Naneco Has Entered Into A Joint Exploration And Development Cooperation Contract At The Errentouligai Gold- Silver Deposit Project, Located In Inner Mongolia, China.

Business Editors

CALGARY, Alberta--(BUSINESS WIRE)--Oct. 24, 2000

Naneco Minerals Ltd.(CDNX:NNE.) wishes to announce that the company has entered into a joint Exploration and Development Cooperation Contract with the China Inner Mongolia Sixth Geological, Mining and Development Institute (Geologic Team 116) and China Inner Mongolia Hulunbeier League Non-Ferrous Metal General Corporation to expand exploration and development at the Errentouligai gold- silver deposit project, and its surrounding area, located in Hulunbeier League, Inner Mongolia, Peoples Republic Of China.

Under the terms of the Agreement, Naneco will provide the capitol required for further exploration and development of the Errentouligai deposit and will be the managing partner in this endeavor. Geologic Team 116 will acquire the necessary permits, assist in conducting supplementary exploration and supply all of the data they developed previously. Their interest in the project will be determined by comparing their total, appraised, prior investment in the project to the total actual investment made by Naneco to further explore and develop the mine. Should Geologic Team 116's share be determined to be less than 5%, their share will be carried at a 5% Net Profits Interest. Hulunbeier Non-Ferrous will be responsible for managing relations between the parties and the local government and departments in charge of geological and mineral matters. For their participation, they will retain a 2% to 5% Net Profits Interest based on the following investment schedule:

Total Investment in the Project        Hulunbeier Non-Ferrous
By Naneco and Team 116                 Net Profit Interest (%)
    (in $US 0,000)
      [less than] 300                                   5
        300-450                                   4
        450-600                                   3
       [greater than]600                                   2

Naneco has been active in China since 1997, and now holds a majority interest in Hulunbeier Jiawula Mining Company, which is currently engaged in the development of the Jiawula #2 Vein Deposit, a high grade lead-zinc-silver-copper deposit also located in Hulunbeier League. The company maintains a well staffed office at Manzhouli, a reasonable distance from the Project, and is, therefore, capable of supplying all of the management, geological and engineering support required for both the Errentouligai and Jiawula Projects.

The Errentouligai district is located approximately 45 Kilometers southeast of the Jiawula district. Both deposits are situated on and along the Debur deep fracture zone, a structure which marks the geologic boundary between crystalline rocks to the west and the Hailar basin to the east. Although this trend is only sparsely explored to date, it is known to host both drill-defined and undeveloped drill-defined resources, of base and precious metals, with substantial magnitude. The Naneco property acquisition, exploration and development programs are designed to exploit the potential of the Jiawula-Errentouligai trend through the application of proven strategies. Their early operating presence in China, well in advance of competition, provides a distinct advantage in this regard. Several other property submittals are being reviewed at the present time, some of which appear to have similar, exceptional potential.

Prior work completed at Errentouligai includes routine geochemical and geophysical investigations, followed by several thousand meters of trenching and the drilling of approximately 100 core holes. As a result of this work Geologic Team 116 reports to have outlined a large drill-defined resource of silver and gold occurring in an epithermal vein system which is exposed over an area 1 Kilometer wide by 4 Kilometers long.

Based on initial site investigations and review of a portion of the data supplied by Geologic Team 116, Naneco believes that significant additional potential exists at the property as it is evident that much of the deposit remains untested. At the present time, additional data from previous work by Geologic Team 116 is being acquired, compiled and reviewed. This will include metallurgical studies which reportedly yielded very favorable results. From this information, Naneco will plan confirmation work and an extensive exploration program with the emphasis on drilling. Implementation of the initial field work is scheduled for the third week in October, 2000.

The data, provided by Team 116, shows significant drill intercepts which range from narrow (0.5 to 0.75m) widths containing silver grades as high as 6,000.00 g/mt or more to mineable widths from 2m grading 3,295 g/mt Ag and 5.5 g/mt Au to 7.5m grading 448.4 g/mt Ag and 0.74g/mt Au and composite intercepts up to 91.1m grading 197.67 g/mt Ag and 0.45 g/mt Au. Examples of some significant trench intercepts are as follows:

                                            Weighted Average
 Interval (m)        Length (m )         Ag (g/mt)    Au (g/mt)

  25.2 - 35.4            9.6                766.9        1.14
   0.8 - 10.6            9.8              1,041.1        9.36
  11.3 - 26.6           15.3                563.1        1.06
  16.4 - 22.8            6.4              1,017.0        2.03
   0.0 - 44.5           44.5                288.0        0.55
    0.8 - 4.6            3.8              2,497.7       22.64

Additional specific information regarding the Errentouligai Project will be forthcoming as new data is received and exploration planning is completed.

The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

NANECO MINERALS LTD. (ALBERTA - "NNE")

Suite 2005, 355 - 4th Avenue S.W.

Calgary, Alberta T2P 0J1

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