Drilling Report

Pan Andean Resources PLC
30 May 2000



Parker Drilling have informed Pan Andean that the mobilisation of Rig 117 to
the Chipiriri drill site in Bolivia is proceeding well but is slower than
contracted.  Parker have given a drill start up date of 10th June.

Moving 75 truckloads of equipment, some of it heavy, along a new 29 km road
into unknown swampland is a challenge but Parker are used to operating in a
difficult environment. Road conditions have proven more difficult than they
anticipated .A short stretch of the road needed hardcore strengthening.
Fording rivers swollen by the rains has taken time. Pan Andean incurs no
additional costs as a result of the delay.

Once drilling commences the estimated drill time is 45 days to a target depth
of 3750 metres.