Prime Resources Group exploration drilling at Eskay Creek extends Nex and HW Zones

Business Wire, July 26, 1996

VANCOUVER, British Columbia--(BUSINESS WIRE)--July 26, 1996--Prime Resources Group (TSE, VSE: PRU) Prime Resources Group Inc. ("Prime") today reported that Phase I of this year's surface diamond drilling program at Eskay Creek has been completed. The program, designed to test for extensions to the Northeast Extension (NEX) and Hanging Wall (HW) zones, has been successful in intersecting ore grade gold and silver mineralization.

A total of 17 surface holes (2,740 meters) have been drilled to test the boundaries of the NEX and HW zones discovered during earlier drill programs. Results to date have been positive. In addition, the intercepts show significant base metal enrichment (primarily lead and zinc), with 11 of the 17 drill holes showing encouraging gold and silver mineralization, and are uniformly low in deleterious elements as compared to the main 21B ore zone.

Holes C96-761 and C96-762 returned the most notable results of the program since they were located more than 110 meters (360 feet) to the northeast of the previously defined limits of the NEX resource.

Assay results from the 11 holes with significant intercepts follow: