Opawica Explorations Inc. - Company Update.

TORONTO--(BUSINESS WIRE)--Jan. 29, 1997--Opawica Explorations Inc. (TSE:OPW.) (the "Company"/"Opawica") announces that the Company has reviewed in detail the current location of the Golden Rule Resources Ltd./Hixon Gold Resources Inc. Stenpad property location and the significant surface gold anomalies reported from Stenpad, Ghana, as they relate to Opawicas property holdings.

Opawica has determined that it is clearly evident that the gold bearing system on the Stenpad property continues, at least in part, onto the northwest area of Opawicas Totua Prospecting License (aka Asankrangwa).

The entire surface gold anomaly on Stenpad appears to be about 4 km by 5 km and is wide open to the south onto Opawicas ground. In addition, it is apparent that a 1.5 km by 500 meter surface anomaly on the Stenpad property, averaging 10 g/t Au, adjoins Opawicas northern boundary.

This mineralized trend has been identified by surface geochemical soil sampling on Opawicas Totua license during late 1996 and is referred to as the Nkran Hill Zone(NHZ). The NHZ, on Opawicas Totua license, is associated with a geochemical soil anomaly of 7 km by 100 meters to 2.5 km wide and has been outlined with values ranging from 35 ppb and up to 29 g/t Au in soils.

Also on Totua, is a second surface geochemical soil anomaly located 3 km east and sub-parallel to the above NHZ. This second feature is associated with the Asankrangwa Gold Belt and is 9 km in length by 100 meters to 2.5 km wide.

Surface geochemical soil sampling from this zone, in 1996, yielded values of 35 ppb and up to 35 g/t Au. Shallow geochemical drilling yielded values of 35 ppb and up to 35 g/t over 10 meters to 2 meters, respectively, in July of 1996.

Effective Dec. 30, 1994 Opawica entered into an option agreement with Golden Shamrock Mines Ltd. (GSML) whereby GSML may earn a 60 percent interest in the 135 sq km Totua license and the six Enchi-Wiawso prospecting licenses of 900 sq km by spending US $3 million on Opawicas licenses prior to Oct. 20, 1999.

All of said licenses have been approved by the Ghana Minerals Commission in the name of Opawica Ghana Gold Ltd., which is 90 percent owned and controlled by Opawica Explorations Inc. and 10 percent by the Government of Ghana. In addition, as at November 7, 1996 GSML, by way of a merger, became a wholly owned subsidiary of Ashanti Goldfields Company Ltd. (AGC) (NYSE-TSE-LSE).

Opawica and AGC/GSML are currently in a dispute as to whether AGC/GSML has lost its right and option to earn a 60 percent interest in Opawicas Totua and Enchi-Wiawso licenses as well as AGC/GSML's right to manage projects involving these properties. To enable the parties to resolve such disputes in a reasonable period of time the option agreement provides for an arbitration process in the Province of Ontario, Canada.

Opawica will refer the dispute to arbitration unless this matter is immediately resolved to Opawica's satisfaction. In the meantime, Opawica will immediately, 100 percent to its own account, proceed as operator of an exploration program consisting of US $400,000 on the Totua license.

A further US$100,000 will be expended on the six Enchi-Wiawso prospecting licenses, scheduled to commence in March, 1997, where a 15 km by 3 km geochemical gold in soil anomaly was identified during the 1996 field season. The Enchi-Wiawso license is located on the Bibiani Gold Belt, Ghana, which is approximately 25 km west of the Totua license.

On the Totua license a surface sampling program of 500 samples of 2 kg each from the B soil horizon, with the entire sample utilized for the fire assay of a 30 g sample will be carried out.

In addition, Follow up trenching and trench sampling consisting of 2,000 meters of trenching to an average depth of 4 meters has been outlined. Ground geophysics and a follow up reverse circulation drilling program of at least 2000 meters is planned.

The surface sampling is scheduled to mobilize on or about Feb. 10, 1997 and is targeted to pick up the 1.5 km by 500 meter, 10 g/t Au, surface anomaly located at the Totua-Stenpad property boundary. The entire surface program will be conducted over an area in the northwest quadrant of Opawica's Totua license of 4 km by 3 km.

Finally, the Company reports that as a result of the exercise of certain outstanding warrants and stock options that Opawica now has working capital of about Cdn $ 3,000,000. As outlined above, US$500,000 will be applied to the Company's Ghanaian properties and up to US $600,000 will be applied to Opawica's Argentina properties during 1997.

Opawica has now secured 8 gold-base metal properties along the El Indio Gold Belt and in Northwestern Argentina. The most advanced property is Opawica's 100 percent owned Castano holding where widespread low and high grade gold, silver, copper, lead and zinc mineralization was detected during the 1996 field season.

The Castano property has, between 1870 to 1968, produced approximately 200,000 ozs. Au, 2 million ozs. Ag, 16 million lbs. Cu, 90 million lbs. Pb and 150 million lbs. of Zn in concentrates from narrow high grade vein systems to an average depth of 100 meters.

CONTACT: Opawica Explorations Inc.

D.M.R. (Dan) Clark, 416/597-1480 or

Chris Robertson, 416/597-1480