Sinchao Update.

VANCOUVER, British Columbia--(BUSINESS WIRE)--June 19, 1998--

SINCHAO-DRILLING UPDATE

HOLE SDH-02: Completed at 629.7 metres in a porphyry. The last 10 metres intersected magnetite (traces) and pyrite (3-5%) mineralization. Ground water in flow stopped the hole.

HOLE SDH-03: Completed at 492 metres. This hole intersected volcanics from 46 to 210 metres containing pyrite mineralization (1-10%) averaging 3%. Marginal skarn mineralization was intersected from 210 to 413 metres with magnetite content averaging 2% and pyrite content (1-5%) averaging 2%.

HOLE SDH-05: Current depth 502 metres. This hole intersected and mineralized volcanic breccia from 325 to current depth containing pyrite 1-15% (averaging 4%).

HOLE SDH-06: Current depth 722 metres. Skarn mineralization intersected from 160 metres to hole bottom containing magnetite (0-5% to 60%) average 8% and pyrite (1 to 10%) averaging 5%. The skarn mineralization has verified the magnetic geophysical anomaly.

HOLE SDH-07: Current depth 40 metres. See map attached. The company is awaiting assays for the diamond drill holes above.

SINCHAO-HIGH GRADE GOLD INTERCEPT

HOLE SDH-02: Intersected 10.62 ozs/tonne gold over two metres from 408 to 410 metres. This represents the average of three fire assays on the same sample. The company advises that caution should be taken in the interpretation of this result. The true width, depth and strike extents are unknown. The drill sample will be resampled and reassayed using screen metallic methodology. The assay however highlights the importance of undertaking screen fire (metallic gold) check assays for the Sinchao project.

Petrology results (SDH-05 at 206.55m) received have also identified the presence of free gold as grain of cuproaurite a rare copper gold mineral surrounding pyrite crystals. Native silver was detected together with massive potassic feldspar associated with chlorite. This finding has both assay methodology and metallurgical implications for the project.

SINCHAO-PROPERTY

The Mirtha and the San Nicolas concession acquisitions announced on April 16, 1998 expand the area of Sinchao 100% owned by El Misti to 820 ha. Sinchao adjoins the Tantahuatay project which is a joint venture among Southern Peru Copper 44.2% Buenaventura 40.1% and the Piaggio family (15.7%) as the Coimalache joint venture. The joint venture has announced a resource of 25 million tonnes of oxide grading 0.8 g/t gold and 350 million tonnes of sulphide grading 0.85% copper and 0.3 g/t gold confirmed as gold copper porphyry.(Refer Informativo Mensual: Sociedad Nacional Mineria y Petroleo April 1998 Year 7 No. 4).

SINCHAO-QUALITY ASSURANCE PROGRAM

Howe Chile Limitada have advised the diamond drill samples can be accepted with a reasonable degree of confidence. However, when the assay duplicates, blank standards, multi-element standards, inter-laboratory analytical checks and assay methodology checks are completed on the diamond drill hole samples, the assay data will have a better degree of confidence.

ON BEHALF OF THE BOARD

ROBIN A. SLAUGHTER, President & CEO JOHN F. HUGUET, Executive Chairman

FOR A COPY OF A MAP INCLUDED IN THIS PRESS RELEASE OR For further information please contact investor relations:

Joyce Wyssen Telephone: [phone] Toll Free: 1-888-356-4784 (El-Misti) Facsimile: [phone] Website: www.elmisti-emg.com E-mail: [e-mail]

The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release

   CONTACT:  El-Misti Gold Limited
              Joyce Wyssen, 604/681-6186
                            888/356-4784
                       fax, 604/681-2000