Date: July 16, 1997 

Millstream Mines has received its assay results from the winter drill program showing mineralization in most holes. This mineralization while low grade confirms the interpretation by company geologists that holes 3, 4, 5 and 6 are in the known ore horizons. The hyaloclastic horizon known to host the ore bodies was intersected in four of the seven holes drilled, i.e. hole #5 intersected the hyaloclastic unit at 170 feet and was still in the unit at 350 feet for a true thickness of at least 100 feet. The highest result was a 1.5 ft. section which returned 1.47% copper. Assay results can be viewed in Millstream’s Toronto and North Bay offices.

 An independent third party geochemical analysis of the core was provided and it has been reported by consulting geologist K.D. Card that "most of the samples are geochemically similar to mafic volcanics that host major VMS deposits elsewhere in the Abitibi belt, for example Kidd Creek, Normetal and Horne". Also that "the mafic fragmental host of the Potter mineralization is chemically similar to other volcanic sequences that host major VMS deposits and there have been metasomatic gains and losses, notable to MgO and Na2O but possibly of other elements such as CaO as well". Previous operations of the property reported the continuation of the sulphides for at least 300 feet below the bottom 1,100 feet mine level and suggest a lengthening, widening and grade improvement with depth. Possible resources reported by E.I. Bettiol, P. Eng. Below the 1,100 feet mine level are calculated to be 250,000 tons grading 2.66% copper, 3.45% zinc and 0.015 opt. gold. It is now the company’s intention to test beneath the 1,100 ft. level.

 Millstream will move to source the necessary funds to carry out the next phase of drilling. The company also notes that it has been in discussions with potential partners and is exploring several J.V. possibilities.

 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.