New Concept Technologies signs agreement with Hereford Resources.

CALGARY, Alberta--(BUSINESS WIRE)--Oct. 16, 1995-- New Concept Technologies International Ltd. announced that an agreement for the acquisition of a 20% interest in Soco Tamtsag Mongolia Inc., outlined in the Company's announcement of September 29th, 1995 (the Agreement) had been signed between the Company and Hereford Resources Limited (the "Vendor").

Pursuant to the terms of the Agreement, which is conditional upon approval of certain matters by the Alberta Stock Exchange, the Company will acquire 20 percent of Soco Tamtsag. The total consideration is US$7,500,000 -- US$6,000,000 in cash and the US$1,000,000 by the issuance of 3,000,000 new shares of the Company. The 3,000,000 shares are to be issued at a deemed price of US$0.50 per share, with one warrant attached to each share. One warrant can be converted into one new share in the Company at the price of CDN$1.50 each, in cash.

This 20 percent equity interest in SOCO TAMTSAG will include a fully-funded (1,500 km) seismic program, two fully-funded 3,400 meter exploration wells and other operating costs up to the end of contract Year 2, viz. September 22, 1995. The Company will only contribute its proportionate cost from contract Year 3.

The Board of Directors had commissioned a consulting geologist & engineering firm to prepare a Geologist & Engineer's Report for the purpose of evaluating this acquisition. The consideration is arrived at arms length negotiations.

Soco Tamtsag is the 100 percent owner of two Oil & Gas Exploration and Production Sharing Contracts (Contracts) in the Tamtsag Basin, Eastern Mongolia. The total acreage of these two Contracts is approximately 5.4 million acres. Soco Tamtsag also has options for 70 percent and 80 percent for two additional areas in the Tamtsag Basin and these two optioned areas cover a further 5.4 million acres.

The shareholders of Soco Tamtsag are Soco International Inc. (49 percent); Command Performance (overseas) Pty. Ltd. (10 percent); Territorial Resources Inc. (1.0 percent) and the Vendor (20 percent).

Soco International Inc. is a wholly-owned subsidiary of Snyder Oil Corp., an independent oil & gas company whose shares are listed and traded on the New York Stock Exchange. Soco International Inc. is also the operator of the oil property in the Tamtsag Basin.

Command Petroleum is a wholly-owned subsidiary of Command Petroleum Holdings Ltd., an oil & gas exploration company whose shares are listed and traded on the Stock Exchanges of Australia.

Territorial Resources Inc. is a U.S.A. public company, whose shares are traded on the over-the-counter market.

Soco Tamtsag has a Crude Sales contract with China National United Oil Corporation (Chinaoil) whereby Chinaoil had agreed to purchase any crude produced in the Tamtsag Basin, at a mutually agreed point on the China-Mongolia border, at the average monthly Daqing crude spot oil prices as published daily in the Platt's Oilgram Price less US$2.00 per barrel for transportation fee. Chinaoil is a joint-venture established under the laws of the People's Republic of China (PRC) between China National Petroleum Corporation and SINOCHEM, which are both PRC state-owned entities. The Crude Sales contract with Chinaoil provides an attractive market for any crude discovered and produced. As China has become a net crude importer, Mongolia will be an important nearby supply source for China.

In December 1994, Soco Tamtsag had contracted with Chinaoil to drill two turn-key exploration wells to a pre-planned depth of 3,400 meters in the Tamtsag Basin. The first well, SOTAMO 19-1, was spudded in April 1995 and reached a depth of 3,000 meters in June 1995. The well confirmed the presence of hydrocarbon and structural seals in the Tamtsag Basin. However, the main reservoir sand interval encountered by a Russian team who drilled a well in the center of the basin in 1955, was faulted out in this well. New seismic data has increased the optimism for the second well which was spudded on August 28, 1995. The drilling of the second well is in progress and is expected to reach basement by end of October 1995.

The Company is presently applying to the Alberta Stock Exchange for their consent to issue the consideration shares and warrants and will submit a filing statement providing further details of the transaction, shortly. -0-

NOTE: The Alberta Stock Exchange has neither approved or disapproved the information contained herein.

CONTACT: John Paiuk, 604/276-9368

604/276-8403 (fax)

or

Sandy Uno, [phone]

[phone] (fax)