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Gold/Mining/Energy : Vulcan Minerals - C.VUL -- Ignore unavailable to you. Want to Upgrade?

To: Round Table who wrote (124)	5/29/1998 9:05:00 PM
From: Ciao	Read Replies (1) \| Respond to of 415

Vulcan Minerals Inc. Update St. John's, Newfoundland - Vulcan Minerals Inc. (the company, ASE:VUL) is pleased to advise that its onshore western Newfoundland petroleum exploration program is proceeding very well. The company has received the final processed seismic data from its recent seismic program on the Flat Bay permit. The quality of the data was very good and preliminary interpretations are consistent with the company's exploration model. Several drill targets have been identified. This data has been integrated with previous stratigraphic test hole results, gravity, magnetic, and geologic data to provide maximum exploration control prior to a drilling program. At least one well will be commenced this summer to test the area. The Flat Bay permit comprises 30,000 hectares and has an initial term of five years expiring in 2001. The present focus of exploration covers only a small portion (approx. 4,000 hec.) of the permit. Pursuant to a Farmout Agreement dated September 24, 1997 between London Resources Inc. and Vulcan Minerals Inc. Vulcan was to have commenced the drilling of a well on the Flat Bay permit by July 11, 1998 to earn a 50% working interest in the permit. Vulcan owns 25% of London Resources Inc., a private company. Due to the longer-than-expected pre-drilling exploration phase and permitting, the companies have agreed to amend their Farmout Agreement whereby Vulcan now has until December 1, 1998 to commence drilling its earn-in well. It is Vulcan's intent to commence drilling this summer. The company is in the process of hiring an engineering consultant to design and implement a drilling program. The company is confident that its extensive pre-drilling exploration efforts will enhance the prospects for its initial drill target. As well the company, in addition to having the petroleum rights, has now staked with London Resources Inc. (50/50) the mineral rights to the proposed drill location and surrounding area. With respect to the Alberta diamond play, the company has hired an Alberta geologic consulting firm to assess the properties and recommend an exploration program. The company plans to carry out exploration this summer to be followed by drilling where warranted and subject to financing. The company owns 100% interest in approximately 2.1 million acres of northern Alberta that have potential to host diamondiferous kimberlites similar to the recent diamond discoveries of Ashton Mining of Canada. The company is actively seeking joint venture partners for its Carbonear (zinc-lead) and its Goose South (titanium-copper-nickel) projects. Exploration plans will be announced when available. The investor relations agreement entered into by the company and Round Table Management Limited on March 1, 1998 has not been approved by the Alberta Stock Exchange and the agreement has been terminated. The company is reviewing the acquisition of alternate investor relations services. The financing agreement with Yorkton Securities (see news release of February 5, 1998) is progressing, however instead of utilizing an exchange offering prospectus we are required to file a full form prospectus. This has lengthened the financing process. The preliminary prospectus should be finalized shortly.