Treminco Resources: Letter of Intent to Acquire Major Gold Deposit From Newmont Gold Company.

VANCOUVER, British Columbia--(BUSINESS WIRE)--April 24, 1998-- TREMINCO RES.(TSE:TMO.) Treminco Resources Ltd. (TSE: "TMO") is pleased to announce the Company has entered into a Letter of Intent to acquire the Elkhorn Project in Montana from Newmont Gold Company (NYSE: "NGC"). Under the agreement, Treminco will make initial payments of 550,000 common shares and US$1.1 million payable over two years, and subject to the expansion of mineable reserves, further payments of US$1.5 million and US$1.0 million, payable no later then April 30, 2003 and 2005, respectively.

"We are in the process of positioning Treminco to take advantage of rising gold prices through the acquisition of low cost, high quality gold assets with near term production potential. The acquisition of the Elkhorn Project represents the Company's first step toward this objective." commented David Hottman, President and Chief Executive Officer, Treminco Resources Ltd.

The six square mile Elkhorn Project is an advanced stage gold project located on the southern end of the Elkhorn Mountains in Jefferson County, Montana, approximately 22 miles southeast of Helena. Over US$12 million has been spent on the exploration and development of the property by a succession of related major mining companies including Gold Fields Mining Company, Santa Fe Pacific Gold Corporation and Newmont Gold Company. At Elkhorn, 502 core and 145 reverse circulation drill holes totaling 366,501 feet have outlined a geologic resource of 1,650,000 ounces of gold (22.8 Mt at 0.073 opt Au, cut off grade 0.02 opt Au). A 1996 resource audit by Pincock Allen & Holt calculated a measured and indicated open pit resource containing 955,000 ounces of gold (10.8 Mt at 0.088 opt Au, cut off grade 0.03 opt Au) and a 1995 pre-feasibility study by H.A. Simons calculated an underground mineable diluted reserve of 500,000 ounces of gold (3.1 Mt at 0.162 opt Au, cut off grade 0.1 opt Au).

Gold mineralization at Elkhorn occurs within gold skarn deposits. Exploration to date has identified four main deposits located within a one square mile area; the Carmody, the East Butte, the Gold Hill and the Sourdough. Highlights from the 502 core and 145 reverse circulation drill holes include:

            Hole ID    Interval    Intercept     Grade
Deposit      (core)     (feet)      (feet)     (opt Au)

Carmody     CEH-057     241-295       54         0.240
East Butte  CEH-069      28-280      252         0.227
Gold Hill   CEH-184       0-145      145         0.207
Sourdough   CEH-330     345-525      180         0.400

All the deposits at Elkhorn are associated with metasomatic replacement of calc-silicate hornfels and marbles by diorite to quartz monzonite intrusive bodies. Near-vertical mineralization along the intrusive contacts and stratabound sediment-hosted mineralization occurs within each of the deposits. Skarn formation is greatest, up to 300 feet thick, where the stratabound zones intersect the intrusive contacts. The deposits have strike lengths of up to 2,000 feet and extend at least 1,000 feet in depth. Gold mineralization occurs as free grains of native gold and as late stage coatings on sulfide minerals.

Initial analysis by Treminco, using a life of mine average gold price of US$335 per ounce, indicates that the Elkhorn Project can be developed as a near-surface high grade underground mine similar to Pegasus Gold's nearby operating Diamond Hill Mine. Analysis utilizing an estimated diluted mineable reserve of 256,000 ounces (1.1 Mt at 0.240 opt Au, cut off grade 0.15 opt Au) and the H.A. Simons underground study, suggests the Elkhorn Project could support minimum annual production of 45,000 ounces at a cash cost of approximately US$230 per ounce. This first phase of development will be expanded to accommodate reserve expansion from improving gold prices, operational optimization and exploration successes.

"The Elkhorn Project can be profitably developed at current gold prices and the gold resource is highly leveraged to the price of gold. If gold increases from current levels to the US$375-US$400 per ounce range, the underground mineable diluted gold reserve will double to 500,000 ounces. There is also exceptional potential to expand the 1,650,000 gold resource through exploration. New gold resources may be developed from extensions of the known deposits, from other gold prospects and mines within the project land package and from exploring blind targets developed through geophysics, geochemistry and geologic mapping. In total, there are eighteen untested drill-ready targets on the property." commented Gary Nordin, Director, Treminco Resources Ltd.

Over the next six months, the Company will complete a detailed due diligence review of the Elkhorn Project including confirmation drilling and audit, revision of reserves and mine plan, metallurgical audit and a review and update of environmental, permitting and community issues. In addition, the Company will initiate a comprehensive exploration plan to investigate untested drill targets and identify new areas of interest.

The closing of this transaction is subject to all necessary regulatory, exchange, shareholder and government approvals.

ON BEHALF OF TREMINCO RESOURCES LTD.

David Hottman, President and CEO

Treminco Resources Ltd. is an associated company to Eldorado Gold Corporation which currently owns 19 percent of Treminco's common shares. Treminco Resources Ltd.'s shares trade on the Toronto Stock Exchange.

CONTACT: Treminco Resources Ltd.

David Hottman or Geoff Chater, 604/687-4450

604/687-5100 (FAX)

E-mail: [e-mail]

Website: http://www.treminco.com