3 June 1998

FINANCING

The company has concluded a new financing agreement with Juno Limited, the company’s major shareholder which holds 50% of the company’s share capital. Under this agreement, which replaces a previous working capital agreement signed in September 1996, Juno will provide up to an additional £200,000 for current liabilities and the company’s continuing programmes at Parys Mountain. In addition indebtedness under the existing working capital agreement of £150,000 will be carried forward as part of the new facility.

The loans of up to £350,000 from Juno are denominated in sterling, unsecured, carry interest at 10% and are repayable from any future financing undertaken by the company. Drawdown of the new portion of the facility is scheduled over the period to 31 July 1999.

In accordance with the company’s Controlling Shareholder Agreement with Juno the terms of the facility were approved by an independent committee of the board.

Contacts :
Ian Cuthbertson	John F. Kearney
Company Secretary	Chairman
(44)1248 361333	(1)416 362 6686