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Gold/Mining/Energy : SOUTHERNERA (t.SUF)

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To: Valuepro who wrote (1988)9/2/1998 4:12:00 PM
From: RBMac   of 7235
 
Back Lake Project, NWT Canada, Update

KALAHARI RESOURCES INC. ("KLA-V")SOUTHERNERA RESOURCES LTD ("SUF-T;SOARF-L")-
Back Lake Project, NWT Canada, Update

Albert W. Applegath, President of Kalahari Resources Inc. (the"Company"), is pleased to announce
that the following has been receivedfrom our joint venture partner, SouthernEra Resources Limited:

Back Lake Project Update, NWT, Canada

A summer exploration program commenced on the Back Lake project onAugust 5, 1998.

A till sampling program has been completed to further delineate three(3) weak kimberlite heavy mineral
indicator trains in order to locate theirup-ice primary kimberlite sources. A total of 396 till samples
werecollected during this program. All laboratory processing of the tillsamples should be completed by
March, 1999.

The primary focus of the Back Lake project over the next ten (10)months will be to locate the primary
kimberlite sources of the "Yuryi"kimberlite float located on the shore of Munn Lake and the Margaret
Lakekimberlite heavy mineral indicator train. The "Yuryi" kimberlite float hasreturned 226 diamonds
from 581.29 kilograms of processed kimberlite.Sixty-two (62) diamonds are greater than 0.5mm in
their largest dimension.The largest diamond is 0.12 carats, with one (1) 0.03 carat and three (3)0.01
carat diamonds recovered.

The primary kimberlite sources of the "Yuryi" kimberlite float and theMargaret Lake kimberlite heavy
mineral indicator train are believed tooccur in Munn and Margaret Lakes, respectively.

To date, geophysical surveys covering Munn and Margaret Lakes havefailed to define high priority
targets whose geophysical signatures areindicate of kimberlite pipe intrusions. This suggests that the
kimberlitepipes could have either no or subtle geophysical signatures.

There are up to twenty (20) geophysical targets yet to be drill testedin the Munn Lake/Margaret Lake
areas.

An attempt to locate the kimberlite pipes utilizing a sonic drill tocollect till samples from the bottom of
Munn and Margaret Lakes willcommence mid January 1999. The till samples will be processed for
therecovery of kimberlite heavy mineral indicators in order to track the Munn(Yuryi kimberlite float) and
Margaret Lake indicator trains from theshoreline, in an up-ice direction, until an up-ice cut-off is
established.This will define and minimize the kimberlite pipe search area within thetwo (2) lakes.

Core diamond drilling will be conducted from March to May, 1999 totest subtle ground geophysical
targets defined during spring 1998 and testany positive results returned from the sonic drilling till
samplingprograms.

A total of Cdn$1.2 million will be spent on the Back Lake propertyfrom July, 1998 to June, 1999.TEL:
(604) 669-3332

Albert W. Applegath, President

______________________________________

(c) Corporate Dissemination Services Inc. All rights reserved.

Tel:(604) 689-1101

Fax:(604) 689-1106

RapidFAX (tm) - To get the NEWS as it happens, call (604) 689-3041.
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