Orex Gold Mines Corp. Finalizing Stock Exchange Agreement For Arch Mining Company.

CORAL GABLES, Fla.--(BUSINESS WIRE)--Oct. 18, 1999--

Orex Gold Mines Corp. (OTC BB:ORXX) announced it has completed a binding Letter of Intent including a tax free stock exchange agreement for a privately held mining company, Arch Mining. The agreement is part of the ongoing efforts by Orex to evaluate and develop properties for the HGP technology and other mining strategies.

Under terms of the agreement, Orex will acquire all interests in Arch Mining Company. The company holds rights to the D&H property located in Central Arizona. The property consists of 10 unpatented BLM claims apexing a 40 foot thick gold-quartz vein structure that has been evaluated and mapped over 12,000 feet long and to 800 feet in depth. The Arizona Department of Mineral Resources has evaluated and concluded that the property has "District size potential". The oxidized vein material contains high-grade silica (+90% purity for mine run ) and gold values from .02 to 13 ounces per ton. The property has several shafts in excess of 500 feet deep and several reports, including a small exploration-drilling program, confirm nugget effect gold values throughout the structure.

This acquisition is designed to increase the amount of reserves that the company has acquired in the Santa Maria Mine area. The two properties are closely related in both geographical location and geological genesis. The potential of the property to produce low cost, alternative feed stock to the Santa Maria mill makes the acquisition a strategic part of the companies overall plans. Further details will be announced, as they become available.

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance and underlying assumptions, and all statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks defined in this document. These cautionary statements expressly qualify all such forward-looking statements made by or on behalf of Orex. In addition, Orex disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.