Moydow Mines Ntotoroso Zone 'E' Mineralization Extended

09:05 a.m. May 27, 1999 Eastern

TORONTO--(BUSINESS WIRE)--May 27, 1999--Moydow Mines(TSE:MOY.) Mr. Brian Kiernan, President and CEO reports a major extension of mineralization at Zone 'E' of its Ntotoroso gold project in Ghana discovered earlier this year.

Results of 9 holes drilled in phase 2 confirm the extension of the Zone 'E' mineralization along the 2.1 km strike length of the linear geochemical anomaly.

The drilling was spaced along the center line of the main zone and drill holes now cover a distance 2.1 km on sections spaced 200m apart. The geochemical signature indicates that the strike length is still open in both directions. In-fill drilling on 100m spacing is continuing with two diamond drills to define the lateral and vertical extent of the mineralized zone which is steeply dipping and lens shaped.

Highlights of phase 2 drilling of holes 188 through 196 include an intersection at a vertical depth of 180m in hole 188 which bottomed in mineralization. Intervals of significance were: 77m grading 2.64 g/tonne in hole 188; 129m grading 3.05 g/tonne including 28m grading 8.77 g/tonne in hole 189 and 96m starting from surface grading 3.9 g/tonne in hole 195.

The plan and coordinates of the drill hole location on Zone 'E' together with assays received to date from the phase 2 drilling are presented in tables to this news release.

The Ntotoroso property lies contiguous with property held by LaSource/Normandy which is the Company's 40 percent partner on the project. Both Zone 'A' and Zone 'C', which have a combined in-house calculated resource of over 600,000 ounces of gold, traverse the boundary. LaSource/Normandy has begun to test an extension of the Zone 'E' anomaly along strike to the northeast on its wholly owned ground.

"The new drill results confirm our high expectations for the potential of Zone 'E' to host a major new gold deposit" said Mr. Kiernan. The Company will continue drilling under funding provided by LaSource/Normandy which may increase its interest from 40 percent to 50 percent by completing an additional US $4 million in exploration expenses on the project. LaSource/Normandy has indicated it intends to continue to earn-in.

Moydow Mines, listed on the Toronto Stock Exchange ("MOY"), holds a 31 percent interest in the Wassa gold mine in Ghana and other exploration projects in West Africa.

Moydow Mines will be holding its Annual Meeting in Toronto at The Royal York Hotel today at 4:30 pm.