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Gold/Mining/Energy : ARP - V Argentina Gold -- Ignore unavailable to you. Want to Upgrade?

To: robert azana who wrote (2281)	1/28/1999 1:55:00 PM
From: Gord Bolton	Read Replies (2) \| Respond to of 3282

NEWS quoteline.com NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS FOR: ARGENTINA GOLD CORP. VSE SYMBOL: ARP JANUARY 28, 1999 Argentina Gold Strongly Recommends that Shareholders do not Tender To Barrick's Bid; Management Confident of Receiving Higher Bids; Additional Results from Diamond Core Hole DDA1 VANCOUVER, BRITISH COLUMBIA--Additional Results from Diamond Core Hole DDA1 Show Continued Overall Substantial Increase in Gold Grade at Amable Target Argentina Gold Corp. (the "Company") is pleased to announce that it has recently executed a number of confidentiality agreements with major international mining companies, several of whom are scheduled to visit or have visited the Veladero site and/or data room. One such party is currently on site. We are confident there is a reasonable basis that a superior offer can emerge. The company has received further results from Diamond Core Hole DDA1 drilled at the Company's Veladero project in San Juan, Argentina. Results are available down to 174 metres. The mineralized intercept has increased to 105 metres of 17.87 grams per tonne gold and 72.34 grams per tonne silver, including 50 metres of 34.21 grams per tonne gold and 90.14 grams per tonne silver. Details of the partial results available on Hole DDA1 are in the following table. /T/ Hole Total Inter From To Gold Silver Gold Azimuth Angle Coor- Depth -val Equiv. dinates (x) (m) (m) (m) (m) (g/t) (g/t) (g/t) DDA1 (partial results) 234 105 69 174 17.87 72.34 32.23 270 -55 2407695 E including 50 81 131 34.21 90.14 6750442 N Elev: 4352 (x)50 g/t Ag = 1 g/t Au /T/ The objective of Hole DDA1 is to test the high-grade section intercepted by Holes 90, 80 and 85 which were drilled using a reverse circulation (RC) rig. The mineralization encountered by Hole DDA1 shows a similar distribution of high-grade mineralization as the ones observed at holes 80 and 90. This is encouraging as it indicates the possibility of achieving through further diamond drilling an overall increase in the already high gold grades at the Amable target. The early indications are that the diamond core drilling may provide a better conservation of the finer gold particles than reverse circulation drilling. In Hole DDA1, Hole 80 and Hole 90, the mineralized intercept shows high grade for an interval between 62 and 74 metres, with a central intercept with increased grades from 16 to 25 metres. The geometry of the mineralized horizon is very similar in all three holes, showing a typical subhorizontal correlation associated to water-table levels at the time of major gold deposition. As an illustration, the following table compares results from reverse circulation to diamond core drilling. The table shows that this tabular, high grade zone dips gently to the east, into the interpreted feeder zone associated with the North-South trending structure that controls the Amable system on the east. /T/ Hole 80 Hole DDA1 Hole 90 Elevation at mineralized section top 4303 4284 4270 bottom 4240 (open at 4240 (open at 4215 (open at depth) depth) depth) Grade - Long section (62m to 128m) (69m to 124m) (74m to 133m) 66m @ 8.23g/t Au 55m @ 30.75g/t Au 59m @ 6.82g/t Au 68.1g/t Ag 73.87g/t Ag 43.6g/t Ag Including Higher Grade (94m to 117m) (81m to 106m) (94m to 110m) 23m @ 13.91g/t Au 25m @ 56.63g/t Au 16m @ 16.37g/t Au 92.78 g/t Ag 63.32g/t Ag 68.06g/t Ag Long section grade increase vs DDA1 x 3.7 x 4.5 High grade section increase vs DDA1 x 4.1 x 3.5 /T/ Drilling continues at the southeastern extension of the Amable target and western extension of high-grade zone of Filo Federico as well a second hole is underway at the new Amable North target. A second diamond core hole is also in progress at the Amable target. Hole 105 (Amable), collared 50 metres east of Hole 90, is complete with assays pending. Hole 106 (Amable), collared 60 metres SSE of Hole 103, is also complete with assays pending. Hole 107 (Filo Federico), collared 50 metres southwest of Hole 104, is complete with assays pending. Hole 108 (Amable), collared 10 metres east of Hole 80, drilling vertical, is testing potential deep continuity of high grade zones. Hole 109 (Filo Federico), collared 50 metres SSW of Hole 72, is complete with assays pending. Hole 110 (Amable), collared 50 metres east of Hole 92 is underway. Hole 111 (Amable North), collared 50 metres east of Hole 100 is underway and is currently at a depth of 93 metres. DDA2 (Amable) is currently at a depth of 32 metres and is located 15 metres north of Hole 89 (drilling in an easterly direction at an angle of 75 degrees.) There are three reverse circulation rigs on site, one at Filo Frederico, one at Amable and one at Amable North. One diamond core rig is in operation on the Amable target and a second rig for Filo Frederico is being mobilized. Shareholders' Rights Plan The Company's Limited Duration Shareholders' Rights Plan was cease traded yesterday by the British Columbia Securities Commission and is no longer in force or effect. The Board of Directors of Argentina Gold strongly recommends that shareholders do not tender their shares. The Company is working diligently to achieve maximum value for shareholders. The ongoing exploration program has returned exceptional results illustrating the upside potential of the Veladero project and its value to shareholders. Please visit our website for maps and detailed information on the Veladero project. The website address is www.argentinagold.com Argentina Gold is the operator of the Veladero project holding a 60 percent interest. The Company's partner, Barrick Gold Corp., holds the remaining 40 percent. The drill samples are assayed by CIMM Labs of Chile using top quality control systems and interlab check assays. ON BEHALF OF THE BOARD Lukas H. Lundin, Director -30-