XAVIER'S OUTSIDE BOARD MEMBERS REPORT ON MORGAN GRENFELL, CARNEGIE AND RUSS OIL REVIEW.

HOUSTON--(BUSINESS WIRE)--Oct. 2, 1996--The outside board members of Xavier Corporation ("Xavier") today reported on their review of the facts surrounding the investigation of Morgan Grenfell International Funds, Ltd. ("MGIF") by UK regulatory authorities. MGIF is an institutional shareholder of Xavier Corporation.

As a result of the review, Xavier's outside board members reported that, in their observation:

-- Xavier has accurately disclosed and accounted for the

warrants issued to Russ Oil and Technology, S.A. ("Russ

Oil") to purchase 15,461,675 common shares of Xavier Mines

Limited (or 3,865,419 "post-split" shares of Xavier

Corporation, the successor company) and a related issuance

of an unsecured promissory note to D. Carnegie, AB,

("Carnegie") in the principal amount of Swedish Kroner (SEK)

140 million, or US$ 20,780,763.

-- Xavier management and employees have conducted themselves

properly and without impropriety with respect to the

transactions involving MGIF, Carnegie and Russ Oil.

-- Xavier shareholder interests will continue to be protected by

the Company's Board of Directors, management and employees.

Xavier is principally engaged in the acquisition and development of natural resources, primarily oil and gas, and secondarily provides services to the oil and gas industry. The Company has operations in producing fields in both the West Siberian Basin as well as in the Stavropol region in Southern Russia. Xavier common shares are traded on the Nasdaq National Market under the symbol XVRC and on the Alberta Stock Exchange under the symbol XVR.

CONTACT: Xavier Corp., Houston

Gates Brelsford, 713/652-5111