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To: Stew who wrote (28)6/9/1998 9:37:00 AM
From: Mr Metals  Read Replies (1) of 39
+ US$1.5

HOURS 6 / 4 / 98

Anatolia Minerals (CDN: AMCD.U) has justified
our expectations with a
tremendous joint venture letter agreement with a
world-class major. Going
public only three months ago, Anatolia recently
announced a US$10 million jv
with Rio Algom Ltd. for joint exploration of its
outstanding base and precious
metal prospects in Turkey. Rio has to spend
US$10 million per property in
order to earn a 60% interest in either the
Yenipazar or Armutbeli projects.
Or, at Anatolia's option, Rio has to spend up to
US$27.5 million per property
and produce a feasibility study to earn a
maximum 70% interest in each
property. Under the letter agreement, Anatolia
will be the operator until Rio
earns a majority interest.

On top of this, Rio has agreed to purchase
US$1.5 million of Anatolia's shares
at a price of US$0.85/share. Of this amount,
US$1 million is to be directed to
exploration of the Yenipazar and Armutbeli
projects over an 18-month pre-earn-
in period. Rio also has the option to purchase an
additional US$2.5 million of
Anatolia shares at the then-current market price,
less a 10% discount to
extend the pre-earn-in period by 12 more
months. As well, Rio gets the right
of first refusal on other Anatolia projects during
an 18 to 30-month period.

Anatolia management says that its definitive letter
agreement with Rio Algom
will translate into a comprehensive formal
agreement and the private placement
at US$0.85 is to be completed no later than


If Anatolia had signed this agreement any time in
the prior two years, we
think its stock would be trading $3 to $5/share. In
the current depressed
markets it's understandable that the stock does
not properly reflect the
importance of this jv with a world-class major.
However, we have been
astonished that, with the news of this deal, the
stock showed little or no
reaction. Our conclusion is that the institutional
holders in the stock - who
have universally elected to get out of all mining
shares - are simply pushing
out all shares they hold regardless of values in
any particular deal. So, it's
no surprise that this exceptional stock is only
trading US$0.40 on strong
selling pressure. It's also no surprise that
sophisticated retail and
industry-oriented investors are buying it up avidly
at these levels.

Our opinion is that when the selling pressure dries
up this stock will rapidly
move toward the US$1.00 level - particularly with
the Rio Algom private
placement to be completed by mid-July at the
latest at a price of US$0.85.
While calculations of how much more stock
remains to be force-fed to the
market by institutions is necessarily imprecise, we
think that perhaps on a
worse case there may be up to an additional 1-1«
million shares to go before
this unseemly and unconsidered binge-selling
dries up. Accordingly, we
actively recommend aggressive purchase of this
stock in the first phase up to
US$0.60 per share; and thereafter, an aggressive
buy up to US$1.00 based on
the projected completion of the Rio Algom
agreement in mid-July.

Strong Anatolia projects:

1. AMDC is to Turkey what Newmont Mining
was to Peru. They were first in, and
grabbed off the richest mineral exploration
positions in the country. Right
now, Anatolia holds over 1.7-million hectares of
prospects in Turkey with
outstanding potential. This includes nine major
project areas with known
exciting mineralization, including:

(a) Yenipazar: 105,000-hectare polymetallic
volcanic massive sulfide (VMS)
prospect in central Turkey. Large base and
precious metal geochem anomaly near
ancient open-pit coincides with strong IP and
gravity. Four holes drilled at
the edge of anomaly all hit near-surface ore,
averaging 51 meters of 2.5% base
metals, 1.3 grams/t gold and 32 grams/t silver.
Best intercept is in last
hole, a 200-meter stepout, with 78 meters of ore
including top 14 meters at 5%
base metals, 8.4 grams/t gold and 141 grams/t

(b) Armutbeli: 35,000-hectare massive
copper/gold replacements, gossans and
shear zones in south-central Turkey. Intense
copper anomaly and gossan zone
over 3 square km (up to 10%+ copper, 1.2 grams
gold and 171 grams silver),
underlain by very strong shallow gravity anomaly.
Three dozen massive gossans
average 1.24% copper, 0.15 grams gold and 8
grams silver. Seven recon samples
of 2-kilometer-long shear zone ran 2-11 grams

(c) Bulancak: 9,400 hectares in a rhyodacite
dome near the Black Sea in
north-central Turkey. Square kilometers of VMS
and stockwork base metals
mined for over 4,000 years, with 12% copper
shipped in the 1960s. Recon
drilling and channel sampling gave up to 170
meters of 1% base metals and 3
grams silver.

2. AMDC's CEO, Dick Moores, is a proven
mine-finder. Prior to forming
Anatolia, he brought two major copper projects
into AZCO Mining (AMEX:AZC),
and identified and obtained financing for a major
Mongolian copper SXEW
project. Moores is a no-nonsense operator who is
highly regarded by the
fraternity of mining majors.

Risk/reward ratio is rated as outstanding for stock
bought in the US$0.60
range, and up to US$1.00. The stock closed June
3 at US$0.33/share. (The
company was financed at US$0.60 18 months
ago and at US$0.50 last fall).
Strong buy.


For immediate AMCD.U corporate information,
call 303-670-9945. Knowledgeable
U.S. broker is Ben Johnson at 800-547-4898.

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