T.S.E. SYMBOL: SAO
S.E.C. Registration: 0-22216
 
SAN ANDREAS RESOURCES CORPORATION ANNOUNCES
PROPOSED LIMITED PARTNERSHIP FINANCING OF
UP TO $11.25 MILLION

Vancouver, British Columbia, May 13, 1996: San Andreas Resources Corporation (the "Company") announces that it is actively working on a proposal whereby a partnership, made up of limited liability investors, would be entitled to earn an interest of up to 5% in the Company's Prairie Creek Property ("the Property") by making expenditures on the Property of up to $10.35 million.

Each investor must purchase a minimum of 7 units in the partnership, at a price of $22,500 per unit, for a minimum investment of $157,500. The Company and Nahanni Explorations Ltd.("Nahanni"), a wholly owned subsidiary of the Company, have formed the Prairie Creek Exploration Limited Partnership (the "Limited Partnership"). Nahanni is the general partner of the Limited Partnership and the investors will be the limited partners.

The Company has also entered into a Farm-In Agreement with the Limited Partnership which, provided the Limited Partnership has made the required exploration expenditures, entitles the limited partners to convert their units in the partnership into Company shares in January, 1998, on the basis that the amount subscribed for units is converted into shares at $2.25 per share. Between 2.1 million and 5 million San Andreas common shares would be issued upon conversion of the units in the Limited Partnership dependent upon the size of the financing. The conversion of units into San Andreas shares is subject to the approval of the Toronto Stock Exchange and the Company's shareholders. The maximum subscription is $11.25 million (500 units) and provided that the minimum amount of $4,725,000 (210 units) is subscribed shareholders will be asked to approve the proposal at the Company's Annual General Meeting to be held on June 13, 1996 at the Hotel Georgia, 801 West Georgia Street, Vancouver, B.C.

The proposal requires the Limited Partnership to apply the net proceeds from the financing, of between $4.347 million and $10.35 million, to exploration expenditures in 1996 and 1997 in order to earn an interest of between 2.1% and 5% in the mineral rights of the Property (the "Partnership Interest").

Upon receipt by the Company of the necessary environmental approval and/or licences and permits to allow commercial production on the Property, and provided that the limited partners have not exercised their right to convert units in the Limited Partnership into Company shares, the Limited Partnership will purchase an undivided interest, equal to its Partnership Interest, in the infrastructure on the Property for a purchase price of between $2.1 million and $5 million depending upon the Partnership Interest acquired.

Subject to completion of the financing, exploration expenditures undertaken by the Limited Partnership will be made on the Property during 1996 and 1997 with the objective of increasing the confidence level in reserves, discovering further geological resources and carrying out engineering and technical studies, including access road studies and conducting infrastructure negotiations, in order to advance the property towards a feasibility study.

FOR FURTHER INFORMATION PLEASE CONTACT:

SAN ANDREAS RESOURCES CORPORATION

Tony Millar, Chairman & C.E.O. (UK):011 44 1252 794740
David Elgee, President (CANADA):(604) 688-2001