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Regal Goldfields Limited - Company Update.

TORONTO--(BUSINESS WIRE)--Nov. 25, 1996--Regal Goldfields Limited (CANADIAN DEALING NETWORK: REGL) -- Regal Goldfields Limited announces that it has completed its down-the-hole electromagnetic (UTEM) surveys on its 16 claim property located about 6,600 feet west of the Kidd Creek Mine, 15 miles north of Timmins, Ontario.

This technique entails the lowering of geophysical instruments down a bore hole to detect conductive sulphide ore bodies at a distance from the hole. The data collected in holes RK-1 and K54-30 indicate a steeply plunging anomalous structure with a strike length of 700 feet and a vertical dimension of 1,200 feet. In September of this year the Company drilled hole RK-1 to a depth of 1,600 feet for the purpose of carrying out the down-the-hole programme; this hole by-passed the anomalous structure to the south, as did a hole drilled by Regal Goldfields in 1994, hole 94-1. This hole, which was neither cased nor surveyed, intersected significant mineralization containing 1.1 percent Cu, 0.53 percent Zn and 0.2 oz/ton Ag over a length of 6 feet at a vertical depth of approximately 1,100 feet. Drilling will resume early in 1997 under the direction of Watts, Griffis & McOuat, Consulting Geologists and Engineers.

The Company will offer to purchase all of the issued shares of Highland Range Minerals Limited and North Cape Breton Resources Limited, both private companies with mineral properties on Cape Breton Island, Nova Scotia, for $1,500,000. Earlier this year, the Company had agreed to acquire an undivided 51 percent interest in the mineral holdings of North Cape Breton for a cash payment of $400,000 and a two-year exploration commitment of $1,000,000, with the right to acquire the remaining 49 percent interest for a maximum of 5,000,000 treasury shares, subject to an independent valuation and regulatory approval. If this offer is completed, it will obviate the need to issue the said treasury shares. Highland Range owns mineral properties covering some 8,000 acres immediately to the west of and contiguous to North Cape Breton s properties; it has optioned these properties to International Northland Resources Inc. on the basis that International Northland must spend $1,000,000 on the lands in order to earn an undivided 51 percent interest therein, with the right to acquire the remaining 49 percent interest for 5,000,000 treasury shares of International Northland, subject to an independent valuation and regulatory approval.

Regal Goldfields has agreed to sell 3,300,000 of its units for $1,980,000, each unit comprising one common share and one three-year share purchase warrant, each such warrant enabling the purchase of an additional common share of the Company at $0.90. Management and current shareholders will purchase the majority of these units and consequently there will be no change of the control of Regal Goldfields. -0-



CONTACT: Regal Goldfields Limited, Toronto

Richard W. Brissenden, 416/364-1130

416/364-6745 (fax)
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Publication:Business Wire
Date:Nov 25, 1996
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