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May 13, 1998
Agata Project, Philippines, at the Drill-Ready Stage
Tony Climie, President of Mindoro Resources Ltd. ("Mindoro"), announces that MRL Gold Phils., Inc. ("MRL"), a wholly-owned subsidiary of Mindoro, has completed Phase I evaluations, including geochemical and geological surveys, on its Agata Gold Project, Surigao Gold District, Mindanao Island, Philippines. Extensive gold showings, prospects and anomalies have been outlined by this work.

Geology consists of multi-phase intrusives emplaced into clastic limestones and ultramafics. Exploration focus has been on the Lao and American Tunnels Prospects, where erosion has exposed the mineralized contact between intrusives, limestone and ultramafics. In addition, economically interesting nickel and cobalt values have been obtained from laterite developed on the ultramafics.

A total of 1,026 soil samples were collected from the B horizon and submitted to McPhar Geoservices (Phils.) Inc. (ISO 9002 - accredited). They were sieved to -80 mesh, and the -80 fraction was analysed for gold, copper, lead, and zinc. Gold analyses for soils and rocks were performed by fire assay (gravimetric or atomic absorption spectrometer finish) on a 30 gram sample, with a lower detection limit of 10 parts per billion (ppb). One standard sample and one reagent blank sample were included in each 30 sample charge. Every tenth sample was routinely rechecked, with results varying within normal limits.

Gold soil values ranged from less than 10 ppb to 2,300 ppb (1,000 ppb equals 1 gram per tonne (g/t)), and averaged 44.6 ppb. Copper values ranged from 5 parts per million (ppm) to 1,100 ppm, and averaged 105 ppm. Results for nickel and cobalt laterite samples ranged from 4,240 ppm to 10,450 ppm for nickel (overall average 7,119 ppm), while cobalt ranged from 226 ppm to 1,831 ppm (overall average 784 ppm).

Abundant gold occurrences are associated with the contact between intrusives, ultramafics and limestone. The favourable contact zone is exposed over approximately 500 metres, but extends beneath overlying limestone and ultramafics to the north, south and west. The area has been the site of extensive gold mining by high-graders and there are at least thirty inactive and active pits, shafts and adits. The soil geochemical survey defined a semi-continuous gold anomaly (greater than 50 ppb) of approximately 500 metres by 250 metres covering the erosional window. Copper (maximum 1,100 ppm) and arsenic (maximum 380 ppm) anomalies are associated. The anomaly includes a zone of 225 metres by 100 metres exclusively within limestone, with values up to 2,300 ppb gold ("Limestone Target"). Additional, lower order soil gold anomalies occur elsewhere in the limestone and ultramafics.

Gold mineralization is associated with quartz-carbonate-sulphide stockworks, sulphide disseminations and stringers. Coarse, crystalline gold occurs on limonitic fractures in the intrusive and is interpreted to be supergene gold redeposited through weathering and remobilization from primary sulphide-associated mineralization.

Surface rock channel sampling returned values up to 2.8 g/t gold over five metres from limonitic and altered limestone within the Limestone Target. This, and surrounding soil anomalies, are interpreted as leakage from a mineralization source at depth related to the intrusive contact.

Approximately 300 metres north of the Limestone Target, high-graders are mining gold from the Assmicor Mine along the contact zone between the intrusive and ultramafics. Recovered grade is in the order of 13 g/t gold, but losses to tailings are likely high due to primitive recovery techniques. Underground channel sampling of walls in the Assmicor Mine by MRL gave encouraging results, averaging 4.5 g/t gold along the entire 28 metres of the present winzes and tunnels. Geometry of the mineralization, and hence significance of these results, is not understood at this time.

There are two interpreted mineralization targets within the Lao Prospect:

mineralization ponded along the intrusive contact with the impermeable ultramafics stockwork, replacement and, possibly, skarn mineralization, associated with the intrusive/limestone contact.
The Limestone Target is at the drill-ready stage. It is planned to further evaluate the mineralization encountered in the Assmicor Mine by excavating cross-cuts on both sides of the underground workings to test grade, lateral (two-dimensional) extent and to determine geometry of the mineralization.

Gold mineralization is associated with a contact between intrusives and ultramafics exposed in an erosional window of approximately 500 metres by 300 metres. There are nine active and inactive tunnels exploiting gold both above and below the contact. The American Tunnels are being actively mined by high-graders. There are no reliable production records, but extracted grades up to 200 g/t gold are reported by local miners from selective mining of narrow, high-grade zones. Losses to tailings are likely high.

A soil gold anomaly (greater than 50 ppb) of 200 metres by 150 metres has been defined coincident with the erosional window. This anomaly is considered subdued and restricted due to the masking effect of overlying ultramafics.

Gold mineralization is associated with quartz-carbonate-sulphide stockworks within the intrusives and ultramafics, and with disseminated sulphides in silicified zones. Limited rock sampling has been carried out to date. Grab samples up to 32 g/t gold have been obtained from the American Tunnel. The favourable mineralized contact zone is likely to extend to the north, south and east under ultramafic rocks. It is planned to systematically map and sample the underground workings. Main objective is to define a bulk-tonnage gold resource within 50 metres on either side of this contact zone.

Laterite nickel and cobalt mineralization is associated with a peneplain surface developed on the ultramafics. Five old exploratory pits completed by a Filipino nickel company were located and resampled, returning an average of 0.7 percent nickel and 0.07 percent cobalt over a total aggregated pit depth of 25 metres. An evaluation of the economic potential is planned.

Mindoro has elected to proceed to Phase Two on Agata, Tapian and Mat-I and, in accordance with the Memorandum of Agreement with Minimax Mineral Exploration Corporation (Minimax), has issued 150,000 common shares in Mindoro to Minimax. MRL may earn a 75 percent interest in all projects.

Mindoro is a well-financed, Canadian mineral exploration company focussing on gold and gold-copper exploration in the Asia Pacific region and operates projects in the Philippines, Myanmar and Indonesia. Mindoro has 13,515,000 shares issued and outstanding and working capital of approximately $2,500,000.

The Alberta Stock Exchange has neither approved nor disapproved the information contained herein.

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