Mandorin Goldfields - Indonesia and Zimbabwe Activity Update.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Sept. 17, 1996-- Mr. Arn Schoch, President of Mandorin Goldfields Inc. (VSE:MGD) reports on the ongoing activities of the company's mineral properties held in Indonesia and Zimbabwe.

INDONESIA

On September 6, 1996, the company presented the results of a feasibility study to the Ministry of Mines in Jakarta. This report, which documents the commercial feasibility of bringing the Sungai Raya alluvial gold resource into production during 1997, was accepted and the company now plans to move forward into the Construction Stage of the ("C.O.W."). The potential to expand known reserves on the Sungai Raya deposit with further exploration is considered to be excellent. In addition, the Government of Indonesia has granted to the company a two year extension on the Mandor Block of the C.O.W. This will allow sufficient time for the company to assess the economic potential of the porphyry system that has been identified on the property by the recently completed 2,000 meter diamond drill program.

Sungai Raya Block

The in-house feasibility study recently completed, and referred to above, revised the mining plan on the Sungai Raya Block. A total resource of contained gold has been calculated to be 469,000 oz. The current mine plan will exploit a mining reserve comprised of the contiguous, higher grade sections of the property. Over the life of the mine, the operation is expected to produce 181,000 oz. gold. The company is confident that, with further exploration in known anomalous areas, the overall mining reserve of the property can be upgraded.

Diamond drilling on the Sungai Raya Block has been completed. Three shallow (less than 60 metre) holes were drilled to define any gold mineralization potentially associated with a chalcopyrite occurrence that was identified in bedrock at the termination of a banka drill hole. This banka hole was drilled during a previous program that identified the alluvial resource. Further work will be necessary to fully define the source of the gold on the Sungai Raya Block,

Mandor Block

The Phase I diamond drilling program on the property has now been completed. Geochemical/assay results of core samples from the six holes drilled on the German Workings are pending. In addition the results of the airborne geophysical survey, completed by Aerodat Inc., over both the Mandor Block and the Sungai Raya Block are expected shortly. Exploration results will be released following receipt of all currently outstanding data.

A geological consulting firm has been contracted by the company to conduct an independent evaluation of all the data compiled during the recent exploration program. The results of this evaluation will direct the company's focus for the Phase II exploration program on the Mandor and Sungai Raya Blocks.

ZIMBABWE

The Company has recently completed an initial assessment of its 3 Exclusive Prospecting Orders (E.P.O.s) and 18 diamond mineral properties located throughout Zimbabwe. The results of this initial evaluation were extremely favourable resulting in a strong recommendation to accelerate exploration within Zimbabwe.

The most prospective gold project is in the Tafuna Hill area, situated immediately adjacent to Ashanti Goldfields Co. Ltd.'s Shamva Mine (formerly owned by Cluff Resources), Zimbabwe's largest gold producer. Historically, on the Tafuna Hill area properties, 239,000 oz (7,437 kg) of gold have been produced by limited, small scale mining operations. The weighted average grade of mining operations from ten past producers on Tafuna Hill is 16.2 g/t Au. Grades range from a low of 4.8 g/t at the Joking West Property which produced 335.1 kg Au to a high of 38.8 g/t at the Joker Property which yielded 919.8 kg. Au.

The company is preparing an aggressive exploration program to explore the potential to identify additional surface discoveries and to evaluate known, but currently untested, high grade gold-bearing structures at depth. This will involve an exploration program comprised of geological mapping, geophysical surveys, stripping, trenching, and a large diamond drill program.

In southern Zimbabwe, the company holds strategic diamond claims proximal to the producing River Ranch diamondiferous kimberlite, a joint venture project of Redaurum Ltd. and Auridiam Consolidated NL. On these diamond properties very cursory exploration, consisting of limited surface trenching, has identified diamond mineralization.

Subsequent to the recently completed (CAN)$2.5 million financing, the company is well funded to continue the exploration and development of the Indonesian assets, to commence this major exploration program in Zimbabwe and to continue to pursue additional significant acquisitions.

-0-

NOTE TO EDITORS: The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release.

CONTACT: Mandorin Goldfields Inc.

Arn Schoch, [phone]

1-800-792-0298 (U.S. & Canada)

Internet: www.mandorin.com

E-Mail: [e-mail]