South Atlantic Resources Progress Report for Sweden, Zaire, Brazil.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Oct. 21, 1996-- South Atlantic Resources (VSE: SCQ) (the "Company") is pleased to announce that the first phase of due diligence has been successfully completed in evaluating the acquisition of several mining properties in Sweden and the second phase of the evaluation program has been initiated.

The Company entered into an agreement whereby it can acquire 100 percent of the rights to these mining properties in Sweden by the issuance of 3 million shares of Company stock and the expenditure of up to US$100,000 on the properties during a 90 day due diligence period.

Preliminary results of the first phase of an evaluation of the subject properties has been completed by the independent consulting firm of Derry, Michener, Booth and Wall (DMBW). A total of fifteen different projects areas were examined and given rankings based on chances of success. Based on these results the Company will enter the second phase to provide funding for further evaluation of the potential of the properties. Emphasis will be placed on those properties ranked highest by DMBW. Activities will emphasize analysis of geological mapping, sampling, re-sampling of drill core and compilation and interpretation of geological, geochemical and geophysical data. Highlights of results to date include the confirmation of assay values to 0.93 percent cobalt in drill core from a massive sulphide prospect and the confirmation of visible gold in drill core from a prospect located within a typical volcanogenic "greenstone gold" geologic environment.

In other developments, Management reports: In Zaire, on September 13, 1996, the Company formally submitted its bid to Gecamines, the state mining company of Shaba Province, Zaire, on the Kolwezi Tailings Re-Treatment Project. The Company is among five other international companies which have submitted bids for the project. The successful bidder of this project will be notified upon completion of a formal review process.

Also in Zaire, written confirmation was received from Gecamines on Oct. 17, 1996 notifying the Company that it has qualified for bidding on the Ruashi/Etoile Copper Cobalt Project. This is a significant mine development project located near the City of Lubumbashi, Shaba Province with an estimated potential of 62.5 million tonnes of 3.45 percent copper and 0.46 percent cobalt conducive to a low cost, open pit mining operation. Formal bid documentation will be submitted to Gecamines following an official site visit during the first week of November. The awarding of the project to the successful bidder will be announced after due process. In other developments in Zaire, Management reports that an evaluation team, consisting of 27 people, is on-site conducting a preliminary evaluation of the Kasai River alluvial diamond concessions as per the Company's agreement with Sominex SPRL dated March 5, 1996. The results of this evaluation are expected within the next 60 days.

In Brazil, analysis of a 1.2 ton bulk-sample of the Serrinha 1 kimberlite pipe from the Coromandel Project Area by Lakefield Research Laboratories in Toronto has resulted in the discovery of two clear octahedral microdiamonds in the -20/+100 fraction. Measurement data are currently being prepared. Further analysis of these results will be reported at a later date.

Also in Brazil, Management reports that it has reinforced its exploration efforts on the Sapucai Gold Project, located in the State of Minas Gerais. As previously reported, several exploration targets have been identified and exploration teams are conducting detailed follow-up in efforts to identify the bedrock source of alluvial gold being found in pan concentrates of heavy minerals in streams and drainages. In addition, an analysis is being made of the potential for leachable, low-grade economic gold mineralization in the shallow weathered saprolite exposed at the surface within several target areas. Detailed geologic mapping and sampling is underway in conjunction with evaluation of airborne survey data, photo-geologic interpretation and auger drilling. Results of the current program are being compiled and will be reported as soon as available. The objective of the Company is to identify drill targets to be tested during the first quarter of 1997.

South Atlantic Resources Ltd. is a publicly traded company on the Vancouver Stock Exchange engaged in exploration and evaluation of advanced mineral projects in Brazil, Zaire, and Sweden. -0-

Note to Editors: The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content.

CONTACT: South Atlantic Resources Ltd.

Sophia Shane, 604/689-7842