Argentine 60% Joint Venture & Other News

Brancote Holdings PLC
16 December 1999


Contacts: Richard Prickett, Chairman
          Bill Humphries, Managing Director
          Brancote Holdings PLC                   0171 493 1002

          David Bick/Becky Jewers
          Holborn Public Relations                0171 929 5599
                                       [e-mail]
                                     [e-mail]


                             BRANCOTE HOLDINGS PLC
                                       
                          Argentine 60% Joint Venture
      Land Acquisition and Progress Report on Gold Exploration Programme

Highlights



*  INCREASED TENEMENT HOLDINGS, in the highly prospective Cordon de Esquel
   and Huemules areas, by 48,500 hectares bringing the total now held to 
   120,732 hectares.

*  CONTINUED EXPLORATION SUCCESS with the new discovery veins - Beleriand -
   Gandalf - Ungoliant and Pinnacles in the south and the identification of a
   massive breccia complex, La Cupula, in the northern Mayoco Cateo.

*  BONANZA SILVER GRADES of 1 to 2 kilogrammes/tonne in addition to the high
   gold grades reported in veins Galadriel Sur and Julia.

*  DRILL TARGETS FOR NEW PROGRAMME are all identified,  with drill pads
   constructed and drills on site.


Chairman,  Richard Prickett comments, 'The outstanding success of this  year's
exploration  programme  has clearly indicated the enormous  potential of the
Company's  joint  venture.  The Company is in an excellent position to move
forward  into  the new year with money already raised for further exploration,
the drill programme in place and an increased land holding.'

Land Acquisition

Minera El Desquite (MED) has successfully concluded 'Option to Purchase'
agreements with:

* Cerro  Castilla,  a  Lonmin  subsidiary, for  its 'Nahuel Pan' mining
  tenements,  area 13,173 hectares, situated to the south of MED's  Cordon de
  Esquel properties, separated only by the Willimenco fault valley.  Nahuel
  Pan, although lightly explored is considered to be highly prospective with 
  large colour alteration areas and being along strike of the epithermal
  corridor in the Cordon de Esquel.

* Sunshine, a North American silver producer, for its Cordon de Esquel and
  Huemules exploration tenements of area 24,424 hectares.  The main tenement
  is situated immediately to the north of MED's Mayoco Cateo and contains
  several exploration targets defined from Satellite imagery.  The other two
  tenements are adjacent to  MED's Huemules properties and are, as yet, only 
  lightly explored but offer potential.

  Both Lonmin and Sunshine have recognised MED's dedication to the Esquel area
  and have opted to participate by awarding MED the 'Option to Purchase' at a
  modest entry price with a retained royalty on future mine production.
  
  MED also successfully claimed additional tenements over an area of 10,903
  hectares, within the Cordon de Esquel adjacent to existing properties.

Exploration

Intensive  field  exploration has identified the  presence  of  a  mineralised
corridor  four  kilometres long, with an average width  of  approximately  500
metres extending from the Elena vein at the southern boundary of the Cordon de
Esquel to the new discovery vein Beleriand to the north.

Within  this  corridor  seven discrete gold bearing  vein  systems  have  been
located.

Elena,  Gandalf  and  Ungoliant are grouped to the south separated  from 'The
Pinnacles' and  Galadriel  Sur  by  some 1,800  metres  over  the  watershed.
Galadriel and Beleriand, are further to the north.

A recently completed geochemical soil survey over the watershed has delineated
several  continuous mineralised zones indicating that Galadriel  Sur  and  the
Pinnacles  could persist for a further 1,200 metres to the south and  possibly
even  connect  with  Gandalf and Ungoliant.  The soil anomalies  within  these
zones were high, up to 850 ppb, and were supported by float and subcrop.

Subsequent  construction of drill pads and roads has uncovered deep weathering
and structural evidence within these zones to add further support.

Pathfinder  elements  and textural evidence suggest a totally  preserved  gold
reporting zone may be present on the high watershed between Ungoliant and  the
Pinnacles.

To  the  west  of the main corridor mapping and prospecting have extended  the
veins  Julia  and  Antonia both along strike and laterally.  The  high  grades
(Julia  up  to  100g/tau, Antonia 48g/tau), together with the potential  large
tonnage  available  for  open caste mining makes these  two  systems  priority
drilling targets for this coming season.

'First  pass'  exploration has been carried out over the  northern  properties
with several promising discoveries requiring follow up works.

In  the  northern Mayoco Cateo a massive breccia complex (La Cupula) has  been
identified measuring some 3 kilometres long by 1 kilometre wide with up to 200
metres vertical relief.

The system contains reportable but low gold values probably due to  an  acid
leach  effect.  However, the potential of the system is supported  by  visible
gold in pan concentrates from drainage around the flanks of the complex.
Follow up work will involve detailed mapping and sampling.

Bonanza Silver (See intersections)

Galadriel  Sur  and Julia veins are both reporting high to  very  high  silver
grades  which  will provide significant credits (1 to 3 g/t  gold  equivalent)
towards  resource/reserve estimates with resulting substantial  reductions  in
operating costs.

Resource Estimate

Completion of the 'Resource Estimate' (1999 drill programme) being carried out
by  Pincock Allen and Holt from Denver USA has been extended due to  the  late
inclusion  of the vein Julia together with the complexity of modelling  around
the  number  of  small, but valuable, veins adjacent to the  main  structures.
Anticipated completion is now the end of January.




                       MINERA EL DESQUITE GALADRIEL VEIN
                                       
Au                          GR58                         Ag

Sample No.  From  To   Interval  CODE  Grade   Grade  Wt.Ave   Wt.Ave
                                        Au      Ag       Au      Ag
15866      51.0  52.0  1.0       VMZ   20.30    51.60  20.30    51.60
  
15867      52.0  53.0  1.0       VMZ   29.40  1180.00  29.40  1180.00

15868      53.0  54.0  1.0    VMZ+DYK  20.10   811.00  20.10   811.00

15869      54.0  55.0  1.0      DYKE    2.24    17.7    2.24    17.70
    
15870      55.0  56.0  1.0    VMZ+DYK   12.10   61.70   12.10   61.70

15871      56.0  57.0  1.0       VMZ    12.30   68.9    12.30   68.90

15872      57.0  58.0  1.0       HMZ     5.11   14.8     5.11   14.80
    
15873      58.0  59.0  1.0       HMZ     2.06   14.8     2.06   14.80
       
                Totals 8.00                             103.61
2,220.5

              Au  INTERSECTION     8.0  m    @  13.0   g/t Au
                                                       
              Ag  INTERSECTION     8.0  m    @  278    g/t Ag

Intersections are not a true thickness
Intersection quoted are > 1 g/t > 2m



                  MINERA EL DESQUITE SAWN CHANNEL JULIA VEIN

Au                           JC2                         Ag

Sample No. Channel From  To   Interval  CODE  Grade  Grade  Wt. Ave  Wt. Ave
                                                Au     Ag     Au       Ag
19219      JC2     0.00  0.65  0.65     VMZ   25.40  49.00   16.51   31.85

19221              0.65  1.40  0.75     VMZ   30.20  126.00  22.65   94.50

19222              1.40  2.40  1.00     VMZ   18.80   91.70  18.80   91.70

                     Totals    2.40                          57.96
218.05

              Au  INTERSECTION     2.40  m   @ 24.2    g/t Au
                                                       
              Ag  INTERSECTION     2.40  m   @ 90.9    g/t Ag


19233     JC2    14.20  15.00   0.80    VMZ    2.57   27.10   2.06   21.68

19234            15.00  15.64   0.64    VMZ   17.20   45.60  11.01   29.18

19235            15.64  16.59   0.95    VMZ   27.70   64.30  26.32   61.09

19236            16.59  17.29   0.70    VMZ    8.62   43.30   6.03   30.31
 
19237            17.29  18.45   1.16    VMZ   25.20  314.00  29.23  364.24
 
19238            18.45  18.86   0.41    VMZ   15.90   56.80   6.52   23.29
 
                    Totals      4.66                         81.16
529.79
            
              Au  INTERSECTION     4.66 m    @ 17.4    g/t Au
                                                       
              Ag  INTERSECTION     4.66 m    @ 114     g/t Au


19239    JC2     33.36  33.99   0.63    VMZ   11.00  1890.00  6.93  1190.70
 
19241            33.99  34.40   0.41    VMZ   11.30   648.00  4.63   265.68

19242            34.40  35.05   0.65    VMZ   20.70   426.00 13.46   276.90
 
19243            35.05  35.55   0.50    VMZ    1.15    10.50  0.58     5.25
 
                    Totals      1.69                         25.02
1,733.28

              Au  INTERSECTION     1.69  m   @ 14.8    g/t Au
                                                       
              Ag  INTERSECTION     1.69  m   @ 1027    g/t Ag

Intersections are not true thickness
Intersection quoted are >2g/t > 1.5m