Riosun Resources Corporation Announces "Farm In" Agreement.

CALGARY, Alberta--(BUSINESS WIRE)--May 9, 1997-- Riosun(VSE RSR., NASDAQ RRSCF.) P. Charles Cochrane, President and CEO is pleased to announce that the COMPANY has entered into a "farm in" agreement (the "agreement") on May 8 1997, to explore for gold in the Democratic Republic of Madagascar.

The Agreement was signed with Glamorgan Group Limited ("GGL"), a British Virgin Islands company and enables the COMPANY to earn a net undivided interest of 52.5 percent of the project by funding the exploration program. The project area covers 31.25 square kilometers consisting of five concessions (permit areas) in Betsiaka, Ambilobe province, Madagascar.

Madagascar had been a well established gold producing country for a long time. Official figures indicated 1995 production of 36 metric tonnes from artesianal gold operations. Recorded Betsiaka gold production history goes back to the 1845's when gold was first reported by French geologists. Currently, artesianal gold is being produced from the Betsiaka area.

The COMPANY had the benefit of satellite surveys of the concession areas and samplings from the area before entering into the Agreement. In February and March 1997, Mr. G. Lloyd, P.Eng., P.Geol., independent consulting geologist for the COMPANY collected about 200 samples from more than 24 sites. The samples were inspected by the Director General Inspector of Madagascar and were waxed sealed and sent under secure courier to Loring Laboratories of Calgary where the seal was broken by Loring Lab's officials for assay.

Following further analysis of the results by Mr. Lloyd, it was strongly recommended that immediate exploration be conducted, including detailed mapping, trenching and coring.

Mr. Lloyd also reported widespread alluvial gold in the areas which could be brought into production fairly quickly.

The COMPANY is optimistic that the contract area will produce economic quantity of gold and had agreed to provide additional consideration to GGL upon proving gold reserves of 500,000 to 1,500,000 ounces.

The COMPANY's Canadian geologists will be dispatched to the site to begin the work program in the next few weeks.

Progress in the COMPANY's emerald mine is on schedule and the re- opening and commencement of production is anticipated by the end of June 1997. Mr. Cochrane also met with potential gem cutters, dealers and marketers in Israel to organize for the marketing and distribution of the stones to be produced from the mine.

RIOSUN RESOURCES CORPORATION signed by "Irene B. Rohlsberger" per P.C. Cochrane President and Chief Executive Officer -0-

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CONTACT: Riosun Resources Corporation

Mr. P. Charles Cochrane, 403/266-3644

403/266-3648 (FAX)