SIKAMAN INCREASES INTEREST IN NEUQUEN RIVER & CERRO MAYAL PROJECTS.

TORONTO--(BUSINESS WIRE)--March 14, 1995--SIKAMAN GOLD RESOURCES (TSE:SKG) Sikaman Gold Resources Ltd. is pleased to announce that it has successfully concluded negotiations with Cormine S.E.P. to acquire a 100 percent interest in the Neuquen River and Cerro Mayal gold projects in the Province of Neuquen, Argentina. Under previous agreements, Sikaman's interest in these projects was 39 percent and 27 percent respectively. Cormine is the provincially owned corporation which holds mineral rights in the Province. Terms of the new agreements have been considerably improved; yearly access fees for both projects has been reduced to US$60,000 from US$120,000; the two-year work program obligations on the Neuquen River have been reduced to US$1.95 million from US$4.6 million and the Net Smelter Royalty ("NSR") to the vendor has been fixed at 3 percent from a previous variable NSR rate of 3-5 percent.

The 35 kilometre section of Neuquen River assigned to Sikaman hosts an estimated 500 million cubic metres of gold bearing gravel. Historical data from previous bulk sampling and drilling programs has indicated grades in the range of 0.2 to 1.25 grams/cubic metre. Very few of the tests in these previous sampling programs reached bedrock and in a deposit such as the Neuquen River, it can be expected that a marked concentration of gold will occur close to and at the bedrock interface. Previous seismic tests (and in a limited drilling program in 1994) indicate that the depth of the gravels will vary from 15 to 20 metres indicating potential for low cost, large scale production by traditional dredging methods.

Sikaman expects to commence a preliminary evaluation of the Neuquen River gravels this summer with the objective of completing a feasibility study within 12-18 months. The initial objective will be to delineate a 15-20 million cubic metre resource sufficient to support a single dredge capable of processing 5 million cubic metres per year. Based upon an estimated recovered grade of 0.4 grams per cubic metre, a single dredge would produce approximately 55,000 ounces of gold annually at a cash operating cost of about US$150 per ounce. It is expected that the river section assigned to Sikaman might ultimately support several dredges. The break- even operating costs for a dredge of this size is typically in the order of 0.1 grams per cubic metre. Estimated all-in capital costs for a dredge capable of meeting these production parameters is estimated at US$10-15 million.

Prior to the current agreement with Cormine, the Cerro Mayal project was held by a Joint Venture in which Sikaman owned a 27 percent interest. In May 1994, operations commenced but failed to achieve continuous commercial production as a result of various financial, operational and legal deficiencies. Consequently, the property ownership reverted to Cormine until the current agreement with Sikaman was concluded.

The initial work program at Cerro Mayal this summer will focus on confirmation of alluvial reserves in the glacial-fluvial sediments and a separate program to map and sample the bedrock gold occurrences which have been identified on the property. This program will also commence this summer.

Sikaman has several other gold prospects in Argentina, Canada and the USA as well as diamond prospects in the Republic of Central Africa and Botswana which it plans to explore or farm out.

Sikaman has also signed a Heads of Agreement whereby it can acquire a 100 percent interest in the producing Hoogenoeg Andalusite mine in the Transvaal region of South Africa.

CONTACT: A.T. Griffis, President

416/867-9087

INDUSTRY KEYWORD: MINING REPEATS: New York 212-575-8822 or 800-221-2462; Boston 617-330-5311 or

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