Panther Resources Announces Underground Exploration Results on Crosscuts

Business Wire, July 10, 1998

VANCOUVER, British Columbia--(BUSINESS WIRE)--July 10, 1998-- Marshall Smith, Project Manager for Panther Resources Ltd. would like to present the following information and update on crosscut No. 400, Level 4 on the La Verde property.

"The tunnel collared in mine block 3 about 15 metres to the southeast of the collar of N4NEX drift. The drive advance on June 28 was just through the Block 2/3 fault and had extended about 1.5 metres into mine block 2.0.

"The left wall of the drift has large pebbles and clots of tetrahedrite with a few clasts of chalcopyrite set in normal La Verde sequence rocks. The visual grade of the left wall and half of the face is about 150 to 200 grams of silver and approximately 0.75% copper. This mineralization lacks clasts of adamellite. This is probably Unit 1 of the normal sequence. The drift will be turned to both the left and right-hand to cut the full interval of Unit 1 to the left and cross through Unit 2a, 2b and 3 on the right-hand side.

"The consequence of this intercept of significant mineralization is that the company has unraveled the offset fault system in the mine area and is able to predict the location of the extension of mineralized beds. Diamond drilling has intersected tetrahedrite and chalcopyrite about 120m below Level 4 and crosscut 41A has intersected the same sequence about 100 metres above crosscut 400.

"The oldest portion of the mine is in the area of Level 1 and 2 with a 180 metre strike length of previous mined mineralization. This is the surface expression of the zone located in Level 3.0 crosscut 41A. The current information indicates there are three horizons totaling about 15 metres thick with a strike of 180 metres and a depth of 220 metres. This zone defined only on two sides' gives a geological reserve of 1.8 million tonnes."

This is very significant for future production as it would give an extended mine life of over 12 years at 450 tpd. This strike of 180 metres is only a small part of the area between La Verde and El Mamut, which is highly prospective. "Considering that the occurrence of disseminated tetrahedrite-chalcopyrite (tth-cpy) along the same horizon suggests the possible existence of similar deposits along the 3,000 by 1,000 meter belt of favorable rock. The discovery of a similar orebody might account for another 2.0 to 3.0 Million tonnes." (Behre Dolbear).

"Based on this new exploration data, we are reviewing the possibility of forward-selling the silver production for the next five years to complement future financing needs," said Gordon Muir, Chairman and CEO. "We have also begun preliminary discussions with interested parties."

Panther Resources Ltd. is an international mining and exploration company with a primary focus on developing and acquiring operating silver mines in Mexico.

For further information please contact Sheila Whitman, Account Executive at Carl Thompson Associates at 800/959-9677 or contact the Company directly at 888/346-3453 or 604/689-5377. For more detailed information on the Company, please visit our web-site at www.pthr.com

Certain statements in this Corporate Update constitute "forward looking" statements within the meaning of section 21E of the U.S. Securities Exchange Act of 1934. Such forward-looking statements involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

CONTACT: Panther Resources, Ltd

Ph: 604/689-5377; Fax: 604/681-3585

Email: info@pthr.com

Website: www.pthr.com