JAPANESE COMPANIES SUBMIT PROPOSAL TO FINANCE AND CONSTRUCT NEW COPPER MINE FOR INDOCHINA GOLDFIELDS JOINT VENTURE SINGAPORE, June 18 /CNW-AsiaNet/ - Robert M. Friedland, Chairman, and R. Edward Flood, President, announced today that Indochina Goldfields Ltd. has negotiated a definitive proposal from two of the largest Japanese trading companies to finance and build the first phase of the planned Monywa copper mine complex in north-central Myanmar. The proposal, which is subject to acceptance by the board of the Monywa joint venture, includes: - A US$90 million loan to finance construction of the project's first phase. - A $77 million lump-sum engineering procurement and construction contract. - A long-term sales agreement covering copper cathode to be produced during the first 10 years of operation. Indochina Goldfields has delivered the binding proposal for project financing and construction to its 50% joint venture partner, Mining Enterprise No. 1. This fulfills one of Indochina Goldfields' primary obligations to the joint venture. "The opportunity to play a founding role in the launch of a world-class, low-cost, solvent extraction-electrowinning copper mine in Asia is a major step in Indochina Goldfields' evolution from developer to producer," Mr. Flood said, "The Monywa copper project now has the financing commitment it needs to put the mine into production, on schedule, within 12 months of the start of construction." The board of the Monywa joint venture will decide within 60 days on the acceptance of the Japanese financing and construction proposal. The joint venture has been operating a solvent extraction-electrowinning (SX-EW) copper pilot plant at the site of the proposed mine for nearly two years. A bankable feasibility study conducted by Minproc Engineers of Perth, Australia, and detailed engineering completed by CMPS&F of Brisbane, Australia, have confirmed that the Monywa ore is ideally suited to heap-leaching and SX-EW treatment, eliminating the need for an on-site mill or smelter. Mr. Flood said the company plans to achieve Phase I production, based on the Sabetaung-Kyisintaung deposit, of 25,000 tonnes (55 million pounds) of highly refined (99.999%-pure) copper cathode a year in 1999 at a cash operating cost of approximately 48 cents (US) a pound. Production plans are based on reserves sufficient to support mining at planned rates for more than 20 years. In addition, Minproc has completed a separate feasibility study on the adjacent 480-million-tonne Letpadaung copper orebody, which the joint venture is planning to mine in Phase II of the Monywa project. Production from Letpadaung is projected at 63,500 tonnes (140 million pounds) of highly refined copper cathode a year, which would give Monywa combined annual production from Phases I and II of 88,500 tonnes (195 million pounds). The cash operating cost for copper from the larger Letpadaung deposit is estimated to be about 43 cents a pound. The company's portfolio of other assets includes gold and copper properties and other interests in Indonesia, Kazakstan, South Korea, Vietnam and Fiji. The company's shares trade on the Toronto Stock Exchange and on the Australian Stock Exchange under the symbol ING. Information about the company and its projects is available on its Web site, http://www.goldfields.com. For further information: R. Edward Flood, President (604) 688-5755 (North America).