RIO AMARILLO MINING LTD. REPORTS PROGRESS ON THE CHACHACOMIRI PROPERTY IN BOLIVIA.

VANCOUVER, B.C.--(BUSINESS WIRE)--May 18, 1995--Rio Amarillo Mining Ltd. (VcSE:RIO) ("RIO") is pleased to report the progress of the exploration program on the Chachacomiri Property in Bolivia currently underway in joint venture with Cominco Resources International Limited (Cominco). The diamond drilling program, that was increased to 2500 metres following a site visit in January, 1995, has fallen approximately six weeks behind the scheduled completion date of April 30, 1995. The delay in the program has resulted from a series of problems encountered with the Bolivian drilling contractor that range from inadequate staffing to equipment breakdowns and slow penetration rates. Rio transferred its own drill to the property in March and this drill has accounted for approximately 40 percent of the 1980 metres drilled to date. The location of the drill holes is shown on the accompanying map.

A total of 11 holes (at -45 degrees), of a 15 hole program, have been completed as of May 16, 1995 and assays are available for 5 of these holes, although so far, only DDH 1 has been assayed for tin.

DDH 1: Drilled to a depth of 254 metres and cut 52 metres, from 44 to 96 metres, grading 68 grams per tonne silver, 1.9 percent zinc, 1.0 percent lead, and 0.2 percent tin.

DDH 2: Drilled to a depth of 207 metres, the hole encountered two sections of mineralization. The first section of 91 metres, from 0 to 91 metres, graded 3.2 grams per tonne silver, 0.51 percent zinc and 0.15 percent lead. The second section, from 150 metres to the end of the hole, graded 9.7 grams per tonne silver, 0.06 percent zinc and 0.11 percent lead.

DDH 3: Drilled to a depth of 212 metres from the northwest into Cerro Chacha, the hole encountered mineralization of 5.0 grams per tonne silver, 0.42 percent zinc and 0.12 percent lead over the full length of the hole. The Paleozoic basement was encountered at a depth of 205 metres.

DDH 4: Drilled to a depth of 205 metres from the southwest into Cerro Chacha on the same section as DDH 1. Weak mineralization was encountered in the top 64 metres of the hole before passing into the Paleozoic basement.

DDH 5: Drilled to a depth of 138 metres 800 metres west of Cerro Chacha. The hole was terminated after encountering the Paleozoic basement a a depth of 108 metres. Assay results have been received from the first 36.6 metres that have an average grade of 0.5 percent zinc, 0.2 percent lead and 3.4 grams silver per tonne.

DDH 6: Drilled to a depth of 214 metres into the Induced Polarization (IP) anomally at Illapunta. Weak zinc - lead mineralization was encountered over an interval of 76 metres from 0 - 76 metres, grading less than 0.4 grams per tonne silver, 0.48 percent zinc and 0.17 percent lead. The Paleozoic baasement was encountered at a depth of 76 metres.

DDH 7: Drilled to a depth of 250 metres from the south into the IP anomaly at Pie de Gallo, located 500 metres to the west of Cerro Chacha. Strongly mineralized material was encountered over an interval of 105 metres from 3 - 108 metres. The Paleozoic basement was intersected at a depth of 108 metres. Assay results are available from the first 56 metres of the hole that include a section of 19 metres, from 37 to 56 metres, that grades 28.2 grams per tonne silver, 0.86 percent zinc and 0.12 percent lead.

DDH 8: This hole was drilled on the same section as DDH 4, but was terminated after encountering old workings that made drilling impossible. No assays are available.

DDH 9: Drilled to a depth of 32 metres in the Illapunta area near the Rosita fault. The hole was terminated in the Paleozoic basement. No assays are available.

DDH 10: Drilled to a depth of 175 metres in the Illapunta area. The hole encountered silicified Agua Dulce volcanics that showed pyrite and other sulphide mineralization prior to entering the Paleozoic basement at 96 metres. No assays are available.

DDH 11: Drilled to a depth of 96 metres and intersected a highly limonitic and oxidized breccia zone to a depth of 48 metres. The hole was terminated at 96 metres in argillized Agua Dulce andesites. No assays are available.

The drill results to date indicate that there is a highly altered zone, comprising altered andesites and dacite porphyry overlying the Paleozoic basement in the Cerro Chacha area. Apart from the intersections in DDH 1 and DDH 7, the zinc-lead-silver mineralization has been weak. However, DDH 6, in the Illapunta area, carries higher levels of manganese that indicates that the area could be on the perifery of a mineralized system. Based on the results, additional holes will be drilled in the north of the Illapunta area, to the southeast of Cerro Chacha, and in the Khasapunta area as shown on the attached plan.

RIO is a mineral exploration and development company engaged in locating, evaluating, acquiring, and contingent upon obtaining satisfactory exploration program results, developing mineral properties in South America. The Company aggressively seeks value added opportunities on its own or with others in areas of its primary focus where it employs a well established exploration team with over 500 man-years of direct local experience in Ecuador, Peru, and Boliva. -0- NOTE: Location map available from the Company at the phone number listed above.

The VSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

CONTACT: Rio Amarillo Mining Ltd.

James K. Wright, 604/681-7131