International Gold Resources Corp. signs exploration agreement with Echo Bay to cover three Burkina Faso Concession areas

Business Wire, June 6, 1995

TORONTO--(BUSINESS WIRE)--June 6, 1995--International Gold Resources (TSE:IGC) ("IGR") announced Tuesday that it has entered into an agreement to expand its existing Ghana Joint Venture to include three new concession areas in Burkina Faso, namely the Poura Concession, the Youga Concession and the Tamberi Concession.

Under the terms of the amending agreement the budget has been expanded by US$6 million to cover these three new areas of which US$2.5 million represents an additional firm obligation.

The Poura Project which is an active underground operation will be assigned to Echo Bay to manage upon completion of ongoing due diligence. It is the intent of the Joint Venture to develop sufficient new reserves, both underground and surface, to justify present design levels of production in the range of 75,000 ounces of gold per year.

In addition to the Poura Project, drilling has commenced on IGR's Youga Concession to test two zones of gold mineralization and a drilling program is being planned for the Tamberi Concession.

IGR's agreement with Echo Bay is consistent with its philosophy to bring in industry partners on its exploration projects in West Africa, while using its financial resources to advance its two development projects being the Humbug Project in Idaho and the Bibiani Project in Ghana. Proceeding in this fashion will give IGR shareholders the ability to participate in new potential discoveries while at the same time avoiding equity dilution.

IGR's management is particularly pleased that it has been able to maintain its partnership arrangement with Echo Bay on its three Burkina Faso properties, all three of which have good potential to add reserves and in the case of Poura, to add near term production.

IGR is a Canadian public company whose shares are listed on the Toronto Stock Exchange (symbol "IGC").

CONTACT: Stephen R. Dattels, 800/396-5188 or 416/947-9208

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Daniel C. Idzal, 713/654-3004