NAMIBIA RARE EARTHS INC V.NRE

Good Bye Ghana

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Where is that Internet Deal? Time for new management??? Norcan Resources Ltd. 7/16/99 - Norcan Mining Offer To Renew Pemenase Concession AMI RESOURCES INC ("AMU-V;AMIQF-L") NORCAN RESOURCES LTD ("NRE-V;NRCNF-L") - Norcan Mining Offer To Renew Pemenase Concession - For Period Of Two Years AMI Resources Inc. ("AMI") announces that Norcan Mining Corporation ("NMC") has received an offer from the Minerals Commission in Ghana to renew the Pemenase Concession for a period of two years subject to the payment of the requisite renewal fees of US$7,500 and the shedding of 50% of the previous area. NMC has also received an offer from the Minerals Commission to acquire a license on its application for an area to the south of the Adumasa Concession known as the Ankasi Concession. This license offer is for a period of two years and is subject to the payment of US$15,000 in accordance with Ghanaian Law. AMI also announces that Vista Mining Corporation ("Vista") has received an offer from the Minerals Commission in Ghana to renew the Adumasa Concession for a period of two years subject to the payment of the requisite renewal fees of US$7,500 and the shedding of 50% of the previous area. The Adumasa and Pemenase Concessions collectively referred to as the Adumasa Project, are strategically located on the Ashanti Gold Belt approximately 50 kilometers to the northeast of the Ashanti Gold Mine. As stated in the Wiley Report, the Adumasa Project's 1997 drilling program located significant mineralization in 5 of the 9 diamond drill holes drilled in the southern section of the Adumasa Concession. The best hole, VM97-7 intersected a mineralized section of 122 meters (405 feet) grading 1.65 grams gold per ton including a section of 49.1 meters (163 feet) grading 2.76 grams gold per ton. Individual samples within this intercept ran as high as 9.23 grams gold per ton over 1 meter and 7.45 grams gold per ton over 1.5 meters. Management believes this mineralization continues to the south therefore an application was made to acquire the concession directly to the south known as the Ankasi Concession. AMI as the Operator prepared an interim budget for the Adumasa Project, which included the renewal and licensing fees for all concessions. The Board of Directors of both NMC and Vista approved the interim budget for the on-going maintenance and licensing fees. Norcan Resources Ltd., a minority shareholder in both NMC and Vista, failed to advance its proportionate share of the approved budget and has been diluted to a 1% net profit interest in both NMC and Vista as per the Shareholders' Agreement. Norcan has invoked the arbitration provisions found in the Shareholders' Agreement between it and AMI governing the affairs of both NMC and Vista. AMI has taken the position that Norcan has failed to properly discharge its obligations to avail itself of the arbitration remedy found in such Shareholders' Agreement, and is proceeding on the basis set forth above. If Norcan is successful in securing a decision from an arbitration panel which varies the outcome of the budget process discussed above for either or both of NMC and Vista, and such decision is upheld by a court of competent jurisdiction as binding on AMI it is possible that Norcan will possess a minority interest in NMC and Vista greater than its 1% net profits interest. Regardless of the outcome of any arbitration panel, AMI currently controls and will continue to control the Adumasa Project. TEL: [phone] Dustin A. Elford, President FAX: [phone] ______________________________________ (c) Corporate Dissemination Services Inc. All rights reserved. Tel:[phone] Fax:[phone] RapidFAX (tm) - To get the NEWS as it happens, call [phone]. © 1999 StockHouse.com | Disclaimer