EXPLORATION 1997 — Aranlee buys mineral properties from KazMinCo

Vancouver-based Aranlee Resources (ARB-V), already active in Argentina, plans to expand its international property portfolio by acquiring a large

land position in central Kazakstan.

According to a letter of intent signed with Kazakhstan Minerals (KMC-T), Aranlee will acquire a 67% interest in Agadyr, a Kazakstani company with a 9,700-sq.-km exploration licence prospective for base and precious metals.

Under the terms of the letter, Aranlee will make cash payments totalling $700,000 and issue 2 million shares to Kazakhstan Minerals (also known as KazMinCo). Aranlee has also agreed to pay KazMinCo US$5 for every recoverable ounce of gold identified in a bankable feasibility study on the first deposit discovered on each property in the portfolio.

If Agadyr receives approval for an additional 2,000-sq.-km licence, known as Balkhash, Aranlee will issue another 200,000 shares and reimburse all of the expenses incurred by KazMinCo on the Agadyr exploration licence.

The two exploration licences, Agadyr and Balkhash, are 600 km northwest of Almaty, the capital city. A main highway, rail line and high-voltage power lines cut through the gentle topography of both concessions.

Aranlee says all the properties have gold and copper occurrences within 9-to-10-km-long mineralized trends. Surface samples have returned values ranging from 0.5 to 10 grams gold per tonne and up to 1% copper. A large porphyry copper deposit, the Miedniy Kounrad, lies just outside the Balkhash licence.

Aranlee also has a right of first refusal to acquire the 33% interest in Agadyr held by KazMinCo’s partner, Temenai.