European American Resources, Inc. Announces Letter of Intent With Homestake Mining Company

Business Wire, Oct 27, 1999

CLEARWATER, Fla.--(BUSINESS WIRE)--Oct. 27, 1999--

A Letter of Intent has been signed between European American Resources Inc. (OTCBB:EPAR) ("EPAR") and Homestake Mining Co. ("HM")(NYSE:HM) to enter into a definitive Earn-in Exploration and Joint Venture Agreement covering mineral claims owned and controlled by both EPAR and HM, to be pooled within an agreed Area of Interest at Prospect Mountain, Eureka, Nevada.

The Area of Interest is adjacent immediately south of Homestake's Archimedes/Ruby Hill low-cost, highly profitable, open-pit gold operation.

The Joint Venture will be operated through Management Committee with Homestake Mining Co. ("HM") initially contributing and expending as operator two million US$ (2,000,000US$) to earn a 51% interest in the joint venture. Subject to Management Committee approval, HM will carry out and finance a Feasibility Study to determine the economics of constructing and developing a mining operation to profitably produce gold and/or other metals from the Joint Venture property. During this period HM will be responsible for all State and Federal taxes, maintenance fees and advance royalty payments required to keep the joint venture property in good standing

Upon the project being taken to production as recommended by the Feasibility Study, HM, as operator of the joint venture, can earn up to a 70% interest.

Exploration work on property by HM will commence upon signing of the definitive Purchase and Joint Venture Agreement anticipated by both parties to be as soon as practically possible.

A spokesman for the company stated, that he believes the agreement is a perfect fit for both parties - HM could in the near future replace on going gold production from adjacent Archimedes operation and add new resources from the enlarged property base resulting from HM's acquisition of the Prospect Mountain joint venture position. EPAR, within the "alliance and/or partnership" with a world renowned operating gold mining company strengthens its corporate strategy to carry on future growth as an US based, precious metal resource company.

Disclaimer: In addition to historical facts or statements of current condition, this press release may contain forward-looking statements. The Company's ("EPAR") performance and financial results could differ materially from those reflected due to general financial, economic, regulatory, political conditions or additional factors unknown to the Company at this time, as well as more specific risks and uncertainties such as set forth in documents filed with the SEC. Given these risks and uncertainties, any or all of these forward-looking statements may prove incorrect. Current or prospective investors are cautioned not to place undue reliance on any such forward-looking statements. The Company has no intent, and disclaims any obligation, to update any such factors or forward-looking statements to reflect future events or developments.