SIKAMAN ENTERS INTO AN AGREEMENT TO PURCHASE PRODUCING MINE.

TORONTO--(BUSINESS WIRE)--FEB. 1, 1995--SIKAMAN GOLD(TSE: SKG ) Sikaman Gold Resources Ltd. ("Sikaman") announced today that it has signed a Letter of Intent with Enro Energie und Rohstoff GMBH ("Enro"), a company formed under the laws of the Federal Republic of Germany. It is proposed that Enro and its partners will sell to Sikaman no less than 75 percent and up to a 100 percent interest in Hoogenoeg Andalusite Pty. Ltd., a South African corporation which has a 100 percent ownership in the producing Hoogenoeg Andalusite mine. The parties have agreed that subject to negotiations and finalization of final agreements and satisfactory due diligence by both Enro and Sikaman, and subject to shareholder and regulatory approval, Enro will receive a secured debenture convertible into common shares of Sikaman with such conversion resulting in Enro possibly acquiring a 50 percent equity interest in Sikaman after giving effect to the transaction. Under certain financial conditions being met, Sikaman can convert the debenture into common shares.

Additional terms of the Letter of Intent include:

a) An immediate private placement of $200,000 by Enro into Sikaman to purchase units priced at $0.10 per unit. Each unit consists of one common share and one common share purchase warrant exercisable at a price of $0.10 per share over a two year period;

b) A second private placement by Enro in the amount of $300,000 with such placement being made at a later date and subject to Sikaman meeting certain conditions;

c) An undertaking by Sikaman to complete a public or debt financing in 1995 with Enro retaining the right, but not the obligation to participate proportionately;

d) Enro agreeing to use Sikaman as its "resources" company through which additional projects (primarily located in southern Africa) might be acquired and developed; and

e) Should the transaction be approved by shareholders of Sikaman, Enro would be entitled to nominate four directors to a seven member Board.

Enro is an energy, mining, finance and leasing company with operations in Germany, South Africa, and more recently China. Dr. Karl Bund the Chairman and CEO of Enro and Dr. Jurgen Weiskam, a Director of Enro, have been appointed to the Board of Directors of Sikaman. Dr. Bund was previously Chairman of Ruhrkohle AG, the largest coal producer in continental Europe. During the period 1979-1991, Dr. Weiskam was CFO and a member of the Board of Management of Ruhrkohle Handel, a $3 billion corporation that trades in coal, oil, and pharmaceutical products and is wholly owned by Ruhrkohle AG.

The Hoogenoeg Andalusite mine located in the Transvaal region of South Africa has been in production since 1974. South Africa currently produces between 70-80 percent of the world's andalusite products with such production coming from three mining operations. Andalusite is an industrial mineral used primarily in the manufacture of refractory fire bricks, tiles, linings and filters. Hoogenoeg markets its products through Extram, an international industrial mineral marketing group. Extram provides Hoogenoeg with worldwide product representation, preferential freight rates along with financing and credit terms; elements which are considered essential to maximize product exposure and profitability.

Over the past few months the Hoogenoeg mine has undergone extensive operational changes including the replacement of used and aging equipment. Substantial changes have been made to the production plant thus improving product yield and ultimately improving the profitability of the mine. This modernization program is expected to continue throughout most of 1995.

Mr. Tom Griffis, President of Sikaman, stated that "this new association with Enro will greatly enhance the Company's potential to meet our objective of enhancing shareholder value". Mr. Griffis went on to state that "the prospect of generating regular and timely cash flow from operations will provide a base for Sikaman from which other opportunities might be pursued.

Sikaman anticipates delivery of the independent valuation of the Hoogenoeg mine prior to March 1st, 1995. Shareholders will be presented with an "Information Circular" describing the proposed transaction; and a Special Meeting of Shareholders will be held to consider the proposed transaction. It is anticipated the meeting of shareholders will take place during the second quarter of 1995.

CONTACT: Mr. A.T. Griffis, 416/867-9087