AUGUST 5, 1998

[Franko10 ™]

NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: ANGLO MINERALS LTD.
ASE SYMBOL: ALM
AUGUST 5, 1998
Anglo Announces Conditional Approval of Acquisition of
Firebag Coal Project
CALGARY, ALBERTA--Anglo Minerals Ltd. (ASE-ALM) is pleased to
announce that it has received the conditional approval of The
Alberta Stock Exchange (the "Exchange") for the acquisition by
Anglo of the Firebag Coal Project located near Fort McMurray in
Northern Alberta. The acquisition cost will be $2,550,000,
payable by way of the issuance of 25.5 million common shares of
Anglo at an ascribed value of $0.10 per share. Certain of such
shares will be received by Mr. Todd Montgomery, the President and
a director of Anglo, and 90 percent of all of such shares will be
subject to a performance escrow agreement satisfactory to the
Exchange. With respect to the escrowed securities, the basic
terms of the performance escrow agreement which will be entered
into are as follows:
1. 5 percent of the shares will be released from escrow upon a
positive response from Alberta Energy to the "Preliminary
Disclosure" portion of the approval process for a major coal
mining development in the Province of Alberta;
2. 15 percent of the shares will be released from escrow upon
independent confirmation that 150 million metric tonnes of drill
indicated reserves are present within the property and submission
of auditors confirmation that a minimum of $700,000 has been
incurred in deferred exploration costs upon the property;
3. 20 percent of the shares will be released from escrow upon
receipt of a Mine License, Development and Reclamation Approval
from Alberta energy to the project, including all required
environmental permits and consents for the construction of the
mine and related power plant; and
4. 50 percent of the shares will be released as to one third per
year from the date of receipt of Mine License, Development and
Reclamation Approval from Alberta Energy to the project.
The Firebag Coal Project contains 328 million metric tonnes of
Lignite Class A 9500 Btu coal. The company intends to raise
additional funds for the future development of the project,
including the pursuit of the regulatory approvals required for the
development of a mine and power plant.
The proposed acquisition is subject to the satisfaction of a
number of conditions precedent, including appropriate due
diligence inquiries and investigations, the approval of the
Anglo's independent shareholders and the final approval of the
Exchange.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Anglo Minerals Ltd.
Todd Montgomery
President and Chief Executive Officer
[phone]
[phone] (FAX)
The Alberta Stock Exchange has neither approved nor disapproved of
the information contained herein.