September 26, 1997
Trading Symbol: CYR (ASE)

Labrador VBE-1 Program Update

VANCOUVER, BRITISH COLUMBIA--Columbia Yukon Resources Ltd. (the "Company") as operator and International CanAlaska Resources Ltd. report that drill hole 97-6 is at a depth of 1,418 metres, proceeding to its targeted depth of 1,500 metres. Drilling of hole 97-7 is underway located in the northwest of VBE-1 property. The hole has been collared in leuconorite and at its current depth of 31 metres is encountering fine grained disseminated sulphides (pyrrhotite and pyrite). This hole has been sited to test the most mafic rocks exposed on the property, in an area where several showings of nickel-copper sulphides were located in the 1995 - 1997 programs by Northeast Exploration services and MPH Consulting Limited.

The deep drilling program on the VBE-1 claim block is testing for potential eastward extensions of the massive sulphide mineralization being developed on the neighbouring property by Inco. Down hole probing of drill holes 97-4 and 97-5 was incomplete because of equipment failure. The final evaluation of the data may include a re-survey of these holes when 97-6 and 97-7 are completed and surveyed.

The location of hole 97-7 was selected because the geological setting indicates that this structural block may be unroofed by erosion to expose deeper levels in the favourable intrusive rocks. Possible deep geophysical targets in the area appear to be masked by the close proximity of a sea inlet. The conductivity of salt water causes its own large anomaly all along the coast line. Drilling will continue to a targeted depth of 1,500 metres, and is expected to be completed before the end of October.

ON BEHALF OF THE BOARD OF DIRECTORS

MICHAEL S. GUSTAVSON, DIRECTOR

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