To: topstock who wrote (430 ) 2/4/1998 6:53:00 PM From: Colin Myrholm Respond to of 822
Agau Resources - Alberta Diamond Property Exploration Update, Purchase of Eagle Mineral Claims Interest EDMONTON, ALBERTA--Agau Resources, Inc. ("Agau") and 695491 Alberta Ltd. ("Vendor") report that a ground crew has successfully completed a magnetometer survey of a number of sites on the Spirit Ridge property that were previously identified from satellite side radar imagery, aeromagnetics and airborne infrared photographs. Shallow soil samples were collected from eight of the most promising locations identified by the magnetometer survey. Olivine clays, an indicator that lava rock may be present, were encountered at four of the locations. A preliminary microscopic assessment by Agau found two possible kimberlite indicator minerals from one location and a single possible indicator mineral from a second location. The samples will undergo detailed analysis prior to determining actual targets for further extensive exploratory work. Results of the soil sample analysis are expected within the next month. The Spirit Ridge property, located in the Peace River District of Alberta, was the subject of a January 19, 1998 news release wherein Agau and the Vendor announced they had entered into a letter of intent whereby Agau will purchase mineral permits on approximately 21,000 acres and obtain an option on an additional nine townships, approximately 200,000 acres. The definitive agreement is expected to be executed shortly. The area in which the property is located is currently subject to intense diamond exploration activity. Agau also announces that effective January 23, 1998 Agau acquired a 25 percent interest in six mineral claims containing 5,331.9 acres, known as the Eagle mineral claims, located on the south shore of Tchentlo Lake, about 210 km north of Prince George, in the Omineca Mining Division of British Columbia. Consideration for the interest was $22,500, paid at time of closing, and a note for $35,000 payable in one year, without interest. Agau's wholly owned subsidiary, 722380 Alberta Ltd. ("722380") holds an option on the Eagle claims under which a payment of $22,500 was due to the vendor of the 25 percent interest on December 31, 1997 with further payments of $35,000 and $82,500 due on December 31, 1998 and 1999 respectively. Those payments have now been eliminated. In conjunction with the purchase by Agau, option payments due to the owner of the remaining 75 percent interest in the Eagle claims were reduced and rescheduled as follows: /T/ Previous Revised -------- ------- December 31, 1997 $ 67,500 $ 22,500 December 31, 1998 $105,000 $ 40,000 December 31, 1999 $247,500 $ 65,000 December 31, 2000 - $247,500 /T/ Agau is a Canadian mineral exploration company based in Edmonton with a listing on The Alberta Stock Exchange. -30- FOR FURTHER INFORMATION PLEASE CONTACT: Agau Resources, Inc. Einar Myrholm President (403) 413-9392 THE ALBERTA STOCK EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED THE INFORMATION CONTAINED HEREIN.