Gold Reserves Continue to Rise at San Francisco MineRecent Drilling Increases Total to 819,000...

TORONTO--(BUSINESS WIRE)--July 15, 1997--Geomaque Exploration (TSE:GEO.) Geomaque Explorations Ltd. is pleased to announce that drilling up to April 30, 1997 has increased ore reserves to 819,000 ounces with a strip ratio of 2.3:1 at its 100 percent-owned San Francisco gold mine in Sonora, Mexico.

Since feasibility, Geomaque has increased reserves at the San Francisco Mine by 312 percent from 199,000 ounces (see bar chart below). At December 31, 1996, reserves at the San Francisco Mine were 706,000 ounces. This reserve estimate was conducted by Independent Mining Consultants Inc. of Tucson, AZ. -0-

The makeup of proven and probable reserves is as follows:

              Tonnes       Grade (g/t)    Ounces
              --------     -----------    -------
Crusher feed  23.3 million    1.02        766,100
Mine run       4.6 million    0.35         52,700
Total         27.9 million    0.91        818,800

-0-

The bulk of drilling included in the new reserves took place to the north of the main pit. Drilling also continued to the east and west of the main pit, and will resume this fall down dip to the northwest and along strike to the east and west. With the new reserves, the designed pit at the San Francisco Mine is 1,100 metres long, 650 metres wide and 222 metres in depth, occupying a total area of approximately 52 hectares.

"These results are a continuation of the success we have had in adding low-cost reserves since Geomaque began work at the San Francisco deposit," said Phillip Walford, Vice-President, Exploration. "Taking into account material we have already mined, a total of 900,000 ounces of reserves have been proven up, and significant potential for further increases exists as the deposit remains open along strike to the east and west."

Geomaque Explorations Ltd. is an international gold mining and exploration company which is producing gold from its 100 percent-owned San Francisco Mine in the State of Sonora, Mexico, and exploring for gold in Latin America.

CONTACT: Geomaque Explorations Ltd., Toronto

Sean Stokes, 416/956-7470