INDOCHINA GOLDFIELDS COMPLETES FINANCING TO CONSTRUCT MYANMAR COPPER MINE SINGAPORE, Sept. 24 /CNW-AsiaNet/ - R. Edward Flood, President, and Robert M. Friedland, Chairman, announced today that Indochina Goldfields Ltd. has completed formal arrangements for the development of the Monywa copper mine complex in north-central Myanmar. Contracts for finance, construction and copper marketing were signed yesterday by Indochina Goldfields and its 50% joint venture partner, Mining Enterprise No.1, at a ceremony in Yangon, Myanmar. As parties to the transaction, Marubeni Corporation and Nissho Iwal Corporation will provide a US$90 million loan for the project's first phase. Chiyoda Corporation and Marubeni will design , construct and commission the ore crushing, conveying and heap-leach facilities, as well as the solvent extraction/electrowinning plant. Marubeni is also committed to purchase the first seven years of copper production form the mine. "The project is on track to commence Phase I production in mid-1998, and to reach full commercial production at an annual rate of 25,000 tonnes of LME Grade A copper cathode by year-end 1998," Mr. Flood said. The company has also initiated discussions to secure project financing for construction of the Phase II expansion on the adjacent Letpadaung ore body. Minproc Engineers of Perth, Australia, recently completed a bankable feasibility study for the initial Phase II production of 63,500 tonnes of copper cathode per year, with expansion capacity of up to 128,000 tonnes of copper cathode per year. The study forecasts a cash operating cost of 43 cents a pound, with initial capital, development, commissioning and working capital costs of approximately US$300 million. Milproc is completing an optimization study based upon a recently upgraded reserve estimated that will determine the most attractive annual production scenario for the project. Indochina Goldfields expects to release the results of this study within the next month. The company's other assets include gold and copper properties and other interests in Indonesia, Kazakstan, South Korea, Vietnam and Fiji. Indochina Goldfields Ltd. 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 North America, (604) 688-5755.