Viceroy Resource Corporation Third QuarterResults.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Nov. 23, 1998-- Viceroy Resource Corporation ("Viceroy") (TSE:VOY.) today reported results for the third quarter and nine months ended September 30, 1998. For the quarter, the Company reported cash from operations of $9.2 million or $0.17 per share

and a net loss of $509,000 or $0.01 per share on sales of $26 million. Viceroy reported cash from operations of $14.6 million or $0.28 per share and a loss of $0.7 million or $0.01 per share on sales of $61 million for the nine months. Comparative results follow: -0-

FINANCIAL HIGHLIGHTS
('000 Cdn except per share amounts)
                          Three months ending  Three months ending
                            Sept. 30, 1998        Sept. 30, 1997
Sales                            26,069              29,784
Net earnings (loss)                (509)              3,516
Earnings (loss) per share        ($0.01)              $0.07
Cash from operations              9,152               9,812
Cash from operations per share    $0.17               $0.19
Realized gold price              US$407              US$411

FINANCIAL HIGHLIGHTS
('000 Cdn except per share amounts)
                         Nine months ending    Nine months ending
                            Sept. 30, 1998        Sept. 30, 1997
Sales                            60,980               61,428
Net earnings (loss)                (709)               4,591
Earnings (loss) per share        ($0.01)               $0.09
Cash from operations             14,626               16,753
Cash from operations per share    $0.28                $0.33
Realized gold price              US$412               US$410

-0-

At September 30, 1998, Viceroy's working capital was $54.9 million. Viceroy realized US$407 for gold sales for the period. The Company maintains a strong hedge position with the balance of 40,000 ounces sold forward for 1998 and 150,000 ounces sold forward for 1999 at approximately US$400 per ounce. Hedge benefits for the nine months ending September 30, 1998 were $16.6 million for 1998 as compared to $10.5 million in 1997.

Viceroy produced 103,661 ounces of gold at a cash operating cost of US$267 per ounce for the nine months ending September 30. Operating highlights are summarized in the following table. -0-

OPERATING HIGHLIGHTS
(Three months ending Sept. 30, 1998)

                     Brewery Creek Mine  Castle Mountain Mine
Gold production (ounces)         27,638                20,763
Total ore mined (tonnes)      1,029,000               969,000
Total waste mined (tonnes)    1,902,000             2,582,000
Total material mined (tonnes) 2,931,000             3,551,000
Total ore to pad (tonnes)     1,009,000               846,000
Cash cost per ounce              US$171                US$331

OPERATING HIGHLIGHTS
(Nine months ending Sept. 30, 1998)

                     Brewery Creek Mine  Castle Mountain Mine
Gold production (ounces)         52,638                68,031
Total ore mined (tonnes)      2,287,000             2,578,000
Total waste mined (tonnes)    3,472,000             8,629,000
Total material mined (tonnes) 5,759,000            11,207,000
Total ore to pad (tonnes)     2,238,000             2,608,000
Cash cost per ounce              US$197                US$340

-0-

Lower than anticipated cash operating costs at the Castle Mountain Mine for 1998 are attributed to improved productivity, reduced materials and supplies costs and deferral of the cost of waste stripping that is in excess of the life-of-mine average. An intermediate leaching circuit was commissioned at the Brewery Creek Mine, reducing gold production during the quarter. This circuit effectively doubles the amount of ore under leach and will benefit fourth quarter and 1999 production.

During the quarter, the Company expensed $2.1 million in exploration costs primarily related to regional programs in the Yukon Territory and Argentina. For the nine months, Viceroy has expensed a total of $3.9 million in exploration costs against current earnings.

Viceroy's revised 1998 production estimate is 146,750 ounces of gold at a cash operating cost of US$246 per ounce, including 80,000 ounces at a cash operating cost of US$180 from the Brewery Creek Mine and 89,000 ounces (66,750 attributable) at a cash operating cost of US$331 from the Castle Mountain Mine.

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.

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. -0-

Consolidated Balance Sheets as at
(expressed in thousands of Canadian dollars)

                             September 30,   December 31,
                                     1998           1997
                               (unaudited)      (audited)

   ASSETS

Current Assets

   Cash                        $   40,070     $   40,081
   Accounts receivable              8,180          5,852
   Prepaid expenses                 3,070          2,961
   Inventory                       21,428         17,291
                                ----------     ----------
                                   72,748         66,185

Investments                         5,111          5,121
Resource Assets (Notes 1 & 2)     112,358        113,096
Other Assets                        5,979          9,550
                                ----------     ----------
                              $   196,195    $   193,952

   LIABILITIES

Current Liabilities
 Accounts payable and
    accrued liabilities       $     7,159    $     6,295
 Current portion of
    long-term debt                 10,648         15,889
                              ------------    -----------
                                   17,807         22,184

Long-Term Debt (Note 3)            17,761         20,930
Provision for Reclamation Costs     4,192          3,027
                               -----------    -----------
                                   39,760         46,141
   SHAREHOLDERS' EQUITY

Share Capital (Notes 1 & 2)       193,417        184,994
Deficit                           (44,102)       (43,393)
Currency Translation Adjustment     7,120          6,210
                                ----------     ----------
                                  156,435        147,811
                                ----------     ----------
                              $   196,195    $   193,952

Notes
     1. The Company completed a plan of arrangement with Oro Belle
Resources Corporation ("Oro Belle") to acquire all the shares of Oro
Belle. Under the terms of the arrangement, Oro Belle shareholders
(other than the Company) received one share of the Company for every
eight shares of Oro Belle held. Pursuant to the arrangement, Oro Belle
has become a wholly-owned subsidiary of the Company.
     Based on 8,935,637 common shares of Oro Belle owned by
shareholders (other than the Company), the Company issued 1,116,954
common shares of the Company having an ascribed value of $2,101,000.
     The transaction has been accounted for as a purchase of Oro Belle
and the excess acquisition cost over net book value acquired of
$2,101,000 has been allocated to resource properties.


     Consolidated Statements of Earnings (Loss) for the Period Ended
(expressed in thousands of Canadian dollars - unaudited)


                     Three months         Nine months
                ending September 30    ending September 30

                   1998        1997       1998        1997

Sales        $   26,069  $   29,784 $   60,980  $   61,428
Cost of sales    13,322      16,759     37,427      37,448
Depreciation and
  Depletion       9,444       6,013     16,611      10,207
              ----------  ---------- ----------  ----------
                 22,766      22,772     54,038      47,655
               ---------- ---------- ----------  ----------
                  3,303       7,012      6,942      13,773
Expenses (Income)
   Exploration    2,080         996      3,913       2,028
   General and
   administrative   878         886      3,625       3,381
   Interest on
   long-term debt   717         824      1,981       1,499
   Royalties        484         723        962       1,598
   Amortization and
      depreciation  217         239        659         536
   Other income    (611)       (379)    (3,544)     (1,845)
               ----------  ---------- ----------  ----------
                  3,765       3,289      7,596       7,197

Earnings (Loss) Before the
   Following       (463)      3,723       (655)      6,576

Income Taxes        (47)       (163)       (45)       (566)
Changes in Equity
Interest of
Associated Companies  -         (44)       (10)     (1,419)
               ----------  ---------- ----------  ----------
Net Earnings
  (Loss)       $   (509)  $   3,516   $   (709)  $   4,591


               ----------  ---------- ----------  ----------
Earnings (Loss)
Per Share     $   (0.01)   $   0.07  $   (0.01)   $   0.09

Weighted Average
Shares
Outstanding  54,116,249  50,859,295  52,130,383 50,829,637

Notes (cont'd)
     2. In July 1998, the Company purchased from IMA Resource
Corporation ("IMA") its 50 percent interest in the Minas Argentinas
S.A. ("MASA") joint venture with Oro Belle, in consideration of
2,200,000 shares of the Company with an ascribed value of $4,830,000.
forgiveness of amounts owed to MASA by IMA and a 2 percent NSR on
IMA's former interest in MASA. The excess acquisition cost over book
value acquired of $4,830,000 has been allocated to resource
properties.

     3. In April 1998, the Company monetized its gold loan.

     4. In September 1998, the Company sold by private placement
524,475 flow-through special warrants at a subscription price of $2.86
per flow-through special warrant resulting in net proceeds of
$1,408,000. The special warrants are exercisable at any time until
September 30, 1999, without further consideration, into flow-through
common shares of the Company.

Consolidated Statements of Changes in Financial Position for the Period Ended (expressed in thousands of Canadian dollars - unaudited)

Three months Nine months

ending ending

September 30 September 30

1998 1997 1998 1997 Operating Activities Net earnings (loss) $ (509) $ 3,516 $ (709)$ 4,591

Items not affecting cash - Changes in equity interest

of associated companies -- 44 10 1,419 Realized gain from a reduction

in the foreign operation -- -- (1,945) -- Depreciation and

depletion 9,661 6,252 17,270 10,743

---------- --------- -------- --------

9,152 9,812 14,626 16,753 Changes in non-cash

working capital (3,240) 722 (3,394) 5,803

--------- -------- -------- --------

5,912 10,534 11,232 22,556

--------- -------- -------- -------- Financing Activities

Repayment of

long-term debt (4,442) (3,673) (8,558) (7,310) Proceeds from

long-term debt -- -- -- 3,851 Issue of share capital

for cash 202 -- 202 267 Issue of flow-through

special warrants 1,408 -- 1,408 -- Issue of share capital

for the acquisition of

the remaining interest

in Oro Belle Resources

Corporation -- -- 2,101 -- Share capital reserved to

acquire balance of the

Minas Argentinas S.A.

joint venture -- -- 4,830 -- Repurchase of

treasury stock (59) -- (118) --

-------- --------- ------- --------

(2,891) (3,673) (135) (3,192)

Investing Activities

Resource assets (3,710) (7,479) (5,947) (26,164) Business acquisitions

(Notes 1 & 2) -- -- (7,976) -- Other assets

(876) -- 2,816 (264) Investments -- (640) -- (929)

-------- -------- ------- --------

(4,586) 8,119 (11,107) (27,357)

-------- -------- ------- -------- Change in Cash (1,566) (1,258) (11) (7,993)

Cash - Beginning of Period 41,636 45,644 40,081 52,379 Cash - End of Period $ 40,070 $ 44,386 $ 40,070 $ 44,386