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Gold/Mining/Energy : Naxos Resources (NAXOF) -- Ignore unavailable to you. Want to Upgrade?

To: W.F. Schwertley who wrote (16677)	10/15/1998 6:15:00 PM
From: Kim W. Brasington	Read Replies (2) \| Respond to of 20681

FOR: NAXOS RESOURCES LTD. FOR FURTHER INFORMATION CONTACT INVESTOR RELATIONS: Jeff Sharp (913) 894 - 8509 Russell Smith (603) 891 - 5743 FOR IMMEDIATE RELEASE #98-27 Vancouver, British Columbia – October 15, 1998 - Naxos Resources Ltd (O.T.C. Bulletin Board: NAXOF), announced in News Release 98-7, dated March 18, 1998, that it was going to be following two approaches in respect to the Franklin Lake project. The first being the conventional fire assay work being advocated by Ledoux & Company and the second being the more non-conventional methodologies. Since this News Release, work on both fronts has been actively pursued. In respect to the conventional approach, the 1998 drill program was commenced involving rigorous protocols in respect to chain of custody and assay procedures. Assays were received from Ledoux & Company and, finally, the results of the assay audit were announced in News Release 98-20, dated July 16, 1998. Sanguinetti Engineering was employed with Klienfelder to supervise the drill program. In this respect, the Company has received a report on the 1998 drill program at Franklin Lake Property prepared by Michael H. Sanguinetti, P.Eng., and Paul Reynolds, P.Geo. Their conclusions are based only on the previously released data from the assay audit, conducted by the personnel from Knight, Ledoux, Rocky Mountain Laboratories and Analytical Solutions, Ltd. These results were based on material which came from the 1998 hollow stem auger drill program. Testing was done by conventional, standard fire assay. No additional samples from any other areas were examined, nor was any non-conventional assay methodology applied to these materials. Mr. Sanguinetti concluded the following, “The failure of this program to demonstrate any economic gold values by repeatable, conventional, assay methods leads us to the conclusion that there are no economic gold values present in any material within the area of the Franklin Lake playa drill tested in the 1998 program. No further work or expenditures are recommended for the Franklin Lake property.” This confirms the opinion and position of the Company, at this time, that the Franklin Lake property cannot be developed using conventional methodologies. We are presently pursuing the second approach, as set out in News Release 98-7, investigating non-conventional technologies through our funding of Johnson-Lett to develop a methodology which can be applied to the site. In addition, the Company is funding two separate groups for analysis of the Company's ore by way of a bromide leach process. To date, preliminary work is encouraging. The Company currently has approximately $1,000,000 with which to continue research and development on the Franklin Lake property and to examine other potential mining opportunities. The Company is aggressively cutting expenses and will continue to sell off non-essential assets. As well, the Company wishes to announce the appointment of Barry Riback as an additional Director as of August 25, 1998. ON BEHALF OF THE COMPANY NAXOS RESOURCES LTD “Signed” Sidney W. Kemp President All forward-looking statements made by Naxos involve material risks and uncertainties and are subject to change based on factors beyond Naxos' control. Accordingly, Naxos' future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, without limitation, those described in Naxos' filings with the United States Securities and Exchange Commission. Naxos does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.