Opawica Explorations Inc. Announces Entry into Option Agreement.

TORONTO--(BUSINESS WIRE)--June 17, 1996--OPAWICA EXPLORATIONS(TSE: OPW) Opawica Explorations Inc. (the "Company"/"Opawica") announces that it has entered into an option agreement to acquire five properties totalling 21,000 Hectares, on the El Indio gold belt in Argentina, South America.

The Company may earn up to a 100 percent interest in the five properties, subject to a 20 percent net profits interest, by making cash payments of US $500,000 over the next four years.

The five Opawica properties are located near or contiguous to land holdings being explored by Barrick Gold Corporation, Argentina Gold Corp. and Western Mining on the El Indio gold belt. The main target in this region of the belt is low to high sulphidation and porphyry type epithermal systems. Opawica's five properties are accessible by four wheel drive and have a seven month summer field season. Opawica plans to conduct mapping, surveying and surface sampling commencing in October, 1996.

In addition, the Company has optioned the 38 claim Matarrow Mine property located in the Matachewan gold-base metal camp of northeastern Ontario. The Company can acquire 100 percent of the property, subject to a 2 percent net smelter return royalty, for $50,000 cash and by expending $300,000 in exploration within the next three years.

The Matarrow Mine produced approximately 40,000 tons of 6.13 percent combined lead-zinc head grade. The main iron formation associated with the mine is almost 2 km in length and only about 200 meters of this strike length has been drill tested, all in the vicinity of the mine. There is also known gold occurrences associated with the iron formation at its southwestern end. Substantially all previous surface and underground exploration did not target or assay for gold mineralization.

Companies active in the region of the Matarrow Mine are, Royal Oak, Cameco, Outokumpu and Inmet Mining. Royal Oak Mines Inc. have identified a resource of approximately 1.3 million ounces gold on a large claim block contiguous to the northern boundary of Opawica's Matarrow mine property. Opawica plans to immediately initiate at least a five hole drill program on the property to test below the historic ore bearing portions of the structure as well as drill a series of shallow holes along strike. Multi-element analysis and gold assaying will be conducted on selected core samples from all holes.

The above noted acquisitions are subject to regulatory filing and acceptance.

The Company also announces that the March 8, 1996 letter of intent with Pulmari Corporation, concerning the Company acquiring 100 percent of the 106,000 Ha Pulmari Mineral Reserve (Pulmari), Argentina, has expired. Following Opawica's recent implementation of the terms and consideration of the letter of intent into a Pulmari Corporation standard exploration/exploitation agreement. Opawica has been advised by Pulmari Corporation that the crown corporation is not prepared to execute the agreement, and instead is requesting a material change to the consideration to be paid by Opawica.

It is the Company's position that the Pulmari property, as a grass roots exploration prospect, is not reasonably worth the increase in consideration being sought by Pulmari Corporation and its officers. The Company will not expend any further time or funds to acquire Pulmari at this time. The Company has been advised that the Pulmari Mineral Reserve, under Federal Argentine legislation, shall be open for staking in the near future and the Company may attempt to acquire Pulmari when the Federal process is implemented.

Finally, the Company has continued with a further 200 rotary air blast holes on the Asankrangwa license in Ghana, West Africa, and are advised that results are scheduled to be available by the week of July, 1996.

CONTACT: Opawica Explorations Inc.

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

416/596-1479 (Fax)