Mesquite Resources Inc. Announces Proposed Private Placement.

CALGARY, Alberta--(BUSINESS WIRE)--Nov. 4, 1997--Mesquite Resources Inc. (ASE:MQT) announces its intention to raise $1.235 million through a private placement of 1,900,000 Flow-Through Special Warrants at a price of $0.65 per Flow-Through Special Warrant. Each Flow-Through Special Warrant is exercisable for one Unit comprised of two Common Shares of Mesquite, to be issued on a flow-through basis, and one Warrant to be issued on a non-flow-through basis. The Warrant entitles the holder to acquire one Common Share of Mesquite at a price of $0.40 for a period of one year following the issuance of the Flow-Through Special Warrants.

Mesquite has retained Canaccord Capital Corporation as its agent to assist it in selling the Flow-Through Special Warrants on a reasonable commercial efforts basis. As consideration for such services, Canaccord will receive a commission based on the gross proceeds realized by Mesquite from sales of the Flow-Through Special Warrants and will receive up to 475,000 Agent's Special Warrants. Each Agent's Special Warrant will entitle Canaccord to receive, for no additional consideration, one non-transferable share purchase warrant to acquire one Common Share of Mesquite at a price of $0.40 per share for a period of 12 months from the date of issuance of the Flow-Through Special Warrants.

Closing of the proposed private placement is subject to regulatory approval. An initial closing is expected to occur on November 28, 1997, with additional closings to occur at such later dates until the earlier of the date on which all of the Flow-Through Special Warrants have been sold and December 31, 1997.

Mesquite currently has 10,243,921 Common Shares outstanding. An aggregate of 6,175,000 Common Shares of Mesquite will be issued if all of the Flow-Through Special Warrants, the Warrants and the Agent's Special Warrants are exercised.

The proceeds from the private placement will be used to incur expenditures which will qualify as Canadian Exploration Expense and Canadian Development Expense in an amount not less than the aggregate subscription amount, for renunciation to the holders of the Common Shares issued on a flow-through basis.

Mesquite Resources Inc. is a Calgary-based company engaged in the acquisition, exploration and development of oil and gas properties in western Canada. -0-

Note to Editors: The Alberta Stock Exchange has neither approved nor disapproved the information contained herein.

CONTACT: Mesquite Resources Inc.

Scott St. John, 403/269-8924

403/269-8947 (FAX)

or

Mesquite Resources Inc.

Steve Takacs, 403/269-8924

403/269-8947 (FAX)