Date: March 10, 1997 

Millstream’s winter program consists of a ground based Max. - Min. geophysical survey overlapping the previous VLF survey. The purpose is to enhance the interpretation of the known conductors and to select new drill targets. The 2^nd phase drill program consists of approximately 5,000 feet, concentrating on the very strong conductor zones.

 The property consists of 28 leased 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 principal business 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.