**STEPPE GOLD TO ACQUIRE ABYZ AND LENINOGORSK***
Website: steppe-gold.com
Steppe Gold Resources Ltd announces that has it has agreed to buy Goldbelt International Ltd. from Goldbelt Resources. Goldbelt International has a 50% interest in the Leninogorsk gold tailings project and a 60% interest in the Abyz gold - base metal deposit. These properties are both located in Kazakhstan and have been the subject of extensive engineering and feasibility studies by Goldbelt.
The consideration payable by Steppe Gold will be US$1 million to be satisfied by the issue of a convertible note. This note may be converted by Goldbelt into 4,000,000 shares of Steppe Gold at any time and at the option of Steppe after completion of satisfactory due diligence in regard to the project financing that Steppe has arranged for the development of its Mizek project. In addition, Goldbelt will retain a 2% NSR on the production of Abyz in excess of 4.5million tonnes. The 4,000,000 shares to be issued on conversion of the note will consist of 3,000,000 shares with a 12 month hold period and 1,000,000 shares to be issued as Special Warrants which will have a 24 month hold period unless otherwise cleared by prospectus issued prior to expiry of the hold period.
Closure of this transaction is scheduled to occur on or before May 15th 1998. Conditions precedent to closure are completion of legal and technical due-diligence satisfactory to Steppe Gold, the approval of Goldbelt shareholders, regulatory approval and other matters. Conversion of the Steppe Gold Note into common shares in Steppe Gold is conditional upon the conclusion within 4 months of legal and technical due-diligence satisfactory to Standard Bank of London in relation to the Mizek loan and related financial facilities and in the event that this condition is not met the Note may be converted, at Goldbelts' option and in its entirety, into 100% of the shares in Goldbelt International.
John Menzies, President of Steppe Gold, said "the Leninogorsk gold tailings re-treatment project with a well defined 2.4 million ounce gold resource has a completed feasibility study and project permitting well advanced. This satisfies our corporate objective of near term production and cashflow capability for new acquisitions. Abyz lies close to the Mizek gold project and the large Kosmurun and Akbastau base metal deposits which are already controlled by Steppe. Abyz complements our existing resource base in the region by adding a defined resource with identified exploration targets."
Mr Menzies further commented that "The acquisition of these projects confirms our confidence in our ability to develop Steppe into a significant mining company operating in the mineral-rich central-Asian country of Kazakhstan."
Signed,
John Menzies, President
On behalf of the corporation.
For further information contact:
John Menzies, PresidentRobert Bell, CEO
Office: (604) 689 7837 Email jmenzies@istar.ca
Fax: (604) 691 1752 Website: steppe-gold.com
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