Lone Star Exploration NL - Investor Briefing.

VANCOUVER, British Columbia--(BUSINESS WIRE)--May 24, 1996--LONE STAR EXPLORATION (VSE: LSE) This is the first of our regular Investor Briefings which will keep you up to date with the progress of Lone Star's Awak Mas Project in South Sulawesi and inform you of Lone Star's corporate activities.

Each Briefing will also provide some background information about the Awak Mas Project.

AWAK MAS

The Awak Mas Project is located in the South Sulawesi province on the Indonesian Island of Sulawesi (see map on Page 2). Access to the Project site is via 40 kilometres of unsealed road off the main sealed road between the provincial capital of Ujung Pandang to the south and Palopo to the north. Driving time from Ujung Pandang and the base camp is about 7 hours. Regular jet services link Ujung Pandang with Jakarta and several other Indonesian cities.

This part of the world typically experiences heavy rainfall and the last few weeks have been no exception. On the 26th April the Awak Mas camp recorded nearly 180 mm of rain in 24 hours.

THE JOINT VENTURE

Lone Star's principal joint venture partner in the Awak Mas Project is Gasgoyne Gold Mines. The major shareholders in Gasgoyne are Sons of Gwalia with 62 percent and Coeur d'Alene with 35 percent. This is seen by Lone Star as very positive because of the wealth of Australian and North American mining experience that will be available to the Joint Venture.

DRILLING

Lone Star's exploration at Awak Mas has been underway for 3 years and to date only 70 percent of the gold in soil anomaly has been drilled. A deep drilling programme has commenced which will see 4 holes over 400 metres drilled into a potential feeder source to the ore body. Results will be available within the next few months and the target area looks promising as it is believed to be one of a number of hydrothermal conduits to the main ore body.

As part of our commitment to increase the Awak Mas drilling programme from 22,000 metres to over 30,000 metres by September 1996, we now have four drill rigs on site. In the last two weeks they have drilled in the Tanjung and Lematik Domains and the results continue to be encouraging.

THE TEAM

From time to time we will introduce senior personnel associated with Lone Star and the Awak Mas Project.

David Bennett is the Site Manager at Awak Mas. He is a geologist with over 20 years' experience, much of it gained establishing and supervising a team of expatriate and local geologists on exploration programmes in Indonesia. He is also a fluent speaker of Indonesian.

CORPORATE ACTIVITY

Following the listing of Lone Star on the Vancouver Stock Exchange and the successful placement which took place in Canada in March, Lone Star has been working towards a number of financial goals.

For Lone Star to access 50 percent of the placement funds a number of conditions must be met. These include:

1. Shareholder approval for an increase in the authorised capital of Lone Star. This issue will be on the agenda at the forthcoming Extraordinary General Meeting on 31 May, 1996.

2. Agreement from Aquarius Exploration not to sell its stake in Lone Star until production has commenced at the Awak Mas Project.

3. Legal advice that Lone Star will gain control over production and development management at Awak Mas if control of Gasgoyne Gold Mines changes.

We are also working towards lodging the final prospectus by the end of June. Once the prospectus has been received by the Canadian authorities (and the above conditions have been met), Lone Star will gain access to the remaining 50 percent of the placement funds.

NEXT ISSUE

In the next Investor Briefing we will outline the objectives of the extended drilling programme and some of our future exploration plans.

NOTE: Location map available from the Company at the phone number listed below.

CONTACT: Martyn Element & Associates

Robert Matthews, 604/687-6820

604/687-6328 (Fax)