nature elsewhere in the world, was also asked to design an exploration program to evaluate and define areas of additional reserve potential. Lac's goal was to capture, in a few months' time, a fresh picture of the El Indio resource base in order to redirect and expand exploration activities from a program focused on reserve replacement and definition drilling to one dedicated to new ore exploration and production.
 "While we had suspected the presence of additional ore, we are very pleased that several major new targets close to the existing mining area have been identified," said Mike Richings, president of Lac's South American activities. "Two target zones are particularly promising because of their potential size." The first zone is characterized by geophysical anomalies of similar magnitude and properties to those exhibited by the main El Indio/Viento vein systems. The second target was identified after detailed structural analysis and has the potential for high grade gold El Indio vein mineralization down dip of the currently defined ore zones. Drilling to determine the potential of these and other prospective zones will commence immediately.
 Tambo
 The previously announced resource estimate is being upgraded to a preliminary mineable reserve of 19.7 million tons grading 0.055 ounces per ton or approximately 1.1 million ounces of gold. The expansion feasibility study underway at Tambo for the past several months examines the potential of a 150,000 ounce gold operation which is an increase of 100,000 ounces over current production levels. By year-end, the study will determine the economic and technical feasibility of building a 6,000 TPD agitation leach mill and a 10,000 TPD heap leach facility at Tambo to accommodate the significantly higher level of production. If the feasibility study concludes favorably, Lac expects to approve the new project for development immediately.
 In addition Lac's exploration staff has recently identified a number of untested and undrilled prospects in the Tambo vicinity which will be tested by drilling in the upcoming summer season.
 El Nevada
 On the Nevada project, 30 miles north of Lac's El Indio Mine in Chile, the company has calculated a preliminary geological resource estimate of 34.4 million tons grading 0.077 ounce gold per ton containing 2.7 million ounces of gold. The resource estimate was calculated using a 0.03 ounce per ton cutoff and covers an area of 2,000 feet by 650 feet in the central and eastern Esperanza blocks. An area of influence of up to 165 feet to the nearest sample was used to establish the global resource estimate, which can be classified as indicated and inferred. Currently, preliminary studies are underway to examine mining and processing alternatives and the various areas of infrastructure required. The economic impact of these studies will influence the ultimate feasibility and design of the project.
 Drill results of the last five holes of the 1992 - 1993 program are included. Drill hole RDH-60 tested the eastern block returning anomalous gold values at the contact between the pumice tuff horizon and quartz porphyry. RDH-61, designed to test the eastern edge of the central Esperanza block, did not reach its target due to technical difficulties. Holes RDH-62 and 64 were drilled into the central Esperanza Zone for better resource estimation. Drill hole RDH-63, one of two holes planned for the Tres Quebradas target 2,600 feet to the southwest of the central Esperanza block, successfully cut the pumice tuff horizon and the Palaeozoic basement contact. Although only very low gold values were encountered in the hole, strong alteration was observed indicating that the hydrothermal system is still present.
 The 1993-94 exploration program is planned to commence in September and will consist of 100,000 feet of drilling. The program is designed to test the Tres Quebradas, Brecha Oeste, Nevada Norte and Diatrema de Pascua areas with wide spaced reconnaissance drilling and detailed infill drilling on the central Esperanza block. A project office has been opened in Vallenar, 115 miles north of La Serena and 75 miles west of the project site, to provide local support services to the project.
 Red Mountain
 Considerable progress has been made on exploration and evaluation activities at Red Mountain, 10 miles east of Stewart, British Columbia, with the discovery of two new mineralized zones leading to Lac's decision to double the surface drill program. The 1993 exploration program has expanded the geological resource and indicates the potential for the delineation of greater than 2 million ounces of gold.
 The new mineralized zones were identified by surface drilling. They are the JW Zone, located below the AV Zone, and the 141 Zone, located southwest of the Marc Zone. Drilling is continuing to better define the 141 Zone, which was first encountered two weeks ago. Gold grades and widths in these new zones are consistent with those already encountered in the Marc and AV Zones. Due to these encouraging results Lac has expanded the scope of the 1993 surface exploration program to 100,000 feet from 50,000 feet. During 1993, a total of 2,800 feet of underground development and 20,000 feet of underground drilling is planned on the Marc Zone. To date 1,800 feet of the underground program has been completed, including 1,300 feet of decline and related work and 500 feet of crosscuts through the Marc Zone. The 1100N crosscut is complete, and the 1200N is now in mineralization. The final crosscut, 1295N, has commenced. An extensive sampling program is underway, incorporating chip, channel, panel and muck samples from the crosscuts. The crosscut rounds will be processed through a crushing plant and sampling tower to evaluate the drill-indicated grades.
 Additional work on the metallurgical, engineering and environmental aspects of the project is continuing, to support the initiation of a feasibility study later this year. Public overviews of the project will be presented in New Aiyansh and Stewart later this month.
 The current phase of work is expected to be completed by the end of October and a new gold resource estimate will be calculated by year-end. Expenditures are expected to total approximately US$7.0 million this season.
 1993 NEVADA PROJECT DRILL RESULTS
 Hole No. From To Length Gold Silver
 (ft) (ft) (ft) (opt) (opt)
 RDH-57 A 321 449 128 0.055 2.33
 includes 325 338 13 0.114 1.28
 and 354 357 3 0.166 1.87
 and 384 407 23 0.082 2.45
 and 413 416 3 0.131 4.41
 RDH-57A 449 475 26 0.015 0.35
 RDH-57A 495 528 33 0.032 0.15
 RDH-57A 551 571 20 0.026 0.06
 RDH-60 377 403 26 0.009 0.20
 RDH-60 518 541 23 0.012 0.15
 RDH-60 555 581 26 0.009 0.20
 RDH-62 0 59 59 0.155 0.64
 includes 0 20 20 0.242 0.64
 and 29 49 20 0.183 0.73
 RDH-62 59 151 92 0.012 0.50
 includes 112 125 13 0.020 0.61
 RDH-62 266 279 13 0.015 0.41
 RDH-62 308 325 17 0.015 0.55
 RDH-62 371 377 6 0.018 0.29
 RDH-63 NO SIGNIFICANT ASSAYS
 RDH-64 0 59 59 0.055 2.19
 includes 13 23 10 0.166 2.51
 RDH-64 75 98 23 0.020 1.02
 RDH-64 98 118 20 0.181 2.65
 RDH-64 118 157 39 0.023 0.35
 RDH-64 177 216 39 0.032 0.70
 includes 210 213 3 0.093 0.93
 RDH-65 NO SIGNIFICANT ASSAYS
 NOTE: Intervals preceded by a hole number are composited at a 0.01 ounce per ton (opt) gold cutoff, all others at 0.027 opt gold cutoff.
 -0- 9/24/93
 /CONTACT: John W. Pearson, manager, investor relations of Lac Minerals Ltd., 416-777-2379/
 (LAC)


CO: Lac Minerals Ltd. ST: Ontario IN: MNG SU:

TS -- NY013 -- 5258 09/24/93 07:30 EDT
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