Rock Resources News Release!!!!
For immediate Release: October 20,1997
CORPORATE UPDATE ROCK RESOURCES -RKR-VSE
EXPROPRIATION COMPENSATION CLAIM:
Background
In July 1995 the provincial government of British Columbia (in the process of creating 80 new provincial parks) expropriated numerous mineral claim blocks in the Province of British Columbia. At that time the Province of British Columbia represented that affected parties would receive FAIR COMPENSATION.
Rock Resources Inc.s only asset at that time was a group of 4 mineral claim blocks( the Amber Property) located in the south eastern interior portion of the province.
The creation of the "Goat Range Provincial Park" through the expropriation process rendered Rock Resources Inc.s AMBER Property valueless.
From July 1995 through January 1996 Rock Resources went to considerable time, effort and expense to prepare the necessary valuation reports and back-up support to facilitate Rock Resources request for "fair Compensation.
Recent Events
In a July 1997 article the Financial Post reported that the Provincial Government of British Columbia had reached a comprehensive settlement package (totalling 166 million dollars) with Royal Oak Mines for mineral claims that had been expropriated for the creation of a provincial park.
In a September 1997 newspaper article the Vancouver Sun reported that the Province of "B C" must pay $3.5 million penalty to mining firm" for mining interests expropriated for the creation of a provincial park. This "penalty" which was for "unreasonable delay" was in addition to the $3.9 million dollar compensation award.
Summary
Given the current framework, Rock Resources believes that a negotiated "fair compensation" package is achievable in the short term. If the chance is not achievable in the short term Rock Resources will have no alternative but to proceed with a settlement claim(currently being drafted by our legal counsel) through the court system.
Rock Resources presented (in good faith) our complete valuation documentation to the Government of British Columbia in January/February 1996. As no attempt was made by the government of B.C. to settle our claim, on April 15,1996 Rock Resources delivered a written request for compensation in the amount of $15,000,000.
In determining the amount of $15 million dollars Rock Resources took into account the evaluation reports of an Independant Consulting Geologist, a KPMG letter report, the time that had elapsed since the expropriation, the future potential of the property and lost opportunity cost. Assays taken from underground galena-sphalerite mineralized veins on the Amber Property ranged up to 61% lead, 33% zinc, 33 ozs/ton silver and up to 2.18 oz/ton gold on pyrite mineralization.
Assays taken from trenching ranged in quartz veins up to 18%Pb, 13.5 oz/ton silver and 11.8 oz/ton gold.
CURRENT EXPLORATION FOCUS
Given the exploration potential of Rock's Coiron property in Northern Chile, the company has decided not to pursue further the joint venture agreements previously entered into with respect to Indonesia and Labrador.
On Behalf of the Board of Directors:
Thomas J. Kennedy, B.Comm., LL.B
President
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