Summo Minerals; Final Feasibility Study Completed on the Lisbon Valley Project

Business Wire, June 20, 1996

VANCOUVER, B. C.--(BUSINESS WIRE)--Summo Minerals Corporation is pleased to announce the completion by Roberts & Schaefer Company of the Final Feasibility Study on the Lisbon Valley Copper Project, located in San Juan County, Utah. The study incorporated modifications to the Full Feasibility Study completed in August, 1995, including updated ore reserves, contract mining, lower acid and power costs determined by term sheets and negotiations with suppliers, and improvements to the crushing and conveying systems for the project. Operating and capital costs are secured within 5 percent.

The new project ore reserves stand at a total of 46.5 million tons grading 0.43 percent Cu at a strip ratio of 2.36:1. The project shows an after-tax Net Present Value of US$47.8 million at an average copper price of $1.15/lb. and a discount rate of 10 percent, with a total net income after taxes of US$104 million over the projected 10- year life of the mine. Straight pay-back is a little more than 2 years. The project remains robust at copper prices above $0.85/lb.

Total operating costs during the first full year of operation (1998) are estimated at $0.37/lb. copper. Total operating costs for the life of the mine are estimated at $0.60/lb. Total operating costs include amortization of the mining contractor's fleet for the life- of-mine, all royalty payment, reclamation costs and closure bonding, environmental monitoring, and marketing and insurance. The latter costs total $0.12/lb. of copper, and are often not included in statements of "cash" costs. Accounting for all life-of-mine capital expenditures adds another $0.15/lb. for an all-in cost of production of $0.76/lb. of copper.

N.M. Rothschild and Sons Ltd. are progressing on their due diligence for the US$30 million debt facility for project financing. Discussions are underway with several securities houses for an equity issue to provide the remaining US$20 million required for project financing and corporate working capital. All funding is anticipated to be in place by the time permits are expected to be issued in late September. Construction is scheduled to commence in October, with initial cathode production anticipated in July, 1997.

On behalf of the Board of Directors,

Gregory A. Hahn

President, C.E.O.

Both the Vancouver Stock Exchange and the Toronto Stock Exchange have not reviewed and do not accept responsibility for the adequacy or accuracy of this press release.

CONTACT: Summo Minerals Corporation

Clive Massey

Corporate Communications

604/687-7545

604/689-5041 (Fax)