Q.E.X. Resources Inc. Files Prospectus with the Quebec Securities Commission; QEX Expects Trading to Resume June 5, 1997; QEX Announces Rights Offering.

MONTREAL--(BUSINESS WIRE)--May 29, 1997--(ME: QEX.) Q.E.X. Resources Inc. is pleased to announce that it has filed today a preliminary prospectus with the Quebec Securities Commission and anticipates the resumption of trading of its shares on the Montreal Exchange on June 5, 1997. Trading on the shares of the Company was halted pending the dissemination of additional information after the Company announced the proposed acquisition of a 60 percent interest in International Minerals and Metals Corporation Ltd ("IMMC").

Subsequently QEX also announced its intention of initiating a takeover of Eurasia Mining Plc, a company listed on the AIM Board of the London Stock Exchange. This detailed information can now be found in the preliminary prospectus, a copy of which can be obtained by contacting the persons listed below.

IMMC

IMMC has a 51 percent interest in the entity which operates the Obrotchishte manganese mine in Bulgaria. IMMC also proposes to acquire from the Government of Bulgaria, 82 percent of the issued and outstanding shares of the company which owns the remaining 49 percent of the said entity and which has title to the mining assets. The Obrotchishte mine has been extensively explored, developed and mined. Total past production is in the order of 1 million tonnes with annual production of around 72,000 tonnes of concentrate.

Defined resources for the Obrotchiste mine, as reported by Continental Resource Management Pty Ltd in a report of March 1997 which is based solely on their review of the published work of Bulgarian geologists, total 126 million tonnes of which 80 million tonnes is mineable with estimates in the order of 1 billion tonnes for the area controlled by the project. At the proposed future rate of production, the mineable resources should provide for a mine life in the order of 160 years.

Approximately $20,000,000 is expected to be allocated for capital expenditures at the mine to increase capacity from 150,000 to 500,000 tonnes per annum, including the installation of a manganese sinter plant which is projected to produce 100,000 t of sinter consuming over 65 percent of the expanded production. The sinter process will upgrade the Mn content of the concentrate from 33.5 percent to 48 percent.

IMMC's sole other material asset is an option to acquire iron ore deposits in the Schefferville area of the Province of Quebec. IMMC has recently commissioned a feasibility study on the property, operated until 1983 by the Iron Ore Company of Canada ("IOCC"). Total resources for these deposits as reported by Kilborn Inc in their report of March 1997, based solely on the original IOCC estimated reserves are estimated to be approximately 58 million tonnes in the measured and indicated categories with inferred resources estimated to total approximately 132 million tonnes.

All drilling, trenching, assays, geological interpretations and original resource estimates used by Kilborn were completed by the IOCC during a period extending from 1947 until 1982. The property has existing infrastructure and rail access to the St. Lawrence River port of Sept-Iles, Quebec. In the event the results of the feasibility study are favourable, IMMC will acquire title to the property, subject to the payment of a 2.5 percent royalty and the discharge of certain liabilities.

Pursuant to its agreement with IMMC, QEX was granted the option to acquire a 60 percent interest in IMMC for a consideration of CDN $20,000,000, by committing an amount of up to $1 million for the commissioning of a bankable feasibility study on the Iron Ore deposits. As additional consideration, QEX shall issue up to 1,000,000 common shares to meet IMMC's commitments to certain seed capitalists.

Closing of the transaction is subject to a number of conditions, including the completion by the Company of its due diligence on the affairs of IMMC, the representations and warranties of IMMC being accurate as of the Closing date and IMMC having finalized certain transactions related to its title to the Iron Ore Deposits and the Manganese Mine. The exercise by QEX of its Option is also conditional on QEX having raised a minimum amount of $20,000,000 under the Prospectus or through the exercise of outstanding warrants and options.

IMMC is a private company controlled by Mr. Allan Blood and other of its directors and officers. Messrs Allan Blood and John Mitchell have been nominated for election to the Board of QEX by IMMC in accordance with the provisions of the IMMC Agreement and were elected by QEX shareholders at the annual shareholders meeting. Mr. Mitchell is also the Chairman of Eurasia.

Eurasia Mining Plc

On March 14, 1997 the Company signed a letter of intent with Eurasia Mining Plc ("Eurasia"), pursuant to which the Company proposes to make a friendly take-over bid for all of the approximately 5,000,000 shares of Eurasia. In the event certain stated conditions are met, each shareholder of Eurasia will be offered to exchange each of his shares of Eurasia for a number of shares of QEX established on the basis of the average closing price of the shares of QEX on the Montreal Exchange for the first ten trading days after they resume trading following the filing of the preliminary prospectus, divided by the average of the equivalent in Canadian dollars on each such day of 4.00 Pounds, provided that such number shall not be less than one share of QEX per share of Eurasia. The Letter of Intent further provides that on or before the date of the formal offer, QEX will have raised sufficient capital to be in a position to irrevocably commit an amount of US$10 million to finance Eurasia's activities and will have satisfied Eurasia's management of its ability to raise another US$10 million which shall be allocated to finance Eurasia's activities for 1997.

Eurasia is a mining exploration company which has focused its activities on acquiring an interest in a number of medium-sized projects in the Urals region of Russia. Eurasia holds 51 percent of the company which owns the mining licence over the Soloviev Hill platinum district which is located approximately 100 km north-west of Ekaterinburg. It also holds 25 percent and has the right to own 51 percent of the company seeking the licence over a gold deposit which is located 44 km east of Ekaterinburg. Approximately 25 percent of the deposit is considered amenable to open pit mining. There is currently a small scale in-situ leaching scheme active on the property.

Eurasia has also acquired a 49 percent equity interest in the entity owning the old Central Mine at Karabash, a mining town and industrial complex in the Soymanovsky Valley, 150 km south of Ekaterinburg. The Central Mine, which opened in 1904, was operational until 1994 whereupon, due to financial and other difficulties, output ceased. Eurasia's initial involvement in the Karabash area was as a joint venture partner looking at re- working the gold tailings from the Central Mine. Eurasia owns 50 percent of the company which has rights to exploit the tailings and has control of the Board of Directors and management control.

Eurasia has constructed a pilot plant on the tailings to test the economical viability of extracting the gold.

Eurasia also has direct and indirect interests expected to total 74.5 percent in sulphide deposits along the Karabash mineralised belt which are characterised by a number of gold rich, sulphide gossan caps which outcrop generally along a ridge. Eurasia has been conducting preliminary open pit studies. Eurasia intends to conduct additional exploration drilling and a pre-feasibility study on the deposits.

Eurasia owns a 51 percent direct, and 18.75 percent indirect interest in the company applying for the mining licence on the Sultanovskoye deposit. It is situated approximately 200 km south of Ekaterinburg and is approximately 6 km away from major infrastructure facilities. The deposit is 60 metres below ground and consists of four separate sulphide lenses. Eurasia is at a preliminary stage in exploring the deposit which is viewed as a longer term development.

Eurasia has signed an agreement to form a 50:50 Joint Venture with a Russian company to plan and implement development of the large Svetlinskoye gold deposit near Plast in the southern Urals. Svetlinskoye is a hydrothermal gold porphyry deposit where extensive drilling has been conducted. Eurasia is planning a progressive development which incorporates the initial open pit mining of near surface ore for treatment at the under-utilised ore processing plant at Plast.

QEX has mandated A.C.A. Howe International to conduct a review of Eurasia's projects as part of its due diligence verification.

The Special Warrants

The prospectus will qualify the distribution of up to 12,500,000 special warrants of QEX at a price of $1.60 for maximum gross proceeds of $20,000,000 which, as announced on March 20, 1997, was approved by QEX shareholders at the company's annual meeting.

Each Special Warrant is composed of one common share of QEX and one common share purchase warrant entitling the bearer thereof to acquire one common share of QEX at a subscription price of $2.00 on or before September 23, 1998.

The Special Warrants are being sold outside of Canada and will be taken down by EBC Zurich AG of Zurich, Switzerland, and other European financial institutions on behalf of portfolio clients. This placement is expected to close on or about June 19, 1997. QEX will use the net proceeds of the special warrants, estimated to be approximately $18,000,000, based on the maximum offering, to finance in part the proposed transactions with IMMC and Eurasia Mining Plc. There are however no assurances that the placement of the special warrants will be completed.

Rights Offering

QEX is also pleased to announce that, subject to regulatory approval, it will shortly proceed with a rights offering on the basis of 1 right for each common share of record at a yet to be determined date; each right will entitle the holder to acquire 1 common share at the lower of $3.50 per share or at a discount to the then trading price of the shares.

All of the above transactions are subject to the approval of the Montreal Exchange. A complete description of all of these transactions is contained in the Prospectus, together with financial statements of IMMC and pro forma consolidated financial statements of QEX reflecting the acquisition of its interest in IMMC. A copy of the prospectus can be obtained by contacting the persons listed below.

Q.E.X. Resources Inc. is listed on the Montreal Exchange under the symbol QEX. -0-

NO REGULATORY AUTHORITY HAS APPROVED NOR DISAPPROVED THE CONTENT OF THIS RELEASE.

CONTACT: Q.E.X. Resources Inc.

Pierre d'Aragon, 514/274-1822

Geoffrey M. Risen, 416/360-2777

or

Q.E.X. Resources Inc. - Media Communications

Robert Adams, 416/368-0669, 416/368-6970 (FAX)

or

Q.E.X. Resources Inc. - Broker & Shareholder

Communications

Peter Karlechuk, 416/360-6660, 416/360-8284 (FAX)