Naxos Resources Ltd. Announces AGM in Vancouver on June 5 followed by Special Meeting in Las Vegas; Site Inspection on June 15.

Business Editors

SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)--May 25, 2001

Annual Meeting in Vancouver; Follow-Up Meeting in Las Vegas

The Annual General Meeting of Shareholders, required by law to be held in Canada, will be held in Vancouver, B.C., on Tuesday, June 5, 2001, at 10 a.m.

A follow-up meeting will be held at the Stardust Hotel in Las Vegas, NV, on Friday, June 15, 2001, at 10 a.m.

For those who wish to attend, we will arrange a visit to the Naxos pilot plant at Death Valley Junction, CA, on the Saturday after the meeting.

Contact the Naxos website or its office in South San Francisco for details and hotel rates.

2001 Message to Shareholders

Naxos Resources Ltd. (OTCBB: NAXOF), an exploratory stage mining company, announces that Father Gregory Ofiesh, President and CEO, has prepared his 2001 Message to Shareholders to review the accomplishments of the past year and to discuss the current situation and the outlook for the future. The following is the text of the message he proposes to deliver at the Annual General Meeting of Shareholders in Vancouver, B.C., on June 5, 2001.

As many of you, I have been involved with Naxos since 1992. It seems as if we all believed in the same idea, in layman's language, "Precious metals can be extracted from desert dirt." Over a period of 13 years, Naxos spent millions of dollars on studies and tests, and printed many beautiful brochures and reports -- but had nothing to show for it -- no production, no revenue. Was the concept wrong? Was it all a waste?

My friend, the late Fred Arkoosh, told me, "Father Gregory, Franklin Lake has the finest and best ore for the extraction of precious metals." He believed in the presence of those precious metals, but the Naxos process for extraction had to be further developed. I believed Fred and felt determined to go forward and prove the concept to myself.

It took a lengthy and costly proxy fight to gain control of the company. When we succeeded, we found things were worse than we anticipated. The company had lost credibility with its shareholders. As a result, despite a desperate need for cash, the company was able to find only two persons, other than myself, to invest in it.

Accomplishments and Current Position

In view of the difficulties we faced, I am proud of what we have achieved during the past year and the position we have attained:

1. We have paid off and/or negotiated settlements of all outstanding

obligations;

2. We are current in payments on all ongoing debts;

3. The austerity program instituted last year has proven successful;

without it Naxos might not still be in business;

4. The financial statements for the fiscal year ended October 31,

2000, have been completed, audited, and filed with the required

governmental agencies in Canada and the United States (they are

available on the company's web site);

5. The company's website (www.naxosfl.com) is now operational, and

provides current information on company activities;

6. The executive and administrative offices have been moved to South

San Francisco, CA, and are functioning smoothly and efficiently;

7. We have a technology and a team that, I believe, will allow Naxos

to move forward with its original and basic objective -- to

extract, process, and sell precious metals from the company's

properties in the desert.

Personal Vindication

Focusing on the last item in the list, I believe that Naxos has shown that its claims at Franklin Lake contain gold and the platinates and that it has developed a process for extracting them. This is not to say that we are home free. There is still much to be done and problems remain. But, I feel personally vindicated.

Our immediate hurdles are to scale-up the process from the laboratory to commercial production -- generally a difficult undertaking, and to raise additional capital -- an absolute necessity. I have personally invested approximately $300,000(US) in the company in the past year, but I cannot continue. If Naxos is to attain the potential we envision, $500,000 to $1,000,000(US) must be raised quickly. Once we raise the funds, the future looks bright. If we cannot, I will be able to walk away with pride, knowing I have done the right thing and feeling no sense of failure. It will hurt me, however, to see vultures come in and pick up our claims and leave Naxos and its shareholders out in the desert.

Potential Use of Funds

If Naxos is to proceed toward its objectives, we estimate that it will need funds during the next 12 months for the following:

                        ITEM                                AMOUNT
                     ----------                           ----------
                                                              US$

Costs and Expenses

    Mining operations: testing and production
     ($25,000 per month average, starting
     lower and increasing over the year)                    $300,000

    Professional fees (legal, accounting,
     environmental & mining consultants, etc.;
     $5,000 per month + $10,000)                              70,000

    Administrative (office staff, telephone,
     office supplies for South San Francisco,
     Death Valley Junction, the Farm;
     $6,000 per Month + $3000)                                75,000

    Lease payment to BLM (due August 31, 2001)                55,000

    Equipment for pilot plant                                 75,000

    Clean-up of laboratory sites (from years
     of inattention)                                          40,000
                                                          ----------
Subtotal                                                     615,000

    Reserve                                                  135,000
                                                          ----------
Total                                                       $750,000

We can proceed with amounts somewhat less than those detailed above, but we think these amounts give us a good chance of success. With more than these amounts, we think our chance of success would improve and we would be able to move at a faster pace.

Financial Situation

Naxos has a history of raising funds through both public and private offerings of securities. From a review of these past transactions and consultations with people experienced in the field, the Company hopes to be able to determine if an offering of its securities would be appropriate in the current environment, and, if so, the terms and conditions upon which such an offer might be acceptable.

Conclusion

Before concluding, I want to express my personal gratitude to the many shareholders who have remained loyal to Naxos during recent years -- and especially to those who have called or written me to express their appreciation for the progress we have made and their confidence in what we are doing. As I said above, I feel great pride in our accomplishments, but I am also humbled by the challenges that still lie ahead.

Sincerely, Father Gregory Ofiesh President and CEO

NOTHING IN THIS MESSAGE SHOULD BE DEEMED TO BE AN OFFERING OF SECURITIES. ANY OFFERING OF SECURITIES THAT MAY BE MADE, WILL BE MADE ONLY IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS AND REGULATIONS.

NOTE: SAFE HARBOR STATEMENT -- Except for historical information contained herein, the statements in this news release are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the company's actual results to differ from forecasted results. These risks and uncertainties include, among others, risks inherent in the company's mining operations and specifically in increasing the scale of operations from testing to production, the difficulty of finding refiners to process the company's ore, the uncertainty of reserves in the company's properties, general domestic and international economic and financial conditions competition from larger and better capitalized, the possibility that costs may be higher than anticipated, volatility of prices, and weak product demand.

NAXOS RESOURCES LTD. 172 STARLITE STREET South San Francisco, CA 94080 TEL: [phone] FAX: [phone] Website: www.naxosfl.com e-mail: [e-mail]