[This mine appears to be located in a Tibetan area of Sichuan, in Baiyu County which is west of the Yalong River and adjacent to the Tibet Autonomous Region. -CR]

ATHABASKA GOLD RESOURCES LTD.

Xiacun Silver-Base Metal Project, Sichuan Province, China

Of Breckenridge Resources Ltd. Agreement In Principle Signed

VANCOUVER, Jan. 11 /PRNewswire/ -- Athabaska Gold Resources Ltd. reports that Breckenridge Resources Ltd. (Vancouver: BKD) has announced, by News Release dated January 10, 1996, that an Agreement in Principle has now been signed with respect to its Xiacun Silver-Base Metal Project in Sichuan Province, China.

Athabaska Gold Resources Ltd., through a recent private placement investment and exercise of warrants, holds 24.9% of the outstanding shares of Breckenridge and holds additional warrants that will, when exercised, give Athabaska a 30.2% interest in Breckenridge. Athabaska also holds a right of first refusal with respect to future Breckenridge financings.

The Breckenridge Resources Ltd. News Release is quoted as follows:

"Breckridge Resources Ltd. is pleased to report that it has now negotiated and concluded an `Agreement in Principle' with respect to the joint venture development of the Xiacun Silver-Base Metal Project, Sichuan Province, China. This new agreement supersedes and expands upon the Memorandum of Understanding previously reported and is a major development in the process of concluding a final definitive operating joint venture agreement under the People's Republic of China Law on Chinese-Foreign Joint Ventures. Our joint venture partner in the Xiacun Project, China Sichuan Baiyu Xin Yuan Mining Company Ltd., is a consortium formed by the following four Chinese corporate entities, representing county, prefecture and provincial government interests:

China Non-Ferrous Metals Chengdu Corporation

Sichuan Provincial Bureau of Geology and Mineral Resources

Ganzi Non-Ferrous Metals Industrial Corporation

Baiyu County Industrial Resources Corporation

Under the terms of the Agreement in Principle, Breckenridge can vest a 67% project interest by completing a bankable final feasibility study and matching, pro-rata, prior Chinese project expenditures in an amount to be finalized by further agreement. Thereafter, both parties will share all project costs and proceeds in proportion to their respective project interests.

Our Chinese partner wishes to proceed as expeditiously as possible towards a final joint venture agreement. They have agreed to lead negotiations, on behalf of the joint venture, with all relevant government agencies with respect to royalties, tax regime, permitting and other such matters. Preliminary indications are that very significant tax incentives will be available to this project.

The Xiacum Project Pre-Feasibility Study, being carried out for Breckenridge by Rescan Engineering Ltd., is well advanced and preliminary results are very encouraging. Rescan is a well regarded engineering consulting firm based in Vancouver, B.C. Breckenridge will report fully on this work when this report is completed.

On receipt of the Rescan report, with the positive recommendations that are anticipated, and on successfully finalizing certain contractual matters with our Chinese partner, Breckenridge will commence work, in two stages, towards a final feasibility study with Stage Two contingent upon the continued indication of economic viability from a revised prefeasibility study incorporating the results of Stage One. Stage One work will include the collection of a large underground-mining bulk sample and transport of the sample to Canada for a definitive program of metallurgical testwork, revision of the process plant capital operating cost estimates based on the results of the metallurgical test program, and also completing a hydro power survey."

CONTACT: James S. Kermeen, M.Sc., P.Eng, President, 604-688-3144/ (AHB.)

CO: Athabaska Gold Resources Ltd ST: British Columbia IN: MNG SU