20,665,839 shares issued

Date: March 6, 1998

Management is pleased to report on the current status of the company's Potter Mine base metal exploration project, located in the productive Abitibi Greenstone Belt in Northeastern Ontario. The property continues to produce encouraging results for the company, with the potential for a major copper-zinc discovery. The fifth diamond drill hole has been completed and geophysical surveys are in progress. Six (6) Major mining corporations have recently visited the property.

The company consultant geologists, Phil Brown and Dave Gamble, report the five hole deep diamond drill program, recently undertaken on the property has been completed. Favorable copper /zinc mineralization was encountered in all five holes. Detail core logging, splitting and assaying are ongoing. The ddh program has confirmed the extension of the sulphide mineralization to 800+ feet below the old mine workings. The deep drill holes have outlined a mineralized envelope extending 600 + feet across strike, and 900 + feet along strike, with the envelope open along strike in both directions and at depth. The pyrrhotite-chalcopyrite-sphalerite mineralization is hosted by a series of stacked hyaloclastite horizons, and also within the intervening ultramafic flow sequences.

Quantec IP Inc. has been contracted to perform geophysical surveys consisting of the following:

 1) 3D TEM Borehole surveys on two holes

 2) Real Section IP survey over the mine grid area.

3) The 3D TEM Borehole surveys are being done on ddh S97-10 (completed) and on ddh S97-12 (to be completed).

The results received to date for ddh S97-10 have been successful in defining not only the In-hole mineralization but also in defining several Off-hole conductors as targets for future drill testing.

The Real Section IP survey is currently being carried out over the mine grid area. This survey is anticipated to define the mineralized envelope along strike and at depths to 600m.

Future planning will review the possibility of dewatering and rehabilitating the mine to access the past bottom working level and an exploration drift to the north of the past stope areas and then paralleling the stope areas with diamond drill stations every 100 feet. Sufficient drilling would be carried out in each station to define the configuration of the ore body to a vertical depth of 3100 feet below surface. Concurrently, the surface diamond drilling will continue to explore the property on strike.

Management, with the above in mind has held meetings with institutional lenders. Likewise, Major mining corporations have expressed interest and future discussions are planned.

In appreciation to the many brokers that have supported our efforts, an exclusive invitation to our hospitality suite is extended,

Sunday, March 8, 1998

Millstream Mines Ltd.,

Royal York Hotel,

Suite

6:00 p.m. to 8:00 p.m..

Drill core from the sulphide zones of holes S97-12, S97-11, and S97-09 will be on display at the Royal York Hotel in the company's hospitality suite during thc PDAC, March 8 to 11th, 1998.

Yours truly,

Ernest Harrison

President

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