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Inter-Rock Gold releases third quarter results and Daisy Project update; Daisy to be operational earlier than expected.

TORONTO--(BUSINESS WIRE)--Nov. 25, 1996--Inter-Rock Gold, (TSE: IRO) today announced its third quarter results and that pre-production testing is under way at the Company's Daisy Project in Southwestern Nevada.

"With the project being ahead of schedule and the start of gold production imminent in the new year, our 1997 outlook is significantly enhanced," said Mr. David Crombie, President and Chief Executive Officer, Inter-Rock Gold Inc.

In the nine months ended September 30, 1996, Inter-Rock had operating income of $12,000 and a net loss of $44,000 compared to operating income of $30,000 and a net loss of $6,000 in the same period of 1995. All figures are reported in U.S. dollars.

Metallurgical testing of sulphide ore nearing completion; oxide ore leaching begins

Inter-Rock's metallurgical testing program is nearing a successful completion. The bio-oxidation process testing on Daisy's sulphide ore indicates that 70 - 75% recovery rates are achievable. The ability to use this process on sulphide ore would increase Daisy's mineable reserve.

Construction of the leach pads, processing plant and ancillary facilities began in September. Contract mining began at the same time in the West Zone and Secret Pass pits. Approximately 50,000 tons of oxide ore have been mined and placed under cyanide leach. Drilling of the water well is also in progress. As a result of this progress, the project could be completely operational early in 1997.

Exploration update

The Company's extensive exploration program resumed in the third quarter. The program has and will continue to test several new target areas, explore for the eastern extension of the West Zone deposit, do infill and shallow drilling of the Sunday Night oxide gold deposit, review and study the Mother Lode deposit and commence reserve definition drilling on it.

Up to five new holes are to be drilled in a new target area near the existing Road Zone. Inter-Rock reported in October that one hole in the new area had intersected a 30-foot zone grading 0.25 ounces of gold per ton of oxidized mineralization at 100 feet.

Inter-Rock Gold is a gold development and operating company which holds a 65 per cent interest in Daisy Gold Property at Beatty, Nevada. Production as an open pit run-of-mine heap leach mine will begin in the first quarter of 1997. Annual production of 30,000 ounces of gold during a six-year mine life is forecast. -0-

Interim Statements of Income
For the nine months ended September 30 (unaudited)

US$ 1996 1995
Revenue
Oil and gas $33,000 $63,000
Operating expenses
Production and royalties 9,000 11,000
Depreciation, depletion
 and amortization 12,000 12,000
Mineral exploration 10,000
----------------------------------------------------------------

 21,000 33,000
-----------------------------------------------------------------
Operating income 12,000 30,000
Investment and other income 37,000 (1,000)
General and administrative
 expenses (93,000) (40,000)
-----------------------------------------------------------------
Loss before income taxes (44,000) (11,000)
------------------------------------------------------------------
Income taxes (recovery) (5,000)
------------------------------------------------------------------
Loss for the period $(44,000) $(6,000)
------------------------------------------------------------------
Net loss per share $(0.00) $(0.00)
-----------------------------------------------------------------
Interim Statements of Changes in Financial Position
For the nine months ended September 30 (unaudited)

US$ 1996 1995
-----------------------------------------------------------------
Operating Activities
 Loss for the period $ (44,000) $ (6,000)
 Non-cash items 12,000 12,000
------------------------------------------------------------------
Cash (used in) provided by
 operations (32,000) 6,000
Net change in non-cash working
 capital balances (165,000) 355,000
------------------------------------------------------------------
Cash (used in) provided by
 operating activities (197,000) 361,000
-------------------------------------------------------------------
Investment activities
Additions to oil and
 gas properties (19,000)
Investment in mining
 properties (1,375,000) (611,000)
-------------------------------------------------------------------
Cash used in investment
 activities (1,375,000) (630,000)
-------------------------------------------------------------------
Financing activities
Proceeds on issue of capital
 stock 2,898,000
Increase in long term debt 500,000
------------------------------------------------------------------
Cash from financing
 activities 3,398,000
------------------------------------------------------------------
Net increase (decrease) in
 cash 1,826,000 (269,000)
Cash - beginning of period 104,000 394,000
------------------------------------------------------------------
Cash--end of period $ 1,930,000 $ 125,000
-------------------------------------------------------------------





CONTACT: Inter-Rock Gold

Martti E. Kangas, 416/489-0022 ext.227
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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1996, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Nov 25, 1996
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