MILLSTREAM ANNOUNCES INITIAL SHALLOW

DRILLING RESULTS ON ITS COPPER/ZINC PROPERTY;

MATHESON AREA, ONTARIO, CANADA.

Date: September 4, 1996


Millstream is very pleased and excited with the results of the recent geophysics, mapping and initial shallow drill program on the Potter Property, mid-way between the Noranda and Kidd Creek deposits.

Three (3) broad geophysical target areas were drilled with copper and zinc mineralization intersected in favourable rock units by all holes drilled in the target areas.

In the target area on strike of the known ore deposition, 3000 ft. east from the mine shaft, hole S96-003, @ dip -45°, intersected 490 feet of sulphide mineralization in favourable rock units. In the target area 2600 ft. south-east from the mine shaft, hole S96-006, dip -45°, intersected 331 feet of sulphide mineralization. In the target area 3800 ft. north-northwest from the mine shaft, hole S96-009, @ dip -45° intersected 231 feet of sulphide mineralization in favourable rock units.

Field mapping has extended the known ore hosting rock units 5250 ft. to the east from the mine shaft. At the north edge of the Property these favourable rook units are dipping south and chlorite-carbonate alteration is present. This chlorite-carbonate alteration was observed to be associated with the ore during past mining operations. A broad syncline runs NNW-ESE through the Property with the known ore bodies situated on the north dipping south limb of the syncline. Geologists P. Brown and K. Card indicate the mineralization appears to be associated with a mafic fragmental unit related to thick ponded gabbroic flows. A large outcrop of gabbro 4300 ft. to the west from the mine shaft having a geophysical EM conductor immediately to the north, is extremely encouraging. It is believed that the deep overburden in the area between this outcrop and the mine shaft accounts for the lack in response of the previous EM survey and a more powerful EM system will be utilized to properly assess this area. It is reported to the company by its consultants that these findings add significantly to the resource potential of the Property and the possible expansion of the known ore deposit.

Previous operations on the Property reported the continuation of the sulphides for at least 300 feet below the bottom 1100 foot mine level and suggest a lengthening. widening and grade improvement with depth. At closure of the mine, the workings were still in sulphides with widths up to 30 feet being encountered and grades up to 6% copper and 11% zinc.

Rapid compilation of the data obtained to date is being carried out in preparation for the next planned exploration phase. Detailed geophysics in the target areas on the conductor zones is planned to identify massive sulphide ore targets for drilling. Mapping and interpretations by K. Card Ph.D., a prominent geologist on volcanogenic massive sulphide depositions, is continuing as well as reviewing deeper drilling target areas.

The principle business of Millstream is mineral exploration and it holds mineral claims or interests, directly or through wholly owned subsidiaries  in the Czech Republic, U.S.A. and Canada.