Ecuadorian Signs Letter Of Intent With Zappa For 51% Interest In Guadalupe Concession At Gaby

Business Wire, April 5, 1995

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--April 5, 1995--Ecuadorian Minerals Corp. ("EMC") is pleased to announce that it has negotiated an option to acquire an undivided 51% interest in the Guadalupe exploration concession owned by Zappa Resources Ltd. ("ZAPPA": ZPA.V).

This concession is contiguous with part of the southern boundary of EMC's 100%-held Gaby gold-porphyry property (1106 hectares) in the Ponce Enriquez Mining District of southern Ecuador.

Under the terms of a Letter of Intent, EMC will acquire the 51% interest, and become operator, by paying US$40,000 and issuing 250,000 common shares of EMC to Zappa upon signing of a definitive option agreement; by incurring work commitment expenditures of US$3 million over a 3 year period (US$0.6 million, $1.0 million and $1.4 million in years one, two and three respectively); and by issuing common shares of EMC with a market value of US$250,000 on the first anniversary of the date of signing of the definitive option agreement.

The option agreement is subject to regulatory approval.

The 112 hectare exploration concession covers part of the southern extension of EMC's main Gaby gold deposit which contains a recently reported preliminary gold resource estimate of 1.6 million ounces, still open in several directions.

In January, 1995, Zappa completed a 13 hole, approximately 8,700 feet core drilling program over a large 400 ppb soil gold geochemical anomaly, covering 5,000 feet by 1000 feet, where results from extensive trenching reported gold intervals of 315 feet at 0.033 oz/t and 374 feet at 0.024 oz/t.

The drill holes intersected widespread gold mineralization and included gold intercepts of 525 feet at 0.041 oz/t (hole 94-12), 177 feet at 0.043 oz/t (hole 94-2) and 157 feet at 0.028 oz/t (hole 94-10).

The geology, style and tenor of gold mineralization on the Guadalupe concession complement those found on EMC's main Gaby deposit and this acquisition significantly increases and enhances the overall known gold resource at Gaby, which has the potential to host a world-class gold deposit.

An aggressive exploration program, including additional drilling, is planned to further evaluate the overall extent of gold mineralization on the combined properties.

ON BEHALF OF THE BOARD

Stephen J. Kay President and C.E.O. -0- NOTE: Location map available from the Company at the phone number listed above. -0- The Toronto Stock Exchange does not approve nor disapprove the information contained in this News Release.

CONTACT: Ecuadorian Minerals Corp.

Jim Kasten, 602/483-9932, 602/483-9926 (Fax)