25,801,839 shares issued

 

NEWS RELEASE

 Date: May 7, 1998

FLOW THROUGH FINANCING FUNDS SUCCESSFUL

DRILL PROGRAM

 

Millstream Mines Ltd. wishes to thank all those who supported the exciting "Deep Drill Program" through the purchase of flow through share units. Flow through shares (Revenue Canada approved) are tax-based financing incentives available to the Canadian Mining Sector.

 Millstream has completed 6 holes in its current "Deep Drill Program" and is very pleased to have announced a new discovery along with confirming the downward extension of the sulphide zones beneath the past mine workings. The "Deep Drill Program", in conjunction with new technologies, is proving to be successful in identifying a "favourable package of volcanic rocks" and massive sulphide areas. Many more identified targets remain to be drilled.

 

Foremost in financially supporting Millstream's program was Augen Capital Corp. (AUG-ASE), which provided the initial financing for Millstream's 1997/98 program. This consisted of a total financing of $658,000, provided at a time in the market when investor interest in resources had fallen to a 6 year low.

 Augen is an emerging merchant bank, listed on the Alberta Stock Exchange (AUG), that specializes in financing and investing in early stage mineral & oil exploration.

 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.

 

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No regulatory authority or similar body approved nor disapproved the information contained herein.