South Pacific Resources: Exploration Work in Progress to Locate the Source of Kalimantan Diamonds.

VANCOUVER, British Columbia--(BUSINESS WIRE)--May 2, 1997--South Pacific Resources Corp. (Alberta Stock Exchange:SHF) announces that in addition to its very active gold exploration program, it has engaged the services of a senior geological consultant (David Lennie), to review the diamond exploration potential of property contained within three of the Company's Contracts of Work (CoW) in Kalimantan, Indonesia. The diamondiferous property covers approximately 3,300 km2 within the contiguous CoW areas known as Jangkang and Masupa Ria "B" located in Central Kalimantan and an area of approximately 2,100 km2 within the area known as Landak in West Kalimantan.

Lennie has had 18 years of experience in all aspects of hardrock and alluvial gold and diamond exploration in five countries covering many different types of geological settings and geographic environments including those of West Africa, Western Australia and Indonesia. He will be responsible for evaluating the diamondiferous areas in order to compile a technical report which the Company will use for presentation purposes in seeking joint venture participants who have diamond exploration and mining experience.

The discovery of diamonds in Kalimantan dates back to the 14th century and by the 16th century, diamond mining was a well-established industry. It was the export of diamonds back to the Netherlands by the Dutch East India Company that laid the foundation for the development of Amsterdam as a diamond cutting/trading centre. During the 18th century, production was in excess of 50,000 carats annually. Kalimantan diamonds have a reputation for their brilliancy. Some extremely large diamonds have been found, such as the 166 carat Trisakti diamond, while stones in the 20-40 carat range have also been recovered.

All of the diamond production in Kalimantan has come from alluvial deposits mined exclusively by the indigenous people. No kimberlitic or lamproitic bodies have been found to date. There are three major areas of diamond bearing alluvial deposits in Kalimantan, two of which are within areas covered by the Company's CoW's: -0-

1)  The Riam Kanan-Martapura area in South Kalimantan held by
    other companies,

2)  The Upper Barito, Sungai Lahung / Gula areas in Central
    Kalimantan held by the Company's Jangkang and Masupa Ria "B"
    CoW's, and

3)  The Ngabang area in West Kalimantan held by the Company's
    Landak CoW.

-0-

Apart from the exploration for alluvial diamond deposits, there has been very little historic exploration in Kalimantan for primary diamond sources. The Company's exploration efforts are directed at locating the primary source(s). The Upper Barito, Sungai Lahung / Gula areas are the focus of the Company's current efforts. Exploration of the Ngabang area will follow. Approximately 300 bulk samples have been collected at a sampling density of approximately 1 per 10 km2. In addition, the diamondiferous area has been flown for detailed airborne geophysics which, in other parts of the world, has proven to be effective for locating kimberlitic intrusive pipes.

The bulk samples are being processed by PT. Indo Mineratama, an independent diamond laboratory who has completed mineral indicator studies on approximately 60% of the samples collected to date. Selected indicator minerals are also being submitted to Microbeam NL. in Australia who are conducting microprobe analyses to determine the chrome content of these specific minerals. The amount of chrome contained in certain indicator minerals is one of the factors used to trace the primary diamond source.

Preliminary results are extremely encouraging. It is apparent that the diamond occurrences of Central Kalimantan occur along three NE-SW structural trends identified as the Babuat, Indo Muro, and Bohot trends. Mineral indicator studies to date have identified 4 microdiamonds together with a wide range of indicator minerals including chromite, garnet, pyroxene, rutile and corundum. In addition to the diamond indicators, abundant alluvial gold has been recognized in a number of diamondiferous areas. Pan concentrate assays range as high as 358 g/t gold.

Robert Chase, President and CEO said, "The diamond potential on some of our contract areas is a valuable added benefit to our exploration properties and, together with our on-going and extensive gold exploration program, provides another opportunity for our efforts to produce potential rewards for the Company's shareholders." Gary Artmont, Vice President, Exploration and Chief Geologist commented, "We are very pleased with the rapid progress achieved under Dave Lennie's direction. The program has advanced very quickly in identifying several areas that may contain primary diamond sources."

The review of the diamond exploration potential is expected to be completed in June. Discussions with potential joint venture participants will start in earnest after that time. In the meantime the Company has had expressions of interest from several diamond exploration companies who indicated they would like to have an opportunity to consider the Company's joint venture proposals.

Further information concerning the Company's diamond exploration efforts and potential joint venture discussions is expected to be made available towards the end of the third quarter. -0-

Note to Editors: The Alberta Stock Exchange has neither approved or disapproved the information contained herein.

CONTACT: South Pacific Resources Corp.

Cam DeLong, M.Sc. (Geol.) or Robert Chase, 604/687-5305