Viceroy Resource: Argentina Exploration Results Provide Encouragement.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Jan. 20, 1999-- Viceroy(TSE:VOY.) Viceroy Resource Corporation ("Viceroy") today announced additional exploration results from the Gualcamayo Project in Argentina.

Results of preliminary metallurgical test work, the balance of assays from 1998 drilling and further surface sampling continue to provide encouragement. The results of metallurgical test work are of particular importance, as they indicate that the oxidized mineralization responds well to cyanide extraction of gold.

Resource Development Inc. of Denver, Colorado completed bottle-roll cyanidation tests on seven oxide and one sulfide sample from diamond drill core. Results, summarized in Table 1, indicate that recoveries from 24-hour bottle-roll tests were greater than 92 percent for oxide samples and showed no improvement for longer leach times of 96 hours or fine grinding of samples. Recoveries were in excess of 85 percent after just six hours of leach time. Cyanide consumption was low for the 24 hour tests, ranging between 0.04 to 0.24/kgT NaCN. The only sulfide sample tested, from hole QD-2, returned substantially lower gold recoveries. -0-

Table 1.  Summary of Bottle-Roll Cyanidation Tests

Sample/         Sample    Head Grade  Coarse    Fine Ground
 Interval (m) Description   (gpt)     Samples    Samples
                                                P80=200 mesh
                                    Extraction  Extraction
                                    percent Au  percent Au
                                   24 hr 48 hr  24 hr 48 hr

98QD01
 038.0-040.0    Oxide       2.93   100.0  99.6  100.0  98.3
98QD02
 020.0-022.0    Oxide       2.22    97.0  99.5  100.0  99.4
98QD02
 024.0-026.0    Sulfide     2.57    10.8  20.5   12.5  14.2
98QD05
 018.0-020.0    Oxide       2.93    95.3  93.1   88.6  95.6
98QD06
 008.0-010.0    Oxide       2.04    96.8  92.4   92.7  99.4
98QD07
 016.0-018.0    Oxide       1.63   100.0  97.0   85.0  93.3
98QD07
 142.0-144.0    Oxide       2.62   100.0  99.6   99.0  99.6
98QD08
 126.0-128.0    Oxide       2.08    92.4  99.5  100.0  99.2

Initial test results indicate that oxide mineralization is amenable to cyanidation extraction and may be processed using low cost heap leach technology or conventional agitated leaching.

Hole QD-14 was stopped at 286 metres, short of its target, for the Christmas break. Elevated gold values are present in the hole with the interval from 52 to 282 metres averaging 0.341 gpt gold. The hole will be re-entered and completed to a target depth of 400 metres.

Table 2.  Summary of Significant Intercepts- Hole QD-14

From (m)   To (m)   Interval (m)     Grade (gpt Au)
  84        86          4                1.46
 122       134         12                0.90
 166       180         14                0.50
 234       264         30                0.895

Systematic bedrock sampling completed on widely spaced lines has traced mineralized marbles for at least 1.5 kilometres to the northwest of the Quebrada del Diablo ("QdD") Zone. This ties the breccia mineralization at QdD to previously identified skarn mineralization at the Amelia Ines and Magdalena areas as shown on the attached map.

Chip sampling at the end of the General Belgrano adit identified mineralized marble breccias that assayed 0.9 gpt gold over 14 metres. The D adit, located approximately 500 metres to the northwest, contained the following mineralized intervals:

Table 3.   Summary of Significant Intervals - D Adit

From (m)       To (m)   Interval (m)     Grade (gpt Au)
    20          68          48               0.748
Includes 24     36          12               2.01
Includes 60     64           4               1.14

A reverse circulation drill rig has been mobilized to the project and systematic drilling from road accessible sites is underway. Diamond drilling is scheduled to re-commence in February.

Viceroy Resource Corporation is a mid-tier gold producer headquartered in Vancouver, B.C. In addition to the 100 percent- owned Brewery Creek Mine and 75 percent-owned Castle Mountain Mine, the Company has aggressive exploration and acquisition programs underway in the Americas. The Company has a strong cash position with working capital of approximately $55 million and a substantial hedge book.

Statements contained in this news release that are not historical facts are forward-looking statements that involve various risks and uncertainties which are detailed under the heading "Risk Factors" in Viceroy's Annual Information Form filed with the securities commissions of Ontario, British Columbia, Alberta, Quebec and other regulatory authorities. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. All subsequent written and oral forward-looking statements attributable to Viceroy or persons acting on its behalf are expressly qualified in their entirety by this notice.

NOTE: Location map available from the Company at the phone number listed below.