25,801,839 shares issued

Millstream's Consultant Geologist David Gamble reports the four (4) recently completed drill holes were drilled for continuity (definition) and to test for the east and west extensions along strike from the main Potter Mine Cu-Zn-Co mineralized system. The drill holes were also designed to test anomalous I.P. responses delineated by Quantec's Real Section I.P. Survey. 

The definition drill hole #S98-05 (15 + 85W, 575S, Az 350, dip-60) intersected 40 feet of massive sulphides ("MASU") accurately confirming the continuity of the mineralized Cu-Zn-Co system to 200+ feet west of the MASU of drill hole S97-08A (reported Dec. 23, '97). Both of these MASU intersections are approximately 1450 ft. vertically down from the surface elevation and on strike from each other. 

 Step out drill hole #S98-04 (18 + 00W, 550S, Az 350, dip-60) was targeted to test the ground 1450 feet vertically down from the surface elevation and about 200 feet west of the projected western plunge limit of the previous mine workings. The hole intersected the Cu-Zn-Po sulphide mineralized mine stratigraphic horizon. This mineralization appears to be a lateral halo of low grade Cu-Zn mineralization that lies west of the main MASU Cu-Zn-Co rich system at this depth.

 Drill holes #S98-02 (14 + 25W, 813S, Az 350, dip-45) and #S98-03 (14 + 25W, 100S, Az 180, dip-60) were drilled to test the ground 1400 - 1500 feet vertically down from the surface elevation and about 300 feet to 400 feet east of the MASU Cu-Zn-Co zone of drill hole S97-08A. Both holes intersected the Cu-Zn-Po sulphide mineralized hyaloclastite mine stratigraphic horizon. The mineralization appears to be an eastern lateral low grade halo to the main MASU Cu-Zn-Co rich system at this depth.

 The MASU intersections reported for holes S-97-O8A, S-97-09, S-98-01 and the current definition hole all lie in the central part of steeply plunging downward extension of the Potter Mine sulphide system. These ore grade intersections occur vertically from surface in what would appear to be a steeply, 75 degree west plunge of the mine sulphide ore zones. The Cu-Zn-Co sulphide mineralization is best developed along what appears to be a steeply west plunging trough of hyaloclastite fragmentals with a presently unknown down plunge and vertical depth extent. The Centre Hill gabbro that underlies the hyaloclastite horizon along strike to the east of the mine also appears to underlie the steeply west plunging hyaloclastite mineralized system in the mine area.

 A similar I.P. response centered on L5+25mW some 1000 meters east of the mine, exhibits a strong chargeability and well developed low resistivity zone that is similar to and mimics the sulphide rich mine setting. The two zones are linked along strike on surface by hyaloclastite that flanks the Centre Hill gabbro lying to the south. The hyaloclastite that is centrally located between these two zones on L10+50mW on surface is a coarse proximal facies breccia that fines to the north and also laterally west towards the mine at L15+75mW and to the east towards a new additional exploration drill target area on L5+25mW.

 Upon the completion of adequate funding, Millstream proposes that drill testing in the down plunge direction and at depth in the immediate mine area be ongoing, and also that the exploration targets in the L5+25mW area be drill tested. The geological information gathered to date continues to increase Millstream's understanding of both the property in general and specifically the configuration of the known ore zone. The geophysics on the property have identified a multitude of targets with signatures similar to the past mine area, all of which must be drill tested for their ore potential.

 The principle objective of Millstream Mines Ltd. is to enhance and develop mineral properties to production potential. Millstream holds mineral claims or interests directly or through wholly owned subsidiaries in the Czech Republic, USA and Canada.

-30-