T.S.E. SYMBOL: SAO
S.E.C. Registration: 0-2221
 
PRAIRIE CREEK EXPLORATION RESULTS
"A WORLD CLASS MINERAL DEPOSIT"

Vancouver, British Columbia, December 2, 1997: San Andreas Resources Corporation (the "Company") is pleased to announce that excellent results from its 1997 exploration program, in conjunction with an independent assessment of its technical records, confirms the Prairie Creek ore body amongst the highest grade zinc, lead and silver deposits in the world.

1997 Exploration Program

The bulk of the 231 chip samples collected and analyzed were cut from 294 metres of previously unsampled underground drift development. The weighted average results from the underground sampling program are:

 Zinc  17.22%
 Lead  15.98 %
 Silver  329.9 gm/tonne
 Copper  0.77%

(Detailed data from this part of the sampling program is given in the attached Appendix)

A number of samples were used to verify the results of work carried out by previous operators and these have been confirmed by assay results. A random selection of the 1997 samples were umpired at a second independent laboratory and these confirmed the accuracy of the initial assays. Additional samples from 19 diamond drill holes were taken; additional ore grade assays were returned from 3 of these holes extending the width of previously known ore intersections.

Technical Data
In a review of all the technical data available on the Prairie Creek property it has been identified that there was some high quality data from the pre 1982 exploration periods which had not been integrated with the data obtained from the Company's exploration and development programs performed since 1992. The completion of the database and subsequent interpretation has reinforced the significant potential of the Prairie Creek property.

Metallurgical Analysis and Improvement
The program of metallurgical analysis and improvement has proceeded successfully and according to timetable:

  1. The results of simulated heavy media tests have been encouraging indicating that a quarter inch crush/grind would probably be a suitable medium for rejection of almost 60% of the gangue (from the ore) without incurring significant losses of values. The major benefit of reduced gangue is that either the existing mill will not require the proposed expansion or, with the proposed mill expansion, the throughput of ore could be substantially increased.

  2. A thermal alternative was investigated when it had been determined that mercury could not be removed from the zinc concentrate by physical means. The results of roasting tests have been encouraging with the successful removal of up to 92% of the mercury content in the zinc concentrate. The benefit of reducing the mercury levels is the increase in the marketing options for the zinc concentrate.

Resource Estimate
Following the completion of the analysis from this year's exploration program at Prairie Creek MRDI Canada, a division of H.A Simons Ltd., is currently preparing a resource estimate of the main zone deposit and it is expected that the result of this independent evaluation will be available later this month.

PROJECT BACKGROUND:

The Prairie Creek property, wholly owned by the Company, is located in the Northwest Territories of Canada (6133'N 12448'W), 500 km west of Yellowknife NWT and 338 km north of Fort Nelson, British Columbia. The Company's land ownership extends to a length of 27 km. An in-situ geological resource in excess of 10 million tonnes, grading 13.1% zinc, 11.3% lead and 188 grams of silver per tonne and 0.3% copper has been discovered by diamond drilling over a strike length which extends to 2.1 km and remains open for further exploration. A Development Cooperation Agreement has been signed with Nahanni Butte Dene Band.

The Company currently has 18,573,352 common shares issued and outstanding.

FOR FURTHER INFORMATION PLEASE CONTACT:

SAN ANDREAS RESOURCES CORPORATION

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

APPENDIX
 
The weighted averages from the 294 metres of previously unsampled underground drifts are as follows:

Level and Location

DRIFT LENGTH TRUE WIDTH ZINC LEAD SILVER

COPPER

(metres)

(metres)

%

%

gm/t

%

870m -xc-1E-n

25

1.46

8.07

18.02

365.4

0.80

-xc-5E-sa

47

1.30

15.03

10.24

202.2

0.48

-xc-5E-sb

40

1.81

27.24

9.69

229.7

0.71

930m -xc-10E-n

22

1.34

18.70

14.23

360.7

0.87

-xc-12E-s

20

1.88

17.25

19.86

387.0

0.96

-xc-14E-s

17

2.16

20.52

25.95

446.1

0.67

-xc-14E-n

31

1.86

21.33

19.56

370.6

0.80

-xc-15E-n

23

3.47

12.61

14.47

398.8

1.10

-xc-20E-n

58

1.56

16.26

16.51

314.0

0.69

-xc-24E-n

11

1.84

7.14

22.75

332.8

0.53

Total

294

Weighted Average

1.78

17.22

15.98

329.9

0.77

The above assay results and widths represent the main vein structure only; there are significant ore grades on the flanks of this structure and these are expected to contribute substantial tonnages to the total deposit.