NEWS RELEASE

ECUADORIAN MINERALS CORPORATION

September 1, 1999

Trading: TSE.EMC

ECUADORIAN ANNOUNCES FINAL DRILL RESULTS
AT BEROEN GOLD/SILVER PROPERTY, ECUADOR

Ecuadorian Minerals Corporation (“EMC”) is pleased to announce that it has received all assay results for the recently completed diamond drilling program on the 100%-held Beroen epithermal gold-silver deposit in Ecuador. Twenty-one angled drill holes, totaling 2,029m, tested three primary target areas (see attached map)and identified two significant areas of gold and silver mineralization (the Alejandra  and  Dorada Zones) with potential to host a preliminary geological mineral inventory, based on in-house estimates, in the order of 1.8 million gold equivalent ounces at an estimated grade of 6.1 g/t gold equivalent contained within approximately 9.4 million tonnes. In both zones, the mineralization remains open in several directions. From information generated by the drilling, these two zones exhibit many similarities, in terms of style of alteration, mineralization, gold-silver values and structural setting (based on published data) with Meridian Gold’s El Peñon gold-silver deposit currently under development in northern Chile.

Alejandra Zone

Following an extensive geological mapping and surface rock sampling program completed earlier this year by EMC (see news release dated May 26, 1999), a 10 drill-hole program (totaling 844.5m) tested a northeast-southwest trending, faulted, mineralized zone approximately 200m in length by 150m in width, open at both ends. About 75% of the zone is obscured by surface cover. Sixty-six of 82 surface rock panel samples collected during EMC’s program comprised silicified, clay-altered, brecciated and stockworked volcanic rocks and gave average, uncut grades of 3.4 g/t gold and 39 g/t silver. Sixteen of the 82 rock samples were collected from steeply dipping quartz veins up to 3m in width within the altered volcanics and these samples yielded average, uncut grades of 39.1 g/t gold and 209 g/t silver. Cutting gold grades to 50 g/t and silver grades to 300 g/t provides average values for the 16 samples of 27.8 g/t gold and 166 g/t silver.

Results (uncut values) for EMC’s ten drill holes (drilled at angles of 45º to 60º) within the Alejandra Zone are listed below and locations are shown on the attached maps. Also included are three diamond drill holes completed by Rio Tinto in 1996, in the southwestern part of the Alejandra zone.

* Drill results previously stated in July 29, 1999 news release.
Note: Gold equivalent value is calculated on the basis of 50 g/t silver equals 1 g/t gold. All gold and silver values are uncut.

Taking into account the Rio Tinto drill holes listed above and the limited amount of additional drilling carried out to date by EMC, the results show a well-developed northeast-southwest striking, southerly dipping zone of hydrothermal breccia (the Alejandra Breccia) over an estimated true width of about 30m with an arithmetical average for results from drill holes BC 2,4,5,16 and LLP 8,9 and 10 of 7.5 g/t gold and 67 g/t silver (approximately 8.8 g/t gold equivalent). This mineralized breccia zone (partially faulted as evidenced by BC 3 not intersecting bedrock) has a projected strike length of about 300m and, based on in-house estimates, has the potential to contain a geological mineral inventory of approximately 1.3 million gold equivalent ounces to a down-dip length of 200m at a grade of 8.8 g/t gold equivalent contained within about 4.7 million tonnes. The zone remains open to the northeast, to the southwest and to depth.

Within the hydrothermal breccia zone, which crops out on surface and which has been drill tested to a vertical depth of 130m below surface in drill hole BC 5, several high grade grade intercepts are reported. These intervals include those in BC 5 with uncut values of 53m at 8.3 g/t gold, 57 g/t silver, including 16m at 24.9 g/t gold, 189 g/t silver and 6m at 46.7 g/t gold, 358 g/t silver.

Cutting the Alejandra breccia are irregular, strongly faulted, high grade quartz veins in the order of 2 to 3m wide (the Elizabeth, Amanda and Alejandra veins). EMC’s geological mineral inventory estimate excludes any contribution from these known high grade veins outside of the breccia zone.

Based on the above results and EMC’s interpretation, additional drilling is considered to be warranted to further evaluate the extent and grade of the Alejandra mineralized zone.

Dorada Zone

The Dorada Zone is located approximately 750m south-southwest of the Alejandra Zone. A previous surface rock sampling program carried out by Rio Tinto over a 200m by 200m area within the Dorada Zone, gave average, uncut grades, calculated by EMC, of 7.8 g/t gold and 29 g/t silver for 152 samples (with high values of 188.6 g/t gold and 288 g/t silver). Chargeability and resistivity geophysical anomalies are coincident with the mineralized zone.

A total of 13 surface rock panel samples of brecciated, silicified and clay altered intrusive with minor volcanics were collected in and along strike from the area drilled by EMC. Eight of the 13 samples reported uncut values in excess of 4.0 g/t gold and 10 g/t silver with a high of 738 g/t gold (21.5 oz/t) and 664 g/t silver (19.4 oz/t) Visible gold was identified in a number of surface outcrops by EMC geologists.

In the recently completed program, EMC drilled five angled holes in the Dorada Zone (a total of 323.5m) to test a portion of the northeast trending, mineralized zone over a distance of about 100m in length and 75m in width. Uncut drill hole results are shown below and include three Rio Tinto diamond drill holes whose drill sites were utilized by EMC for its drill program at Dorada.

Note: Gold equivalent value is calculated on the basis of 50 g/t silver equals 1 g/t gold.
All gold and silver values are uncut.

All of the angled EMC drill holes reported significantly longer mineralized intercepts of higher grade material than the corresponding holes completed by Rio Tinto due to the fact that EMC drilled angled holes across the mineralized zone (which contains steeply dipping structures) compared to the vertical Rio Tinto drill holes.

Both the EMC and Rio Tinto drill holes penetrated variably altered, chloritized, silicified and brecciated intrusive (diorite) with stockworks, hydrothermal breccias and veins containing some pyrite and visible gold. Drill results show that all of the holes were collared in mineralization (in the case of BC 21, virtually the entire drill hole was mineralized), so that the actual width of the mineralization is unknown, although a minimum width of about 30m can be estimated. Surface rock sampling by Rio Tinto showed significant gold and silver values over the entire area of available outcrop along the zone covering a strike length of approximately 200m. The mineralized zone appears to be open along strike and to the northwest across its width.

An in-house geological mineral inventory estimate using a minimum width of 30m, a potential strike length of 300m and a down-dip length of 200m, at the average grade of the significant drill-hole intercepts (3.4 g/t gold equivalent) provides approximately 0.5 million gold equivalent ounces contained within 4.7 million tonnes. Additional drilling is therefore considered to be warranted to define the full width of mineralization and to test strike and depth extensions of the zone.

San Luis Zone

The San Luis Zone comprises large areas of altered and mineralized volcanics covering approximately 850m by 750m located adjacent to the north of the Alejandra Zone. EMC’s target is a bulk-mineable, disseminated precious metal deposit (Round Mountain, Nevada style) together with bonanza-grade vein mineralization. Highly anomalous gold, antimony, mercury and arsenic surface geochemical values within the volcanics indicate "leakage" of possible significant precious metal mineralization at depth. Geophysical data generated by Rio Tinto appear to confirm this hypothesis.

EMC drilled 6 widely spaced drill holes (BC 1 and 11 to 15) totaling 861m with a maximum depth of 240m within the 850m by 750m area (see attached map)and focused on areas of intense silicification and/or brecciation together with significant geochemical anomalies. Scattered, narrow (2m or less) mineralized intervals containing 5 to 7 g/t gold and up to 54 g/t silver, were obtained from the drill program. Further work will be carried out to assess the relationship between the San Luis Zone and high grade mineralization intersected in the Alejandra Zone, located to the immediate south.

Summary

The results of the initial Beroen drill program are very encouraging in that a limited (2,029m in 21 holes) diamond drill program tested three different areas within the 1.8 km long mineralized zone and proved the sub-surface existence of significant gold and silver mineralization. Both bulk mineable, open pittable and underground mining potential has been demonstrated within two large zones which require further definition drilling, subject to available financing, to test their ultimate size potential. A preliminary in-house geological mineral inventory estimate for the Alejandra and Dorada Zones indicates a potential in the order of 1.8 million gold equivalent ounces at a grade estimate of 6.1 g/t gold equivalent contained within approximately 9.4 million tonnes. The limited drilling program carried out to date does not, however, provide sufficient data for a formal resource calculation. EMC’s estimate excludes any contribution from known high grade veins outside of the mineralized breccia in the Alejandra Zone.

The overall mineralization in the Alejandra and Dorada Zones at Beroen shows many features in common with the El Peñón property being developed by Meridian Gold Inc. in northern Chile. Mineralization at both properties is related to Tertiary age, low sulfidation, adularia-sericite alteration type, epithermal precious metal systems. The styles of mineralization at each property comprise quartz veins, massive quartz flooded veins and hydrothermal breccias containing bonanza grade gold/silver values. In addition, at both properties the principal control to mineralization is supplied by district scale faulting.

Drilling was carried out by the South American subsidiary of Canadian-based Connors Drilling Ltd. Sample preparation and assaying were undertaken by Bondar Clegg of Vancouver using conventional fire-assay methods. Duplicate analyses of selected Bondar Clegg samples were completed by Monitor Geochemical Inc. and show good reproducibility, particularly for the high grade samples (greater than 5 g/t gold and 15 g/t silver). Standards (with known gold values) and blanks, for quality control purposes, were also included in each batch of assayed samples which were sent to both laboratories.

Vetaspata Property, Peru

Surface and underground geological mapping, sampling and surveying continue on the property in order to establish drill sites for the upcoming drilling program scheduled to start in late September. This program will comprise 15-20 diamond drill holes totaling 1,500m and will evaluate the continuity of the high grade gold-bearing mantos (see news release dated December 2, 1998) away from the previously sampled underground workings and will also test for additional manto horizons at depth and along strike.

The initial primary area of interest, as outlined so far, covers 700m by 500m in area as part of a 60 sq km property position. Surface cover in the area is extensive and the full extent of the mineralized zone is not known at this time, although additional gold-bearing mantos have been identified on the property.

Paccha Property, Ecuador

Certain of the agreement terms related to share issuances under the Paccha option agreement between EMC and Southern Metals Corporation have been amended due to Vancouver Stock Exchange requirements relating to Southern Metals’ option on the property. The agreement, as amended, has been approved by the Toronto Stock Exchange.

Under the amending agreement, dated August 12, 1999, to the original agreement (see news release dated July 6, 1999) the consideration for Southern Metals to earn a 50% interest in the property is now the expenditure of US$1.0 million over three years (with a guaranteed minimum of US$150,000 in the first year) and the issuance of 1.0 million shares of Southern Metals to EMC in four tranches of 250,000 shares, each tranche subject to filing independent reports acceptable to the VSE. An additional 1.0 million shares are issuable to EMC upon filing a bankable feasibility study with the VSE. No other material changes were made to the agreement.

Ayapata Property, Peru

Based upon prevailing market conditions and the higher priority of other EMC projects, both technically and financially, EMC has elected to terminate the agreement for the low-grade Ayapata gold property in southeastern Peru. The joint venture company holding the property, Compañia Minera Ayapata S.A., will be dissolved and EMC’s 95% share holding (through its wholly owned subsidiary Minera Oro Vega S.A.) will revert to the original owner.

Stephen J. Kay, President and CEO

The Toronto Stock Exchange neither approves nor disapproves the information contained in this News Release.

For additional information, contact Linda North at Tel: (480) 483-9932 or Fax: (480) 483-9926.

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