Drilling Report

Brancote Holdings PLC
22 January 2002



Date:          22nd January 2002


Contacts:      Richard Prickett, Chairman
               Bill Humphries, Managing Director
               Brancote Holdings PLC                      020 7493 1002


               David Bick
               Holborn                                    020 7929 5599
               [e-mail]




                               BRANCOTE HOLDINGS PLC

                          Esquel Gold Project (76.4%)
   Progress Report on the Phase V Drilling Programme and Feasibility Study.



Feasibility infill drilling.

Close spaced drilling on the 80 metre long southern extension of Galadriel has
confirmed the continuity of this wide, high-grade vein and has extended it a
further 25 metres to the south.

This, previously largely inferred, section of Galadriel can now be advanced to
the measured and indicated categories for inclusion into the mining reserve.



Results from the southern extension of Galadriel include;



                                                                         Table 1
                                                             Galadriel Sur Diamond Core Drilling

Hole                 Easting        Northing         Depth          From          Intersection   Grade
Ndegrees             156            525              metres         metres        metres         g/t gold

GD 343                5136.8         2944.4           48.5           29.4             7.8          21.3
GD.344                5143.7         2910.6           38.0            7.4            20.2          13.3
GD 345                5156.6         2882.8           61.0            7.0             9.8          12.4
GD 346                5147.4         2881.5           75.9           40.3             8.7          11.8
GD.347                5133.7         2880.5           79.2           39.4            26.3          13.6
GD 348                5122.8         2909.3           69.5           40.6            13.7          13.8
GD 351                5132.4         3044.7           29.0            2.4            12.7          26.2
GD.356                5153.6         3052.5           85.0           46.2             7.6          41.4



Drilling, using two diamond drill-rigs, is continuing at Julia and on the
southern extension of Galadriel Sur.

To date, 6809 metres of the programmed 10080 metres of Feasibility infill
drilling has been completed.



La Joya Del Sol Resource Drilling

The resource drilling programme on the four larger veins, Sirena, Natasha,
Anastasia and Ivana within the La Joya Del Sol vein field, is now complete with
a total of 4239 metres of reverse circulation drilling being carried out to
infill and confirm the 5000 metre diamond drill programme completed by Sunshine
Mining in 1997/8.

The flat lying Sirena vein continued to return high grade intersections
including several at depth on previously untested structures.



Further results received include;

                                                                        Table II
                                                             Sirena Reverse Circulation Drilling

Hole               Easting        Northing        Depth          From         Intersection   Grade
Ndegrees           156            525             metres         metres       metres         g/t gold

SR 10               5905.6         9608.4          103.0          4.0               8.0         11.8
SR 13               5884.3         9526.7           24.0          2.0              12.0         10.8
SR 20               5860.0         9472.8           25.0          5.0               7.0         11.9
SR 24               5886.4         9400.2           39.0          0.0              13.0          5.1
SR.26               5836.4         9410.4           40.0         26.0               5.0         16.6
SR 35               5887.4         9598.1           40.0         27.0               4.0         23.0



Full Feasibility

Mr Quayle Lusty, a Mining Engineer from Washington - USA, has been appointed
Director of Project Development for the Esquel Gold Project. Mr Lusty has
extensive management experience with major gold mining developments in the
United States and South America, including:

-  Project General Manager Cortez 'Pipeline' Project Nevada, for Placer Dome, an
8.000 STPD gold mine and mill project for a budget of US$319 million. This
project was completed 3 months ahead of schedule and US$70 million under budget.

-  Project General Manager, La Coipa Mine, Chile for Placer Dome. A 16,500 STPD
gold-silver mine and mill project for a budget of US$250 million. This project
was completed on schedule and US$21 million under budget.



Mr Oscar Mignorance, a Chartered Accountant from Buenos Aires - Argentina, has
been appointed Chief Financial Officer of MED. Mr Mignorance has experience with
mining feasibility studies, the Mining Investment Law of Argentina and the
Argentine Tax Codes and their specific implications for the mining industry
gained as Financial Controller for Sunshine Argentina in the development of the
Pirquites Silver Project



Mr Lusty and Mr Mingorance both commenced their engagement with MED on January
16th.

A new office has been established for the Esquel Gold Project in Esquel.



                                    - ENDS -






Geological information in this report has been compiled by Marc J. Sale, who:

- Is a consultant to Brancote Holdings plc;

- Has relevant experience in relation to the mineralisation being reported on to
qualify as a Competent Person as defined in the Australian Code for Reporting of
Identified Mineral Resources and Ore Reserves;

- Is a member of the Australian Institute of Mining and Metallurgy and has more
than five years experience in this field of activity reported herein;

- Has consented to the inclusion of this data.



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