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Gold/Mining/Energy : Golden Hemlock(GHE)

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To: Hugh M. who wrote (263)	7/29/1997 2:16:00 PM
From: GHE-Investor Relations	of 909

The initial drilling on Phase II was to put reserves achieved from Phase I on the Tres Amigos into the "drill proven" category. After Drill Hole #97-42, step outs of 100 metres on the southwest extension will begin. This drilling, over 1,100 metres of strike length, is expected to take one to two months with one drill. The second drill will be used to test the Rudolfo, La Prieta and Purisima Ridge zones, and will begin in the first week of August and continue through October. Drills are functioning well and work is proceeding. In conjunction with drilling, sampling and mapping will continue on a property wide basis. Results will be released as they become available.

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