Drilling to commence on the Lonco Project

    VANCOUVER, Oct. 16 /CNW/ - Golden Peaks Resources Ltd. (TSX: GL). The
Company is pleased to report that, after one of the harshest winters in recent
history in Patagonia, Southern Argentina, the work program at the Company's
flagship La Fortuna property has resumed. At this time new drill rigs and
related equipment are being mobilized to the La Fortuna site and drilling will
resume once mobilization is complete.
    While work is ongoing at its flagship La Fortuna Gold Project the Company
is also taking steps to advance its earlier stage projects. In this regard the
Company is pleased to report that it has commenced a diamond drill program at
the Lonco Project, Nequen Province, Argentina.
    A diamond drill program has commenced on the Lonco Project at the Pino
Andino prospect targeting a series of west-trending structures, associated
with precious metal mineralization, over a horizontal distance (north to
south) of approximately 1,600 meters. The individual structures appear to be
components of a major, regional east-west shear zone. Reconnaissance sampling
in selected areas returned highly anomalous gold, silver, mercury and antimony
values suggestive of hitherto unrecognized epithermal precious metal
mineralization. The anomalous values are associated with quartz veining and
silicification in a sedimentary sequence intruded by Cretaceous-Tertiary aged
diorite intrusives. The Pino Andino prospect, which hosts a medium sized
porphyry copper-gold system associated with potassicaly altered diorite
porphyry, has never been explored for epithermal gold mineralization.

         Gold            Silver            Mercury    Antimony  Width
          g/t              g/t               ppm         ppb      m
          9.8        (greater than)200  (less than)2    1114    Float
          7.8             144.8         (less than)2     479    Float
          1.5        (greater than)200  (less than)2     285     Grab
          1.4             12.13               7           80     2.00
          1.4              9.87         (less than)2      69     0.45
          1.2             20.86               8          326     0.20
          0.3             10.79         (less than)2      83    Float
    (less than)0.01       38.04         (less than)2      87     0.20
    (Ref.: Press Release December 6, 2004).

    Said Chairman Scott Emerson: "Golden Peaks was an early entrant in
Neuquen province where it controls approximately 138,000 hectares of highly
prospective land in the Lonco and Oro projects. The Company has received
numerous enquiries from third parties interested in participating in the
Company's land holdings. Golden Peaks has conducted a number of
prospecting/evaluation programs in recent years and is pleased to have now
advanced to the stage of drilling several high potential targets."
    The drill contractor is Connors Argentina S.A. Split/sawn core samples
are being assayed by Alex Stewart (Assayers) Argentina S.A., a certified ISO
9002 laboratory.

    This press release has been reviewed and approved by Dr. Kieran Downes,
P.Geo., President of Golden Peaks Resources Ltd. and a Qualified Person as
defined by National Instrument 43-101, under whose direction the exploration
programs are being carried out.

    The TSX has not reviewed and does not accept responsibility for the
    adequacy or accuracy of this release.

    The statements herein that are not historical facts are forward-looking
statements. These statements address future events and conditions and so
involve inherent risks and uncertainties, as disclosed under the heading "Risk
Factors" in the company's periodic filings with Canadian securities
regulators. Actual results could differ from those currently projected. The
Company does not assume the obligation to update any forward-looking

For further information:

For further information: Media Information, contact: Scott Emerson,
Chairman and Director, SE@goldenpeaks.com; Investor Information, contact: Mike
Kordysz, Investor Communications, MK@goldenpeaks.com

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