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Gold/Mining/Energy : Golden Eagle Int. (MYNG) -- Ignore unavailable to you. Want to Upgrade?

To: Savant who wrote (3040)	5/23/1998 5:45:00 PM
From: Savant	Respond to of 34075

(history) Based on this favorable report, along with other pre-existing reports on the Tipuani area, the Registrant formed a majority-owned Bolivian subsidiary, Golden Eagle Bolivia Mining S.A. ("GEBM") in January 1996, of which Registrant initially owned 74% and later acquired an additional 19% from its Bolivian partners, for a total of 93%. On January 25, 1996, GEBM entered into an agreement with United Cangalli Gold Mining Cooperative, Ltd. ("UCL"), a Bolivian cooperative, for the rights to explore and mine an area consisting of 11 concessions along the Tipuani River, covering an area of 2,004 hectares (4,810 acres) for a 25- year period with an option for an additional 25 years. While binding according to the Company's counsel in Bolivia, this contract was not "protocolized" (recorded) with the Bolivian Notary of Mines. Registrant's directors elected to form a new majority-owned Bolivian subsidiary, Eagle Mining of Bolivia, Ltd. ("EMB"), in October 1996 to hold the concession interests. Registrant owns 84% of EMB; Registrant's former president, Mary A. Erickson, owns 3%; and Rene Velasquez owns 13%. EMB subsequently assumed GEBM's contract rights and proceeded to renegotiate the contract with UCL, which was protocolized with the Notary of Mines in La Paz on November 11, 1996. The new contract provides for a gross royalty interest of 18% in gold production to UCL and commits EMB to complete first-phase exploration and open one work front, in addition to the Cangalli shaft, by April 20, 1997; to open two additional work fronts by December 6, 1997; and to invest a minimum of $3 million in the project. Management is working to meet its contractual commitments of April 20, 1997 and December 6, 1997, as well as the $3 million commitment. 7 <PAGE> In addition, EMB is obligated to provide to UCL $200,000 for reduction of UCL's prior obligations: $100,000 in the form of a loan and $100,000 in the form of a grant. EMB has loaned the entire $100,000 obligation to UCL as of December 31, 1996, with terms which allow EMB to control the repayment of the loan out of production on a "reasonable" basis which will not unduly impact UCL's percentage of participation. As of March 31, 1997, EMB had also met more than 16% of its grant obligation to UCL, and had confirmed the finalization of the grant payment by the end of the 2nd quarter of 1997, which term had been confirmed as acceptable by UCL. As of March 28, 1997, GEBM continues to be the operator of the Cangalli mining prospect; however, EMB will assume operations in the Second Quarter 1997. QUISAS this has changed, S>