T.S.E. SYMBOL: SAO
S.E.C. Registration: 0-2221

PRAIRIE CREEK

INDEPENDENT EVALUATION

SUBSTANTIATES

A WORLD CLASS MINERAL DEPOSIT

Vancouver, British Columbia, December 16, 1997: San Andreas Resources Corporation (the "Company") is pleased to announce the results of an independent evaluation of the geological resource in its Zone 3 deposit at Prairie Creek, Northwest Territories by MRDI Canada ("MRDI"), a division of H.A Simons Ltd:

Category Tonnes 000’s Zinc % Lead % Silver gm/tonne

Measured

1,121

12.9

9.8

138

Indicated

2,447

11.3

9.7

142

Inferred

8,278

12.8

10.3

169

Total Zone 3

11,846

12.5

10.1

161

The information used in the resource estimate by MRDI has been derived from the Company’s diamond drill hole data, channel sampling from underground development and from a number of the more clearly defined drill logs from previous operators.

Detailed data from the evaluation by MRDI and the methodology applied is given in the attached Appendix.

PROJECT BACKGROUND:

The Prairie Creek property, wholly owned by the Company, is located in the Northwest Territories of Canada (61°33'N 124°48'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 and the strike length of the Zone 3 deposit extends for 2.1 km and is 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

INDEPENDENT EVALUATION OF

ZONE 3 GEOLOGICAL RESOURCE
         
CATEGORY Tonnes 000s Zinc % Lead % Silver g/t
         

Measured

       

Vein

542

12.5

13.0

197

Stockwork

79

31.1

15.0

294

Stratiform

500

10.5

5.4

51

 

1,121

12.9

9.8

138

         

Indicated

       

Vein

1,434

11.2

12.8

190

Stockwork

228

14.5

5.6

134

Stratiform

785

10.6

5.1

59

 

2,447

11.3

9.7

142

         

Inferred

       

Vein

7,412

12.7

11.0

174

Stockwork

742

14.6

5.0

145

Stratiform

124

7.9

2.7

26

 

8,278

12.8

10.3

169

         

Geological Resource

11,846

12.5

10.1

161

METHODOLOGY

All geological assay data were supplied to MRDI by the Company. Contiguous assay results for the vein, stockwork and stratiform deposits have been included by MRDI in the calculation of the geological resource, other than those silver assays with grades in excess of 600 gm/tonne which have been included at that reduced figure. The data supplied was reviewed by MRDI for completeness and overall integrity for inclusion in their geological model of the deposit. Inconsistencies within the raw data set were rectified from additional data supplied by the Company. The geological resource has been classified into measured, indicated and inferred resources, based upon the level of confidence according to the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves, using the drilling grid spacing and continuity of mineralization as determined through the geostatistical review of the data. MRDI staff visited the Project and MRDI feels that the data and the interpreted model properly represents the Prairie Creek deposit.