LionOre Reports New Nickel Discovery by Jubilee Gold Mines NL.

TORONTO--(BUSINESS WIRE)--Sept. 3, 1997--LionOre Mining Inter (TSE LIM.) LionOre Mining International Ltd. ("LionOre") is pleased to report that Jubilee Gold Mines NL ("Jubilee"), a public company listed on the Australian Stock Exchange, in which LionOre is the largest single shareholder with a 23 percent holding on a fully diluted basis, has announced on September 1, 1997 a major new high grade nickel discovery (diamond drill intersection of massive and disseminated sulphides at 9.15m width from 125m depth). It is located at Jubilee's 100 percent owned Cosmos Nickel Project in proximity to the large Mt. Keith nickel mine (operated by Western Mining Corporation) north of Leinster, Western Australia.

Yesterday, Jubilee announced its second diamond drill hold (JCD 002), 40 metres to the south of the discovery hold (JCD 001), and intersected two zones of massive sulphides. Assay results are expected from JCD 002 later this week. -0-

Drill Hole    From Depth   Down/Hole Width     Ni
             (metres)         (metres)        Percent

JCD 001       129.5            3.02             7.54
            including:         1.20            12.10
                               0.63            10.50

JCD 002       116.0            2.40          massive sulphides
              124.4           19.10          massive sulphides

A full copy of Jubilee's media release issued on September 1, 1997 follows. Jubilee has 99.0 million shares on issue.

Mr. Gil Playford, President and CEO of LionOre commented: "One of LionOre's strategic goals is to increase our current nickel production from 2500 tonnes/year to 15,000-20,000 tonnes/year at an operating cash cost of $1.50/lb. Our growing nickel resource, currently 191,174 tonnes of contained nickel from Maggie Hays, and Emily Ann in Lake Johnston, Western Australia, and Tati Nickel in Botswana will now be further enhanced by this exciting new discovery at the Cosmos Nickel Project."

LionOre is an international mining company headquartered in Toronto, Ontario, Canada and trades on The Toronto Stock Exchange under the stock symbol "LIM".

MEDIA RELEASE JUBILEE GOLD MINES NL

Jubilee Gold Mines NL has made a major nickel discovery at its 100 percent owned Cosmos Nickel Project south of Mt. Keith near Leinster in Western Australia.

The company's first diamond drill hole into Cosmos intersected massive and disseminated sulphides over 9.15 metres from 125m and returned 7.54 percent nickel over 3.02m from 129.53m, including 12.10 percent nickel over 1.20m and 10.50 percent nickel over 0.63m at the base of the ultramafic unit. Drilling is continuing.

The plus-10 percent nickel values of the massive sulphides are higher than any other massive sulphide deposit in the world class Mt. Keith ultramafic belt, indicating the real potential for high grade recoveries at relatively low capital costs.

"This is a very important discovery," Jubilee Managing Director Kerry Harmanis said today. "The style of this mineralisation provides confidence the continuing drilling programme will produce further high grade massive sulphides and that this discovery will ultimately be mined."

The Cosmos Project area, within Jubilee's Kathleen Valley gold/base metals project, contains 15km of largely untested ultramafic stratigraphy highly prospective for nickel sulphides. It stretches from the Galaxy area, formerly known as Five Creeks, 1km south of Dominion's Serp Hill deposit, to the Cosmos discovery in the south of the project area.

The Cosmos mineralisation itself occurs within a very strong 400m long coincident geochemical and electromagnetic anomaly, and dips to the east at about 75 degrees. It surfaces as a gossan with sulphides beginning at about 50m below surface.

Besides the Cosmos discovery, a number of other strong geophysical and geochemical targets have been identified, and exploration on these is continuing.

Source: Announcement to the Australian Stock Exchange

For further information contact Kerry Harmanis, Managing Director, Tony Rovira, General Manager-Exploration, on 08 9481 5330 or Mark Mentiplay of Corporate Strategy on 08 9756 8547 or 041 795 7372.

September 1, 1997

CONTACT: LionOre Mining International Ltd.

Mr. Ted Mayers, 416/777-1670

or

LionOre Mining International Ltd.

Mr. Gil Playford, 416/777-1098