Essex Resource Corporation: Formal Agreement Signed to Acquire 75 Percent Interest in Calatrava Project

VANCOUVER, BRITISH COLUMBIA–(BUSINESS WIRE)–Aug. 31, 1998– Essex(TSE:ESX.) (VSE:ESX.) Mr. Ian Rozier, Chairman, is pleased to report that the Company has entered into a formal ‘Heads of Agreement’ to acquire a 75 percent interest in Canarias East S.L., a company incorporated in Spain that owns a 100 percent interest in the Calatrava cobalt-manganese project in southern Spain, (see News Release dated July 20, 1998).

The Company will now commence a confirmatory field program of drilling, sampling and metallurgical testing in order to validate the extensive data base already developed on the project by ADARO (Spain’s State Mining Corporation). Under the terms of the agreement the Company has a period of six months in which to complete this program, formalize all legal documentation and obtain regulatory approval.

A preliminary economic viability study using ADARO’s technical data base is currently being conducted by the Company and the results of this study will be released shortly.

Essex currently has 25,569,667 shares issued and outstanding and $8 million cash in the treasury.

CONTACT: Essex Resource Corporation

Barbara Dunfield, 604/ 685-6851

www.essexresource.com

COPYRIGHT 1998 Business Wire

COPYRIGHT 2000 Gale Group

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