Date: April 28, 1997

Very encouraging and exciting results were obtained with the ground based Max-Min Geophysical survey that overlapped the previous VLF survey. A Max-Min 200 meter coil spacing at frequencies of 3550 Hz and 1777 Hz with reading intervals of 25 meters gave plotted results enhancing the interpretation of the previous known conductors which indicated strong, wide conductor zones. Diamond drilling of 4,000 feet provided preliminary testing of some of these strong, wide conductor zones.

Geological logging of the Diamond Drill Core, assaying and geochemical analysis of drill core materials is ongoing. Results of these efforts are expected in about 3 to 6 weeks.

 The property consists of 28 leases and patented and 10 optioned mining claims, in a geological belt adjacent to the Porcupine Destor Fault. Previous operations report the continuation of sulphides below the 1,100 feet bottom mine level and suggest a lengthening, widening and grade improvement with depth. The company geologist Alex Po and consultant geologist Phil Brown, are of the opinion that the property could host a volcanogenic-massive sulphide (VMS) type deposit.

 The Company by means of flow-through share financing raised $280,000 @ a $0.50 unit price consisting of 560,000 shares and 560,000 ½ share purchase warrants to fund the Winter program on its Potter Copper/Zinc Property. Effective April 4, 1997, two (2) million issued warrants having a strike price of $0.75 expired. These warrants were part of the purchase package of Millstreams’ Czech Gold Deposits.

 The principle objective of Millstream Mines Ltd. is to enhance and develop known mineral properties to production potential. Millstream holds mineral claims or interests, directly or through wholly owned subsidiaries, in the Czech Republic, USA and Canada. MLSM has 15,542,425 shares issued and outstanding.