Sikaman Agrees to Acquire Mexican Mineral Exploration Company and files Final Rights Offering Prospectus.

TORONTO--(BUSINESS WIRE)--Jan. 23, 1997--Sikaman Gold Resource (TSE  SKG.) -- Sikaman Gold Resources Ltd. (TSE-SKG) announces that it has executed a definitive purchase agreement providing for the acquisition of Kildonan Inc. ("Kildonan"), whose sole asset is Minera Portree de Zacatecas S.A. de C.V. ("Minera Portree") and certain indebtedness of Minera Portree. Sikaman has filed a (final) prospectus qualifying the issuance of rights to subscribe for 133,169,131 units at a price of $0.075 per unit to raise gross proceeds up of to $9,987,684.83.

Rights Offering Prospectus

Sikaman has received receipts from the Ontario and British Columbia Securities Commissions for a prospectus qualifying a rights offering to its shareholders. Each holder of Common Shares of Sikaman on January 28, 1997 is entitled to receive one right for each Common Share held. One right entitles the holder to purchase one unit at a price of $0.075 per unit at any time on or before March 7, 1997. Each unit consists of one Common Share and one-quarter Common Share purchase warrant. Each one whole Warrant will entitle the holder to acquire one Common Share at a price of $0.08 per share on or before March 8, 1999. The offering is being made only in Ontario and British Columbia. The rights offering expires March 7, 1997. In the event the rights offering is fully subscribed, Sikaman will receive gross proceeds of up to $9,987,684.83.

Minera Portree Acquisition

Subject to regulatory and shareholder approvals and satisfaction of conditions precedent, including successful completion of the rights offering and due diligence reviews, Sikaman has agreed with the shareholders of Kildonan, a corporation formed under the laws of the Cayman Islands, to acquire 100 percent of the issued shares of Kildonan and all of the indebtedness owed by Kildonan to its principal shareholder as at June 30, 1996 for an aggregate consideration of $25,000,000. The purchase price is to be satisfied by the payment of $3,000,000 cash and the issuance to Kildonan's shareholders of Common Shares and Warrants in a number calculated according to a formula that, in the event the rights offering is fully subscribed, will equal 49 percent of the outstanding Common Shares and Warrants on a fully diluted basis upon completion of the acquisition. The formula used to calculate the Common Shares and Warrants issuable to the Kildonan's shareholders is as follows: -0-

Percentage of =      22,000,000                            x100
outstanding    ------------------------------------------------
Common Shares  [Gross Proceeds of Rights Offering] + 35,397,959
and Warrants
on fully
diluted basis

Minera Portree is a private company based in the city of Zacatecas, Mexico, which has been engaged in the acquisition, exploration and development of mineral properties in the State of Zacatecas in north central Mexico since 1989. Its principal focus is silver. The Zacatecas region is recognized as Mexico's premier silver mining district, having produced in excess of 700,000,000 ounces since the 16th century. Minera Portree's property portfolio in the Zacatecas silver mining district consists of projects comprising approximately 16,600 hectares, and as such represents an important silver exploration opportunity for Sikaman. Notwithstanding Minera Portree's focus on silver, base metals (copper and zinc) and gold targets are also a feature of this important property package, with one project (Bilbao), at the pre-feasibility stage.

The eight projects are identified in the table below, along with royalty and property status information. -0-

TABLE 1

PROJECT    LOCATION          ROYALTIES     CURRENT STATUS
-------------------------------------------------------------

Bilbao     Ojo Caliente      1.5 percent   Subject of
           Mining district;  NSR on        pre-feasibility
           56 km SE of       certain       study by
           Zacatecas         claims        Kilborn Engineering

Zamora     Zacatecas mining  2 percent     Advanced
           district; 5 km    NSR           exploration
           NE of Zacatecas

Parroquia  Zacatecas mining  1.5 percent   Exploration
           district; 2 km    NSR
           NW of Zacatecas

El         Zacatecas mining  N/A           Exploration
Colorado   district; 45 km
           SW of Zacatecas

Pajarito   Ojo Caliente      1.5 percent   Exploration
           mining district;  NSR
           63 km SE of
           Zacatecas; 15 km
           W of Ojo Caliente

El         Zacatecas mining  1.5 percent   Exploration
Latifundio district; 15 km   NSR
           N of Zacatecas

Milagros   Ojo Caliente      1.5 percent   Held by Minera el
           mining district;  NSR           Morro and subject
           60 km SE of                     to option to
           Zacatecas; 1 km E               Minera ConSil to
           of Ojo Caliente                 earn 50 percent

Piero      Ojo Caliente      1.5 percent   Held by Minera el
y Gia      mining district;  NSR on        Morro and subject
           60 km SE of       certain       to option to
           Zacatecas; 15 km  claims        Minera ConSil to
           E of Ojo Caliente               earn 50 percent

Upon completion of the rights offering and completion of the acquisition of Minera Portree, Sikaman's principal business will consist of the business of Minera Portree and Mr. G.W. Felderhof and Mr. D.S. MacLeod, nominees of the principal shareholder of Kildonan, will become directors of Sikaman. Mr. A. Thomas D. Griffis will become Chairman of the reorganized corporation and Mr. G. W. Felderhof will be President and Chief Executive Officer.

Annual and Special Meeting

Sikaman is holding an Annual and Special Meeting of Shareholders on March 4, 1997 for the purpose of, among other things, approving of the acquisition of Kildonan and, if the acquisition is approved, amending the articles of Sikaman to consolidate the issued and outstanding Common Shares on a one for twenty-four basis (1:24) and changing the name of Sikaman to "Mexicana Mining Corporation." Sikaman will be mailing the rights offering prospectus, rights certificates, notice of meeting and management proxy information circular to shareholders on January 29, 1997.

CONTACT: Sikaman Gold Resources Ltd.

A. T. Griffis, 416/867-9087