Regal Goldfields Limited - Amendment to Previously Announced Agreement.

TORONTO--(BUSINESS WIRE)--Jan. 7, 1997--REGAL GOLDFIELDS LIMITED (CANADIAN DEALING NETWORK REGL.) Regal Goldfields Limited announces that it has amended its previously announced agreement to sell 3,300,000 of its units for $1,980,000 ($0.60 per unit), each unit comprising one common share and one three-year share purchase warrant, each warrant enabling the purchase of an additional common share of the Company at $0.90. Regal will now sell a minimum of 2,700,000 and a maximum of 3,300,000 of these units for a minimum of $1,917,000 and a maximum of $2,343,000 ($0.71 per unit). Current shareholders will purchase the majority of these units and consequently there will be no change in control of Regal. A special meeting of shareholders has been scheduled for February 7, 1997 to consider a resolution to approve the issuance of these units.

As previously announced, Regal will offer to purchase all of the issued shares of North Cape Breton Resources Limited and Highland Range Minerals Limited, both private companies with mineral properties on Cape Breton Island, Nova Scotia, for a total of $1,500,000. Earlier this year, Regal had agreed to acquire an undivided 51 percent interest in the mineral holdings of North Cape Breton for a cash payment of $400,000 and a two-year exploration commitment of $1,000,000, with the right to acquire the remaining 49 percent interest for a maximum of 5,000,000 treasury shares, subject to an independent valuation and regulatory approval. If this offer is completed, it will eliminate the need to issue the said treasury shares. Highland Range owns mineral properties covering some 8,000 acres immediately to the west of and contiguous to North Cape Breton's properties; it has optioned these properties to International Northland Resources Inc. on the basis that International Northland must spend $1,000,000 on the lands in order to earn an undivided 51 percent interest therein, with the right to acquire the remaining 49 percent interest for 5,000,000 treasury shares of International Northland, subject to an independent valuation and regulatory approval.

Shareholders representing 78.1 percent of the outstanding shares of Highland Range and 75.0 percent of North Cape Breton have indicated that they will accept the cash offer representing a total cash requirement of $1,172,358. Discussions are continuing with the remaining shareholders of Highland Range and North Cape Breton.

Further, Regal proposes to purchase International Northland's rights and entitlements under its agreement with Highland Range for 500,000 shares of Regal, a 1 percent net smelter royalty ("NSR") in the Cape Breton Island properties held by both Highland Range and North Cape Breton and the assumption of all further obligations of International Northland under the agreement. Regal would have the right to purchase one-half of the 1 percent NSR for $1,000,000.

Regal plans a 4 hole diamond drill program to test a strong conductor on its 16 claim property located about 6,600 feet west of the Kidd Creek Mine, 15 miles north of Timmins, Ontario. This conductor was identified by downhole UTEM surveys performed by Lamontagne Geophysics Ltd. in 2 previous drill holes. The program will commence in February, 1997 under the direction of Watts, Griffis & McOuat, Consulting Geologists and Engineers. -0- NO REGULATORY AUTHORITIES OR SIMILAR BODIES HAVE APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.

CONTACT: Regal Goldfields Limited

Richard W. Brissenden, 416/364-1130

416/364-6745 (FAX)