Panther Resources Announces Massive Sulphide Rich Zones Encountered.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Aug. 17, 1998--Panther Resources (NASDAQ:PTHR) reports that two zones of very significant mineralization have been intercepted.

Gordon Muir, CEO, just returned from the La Verde mining project in Sinaloa, Mexico. Muir states that "after reviewing the newly discovered zones of mineralization, I can only say that our persistence has certainly paid off."

The first zone encountered is on level 3D in the main ore body. "It's like walking into a room with a golden ceiling because the chalcopyrite is so dominant". The level 3D zone assayed 66 g/t Silver, 0.25 g/t gold and 16.3% Copper. Drifting is continuing in level 3D to ascertain the length and breadth of this mineralization.

Approximately 100 meters above level 3D, we encountered a super rich massive sulphide zone in Drift 6, level 3. Marshall Smith, Senior Project Manager, reports from the property:

"The full 23 metre length of Drift 6 on Level 3.0 is all within the LaVerde sequence with weakly altered limy volcano-sediments carrying 20 to 75% sulphides. In the central portion the predominate sulphide is polybasite with some chalcopyrite as inclusions. This sequence of mineralization is exposed in the back and face of the drift of about 10 meters with an average width of about 1-meter. This zone has more than doubled in width as of August 16, 1998 to over 2 meters in width. A sample of this high grade massive sulphide zone taken from the face on the 12th of August, 1998 for 1.1 meters in width had the following assay results: -0-

          Au  g/t           Copper %         Ag  g/t  /  oz

            1.0                18.5         2795  /  98.5
-0-

This sulphide rich bed is encased in lower grade sulphide rich beds with the full "ore" grade zone six meter's in width. The parallel beds also carry high grade silver and copper (assay's will be reported as they become available). The face on August 16, 1998 has a footwall (right side) of limestone grading to a very rich sulphide polybasite in the central face, which extends nearly to the left wall. The left wall is chalcopyrite and tetrahedrite bearing green La Verde sequence. The last 3 meters of the right wall also appear to be "ore" grade material."

At current commodity prices for silver ($5.00/oz) and copper ($.75), this new ore will bring revenues of over $800/ton which is in excess of 20 times our current revenues while the cost of producing this ore will remain at current levels of approximately $16/t.

Panther Resources is an active mining and exploration company whose main mining asset is the La Verde Mine in Mexico, which is currently in production. The company is in the process of expanding the current milling operations to more than double it's current production. The company has been approached by several major mining companies for joint venture possibilities, of which two of these companies have recently been on the property conducting due diligence of the mining and milling operations.

For further information on our company, please contact our office at 604/689-5377 or Fax: [phone] or visit our web-site www.pthr.com.

Certain statements in this news release constitute "forward-looking" statements within the meaning of Section 21E of the U.S. Securities Exchange Act of 1934. Such forward-looking statements involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

CONTACT: Panther Resources, Ltd.

Ph: 604/689-5377

Fax: [phone]

Website: www.pthr.com