16,664,925 shares issued and outstanding

Date: December 18, 1997

Millstream Mines Ltd. announces today that it completed on December 15th a private placement of 450,000 Units for its capital stock at a subscription price of $0.35 per Unit for an aggregate consideration of $157,500.00. Each Unit is comprised of one (1) common share and one (1) common share purchase warrant expiring in two years, exercisable in the 1^st year at $ 0.53 per share and at $ 0.60 per share in the 2^nd year.