16,064,925 shares issued and outstanding

Date: October 31, 1997

Millstream’s Base Metals Division recently obtained an option to earn a 50% interest in 46 mining claims located in Falconbridge Township, Sudbury Mining Division, northern Ontario, Canada. The claims, known as the Airport Property, are located at the eastern edge of the Sudbury structure tied onto the east side of a large group of claims held by Falconbridge Ltd.

 Deep seated - high grade mineralization is being explored along this edge of the Sudbury structure to the northwest of the Property. It has been reported that Inco Ltd. at its northeast rim Victor property is exploring a rich nickel, copper and platinum deep deposit having gross in-situ value in excess of US $1,000 per ton. (As referred to by the Globe & Mail, January 25, 1994 and the Northern Miner, October 27, 1997)

 Previous exploration on the Airport Property carried out by others resulted in the discovery of sulphide mineralization and low copper, nickel and gold values. The Property is reported to contain anomalies of Cu, Ni-PGM mineralization and areas of gold value. It has Geophysics established conductors with rock types which may host Sudbury type Ni-Cu and gold deposits.

 Two major faults cross the Property trending southeast affect all rock units and are known as the Airport Fault and the Norduna Fault. These faults are now filled by olivine diabase dikes and copper-nickel-cobalt-PGM mineralization has been found in association with these faults.

 The northwest portion of the Property hosts mafic rocks of the Stobie formation, including basalts, gabbros and norites. Areas of Sudbury Breccia with sulphide mineralization have been observed in the northern part of the Property. Gold geochemistry anomalies have been found in the southwest part of the Property and may represent the extension of the mineralization zones of the Falcon Gold Mine which abuts the Airport Property claims.

 Millstream is responsible for funding an exploration expenditure of $550,000 on behalf of the Property by March 31, 1999. Thereafter, Millstream shall be responsible on an equal bases, representing its 50% interest for all further mutually approved progress and funding commitments.

 The principal 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 Czech Republic, USA and Canada

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