Armistice Resources to Acquire Former Kerr-Addison Mine Property

	    <<
	    -   The Kerr mine, once Canada's largest gold producer, produced more
	        than 11 million ounces from 1938 to 1996
	    -   The Kerr property has considerable unrealized potential for further
	        gold production along four miles of strike on the Larder Lake -
	        Cadillac Break
	    -   There has been no work on the Kerr property since the mid 1990's and
	        exploration prior to that was very confined
	    -   Significant reserves and resources previously identified in 1996
	        report (not compliant with current NI 43-101 requirements)
	    -   Property adjoins Armistice Resources' McGarry Mine gold project in
	        Kirkland Lake area
	    >>

	    TORONTO, Jan. 8 /CNW/ - Armistice Resources Corp. (TSX: AZ), which is
moving rapidly toward beginning gold production at its McGarry Mine in the
Kirkland Lake area of Northeastern Ontario, today announced that it has signed
a Letter of Intent with a group of private investors to provide the company
one year to complete due diligence and sign a definitive option agreement for
the purchase of up to 100 percent of the ownership of the Kerr Mine workings
and related mineral properties totalling in excess of 2000 acres. The Kerr
property adjoins Armistice Resources' McGarry Mine gold project and covers 4
miles of strike straddling the prolific gold producing Larder Lake - Cadillac
Break. Please see maps at http://files.newswire.ca/670/Armistice.pdf.
	    "This is an enormously exciting step forward for Armistice Resources,"
said Todd J. Morgan, President and Chief Executive Officer. "We have been
successful in negotiating a deal that we see as being very beneficial for
Armistice Resources. The completion of this acquisition will immediately make
Armistice Resources a much larger company and offer us an opportunity to
generate increased value for our shareholders.
	    "We are confident that the Kerr property has a considerably larger
potential for gold production than previously has been realized or identified.
As the result of our development of the McGarry Mine project on claims that
adjoin the Kerr property, we have a very good understanding of the geological
characteristics of the area and the potential for identifying additional gold
zones.
	    "We also are encouraged that, with the climb in the price of gold, a
number of former mines have successfully been brought back into production. As
the Kerr property is adjacent to our current operations, we believe that we
can realize economies in conducting exploration and development programs on it
in conjunction with our McGarry Mine operations," Mr. Morgan continued.
	    "The acquisition of the Kerr property is consistent with our strategy to
build a portfolio of mineral resource properties that provide synergies and
grow our company by creating long-term and sustainable value for our
shareholders," Mr. Morgan said.

	    Terms of the Transaction

	    On signing the agreement, Armistice Resources paid $100,000 to the group
of private investors. If Armistice Resources proceeds with the purchase, it
will execute a five-year option agreement. At the time that the definitive
formal option agreement is signed, Armistice Resources will make the first of
five annual payments of $500,000 to the private investors for a total of $2.5
million, and will issue 2,000,000 common shares to the group. Armistice
Resources also will be required to pay a 2% net smelter royalty on gold
production, except for an area identified in an internal report prepared by AJ
Perron Gold Corp. dated October 21, 1996 as containing proven and probable
reserves which, are subject instead to a 3% net smelter royalty.

	    The Kerr Property

	    The Kerr Property is located in the heart of the Larder Lake - Cadillac
Break, which is a major crustal feature with which all the gold deposits from
Val d'Or to Kirkland Lake are directly or indirectly associated. Total gold
production from mines along the Cadillac Break exceeds 95 million ounces.
Mines along the Larder Lake - Cadillac Break continue to be significant gold
producers.
	    The Kerr property adjoins Armistice Resources' McGarry Mine project to
the east. The Kerr Mine produced approximately 11 million ounces of gold
during a 58-year operating life from 1938 to 1996. Gold-bearing zones within
its extensive mineralized system were mined from surface to a depth of 4,500
feet, and over a strike length of about 3,200 feet. Following a number of
corporate reorganizations, a group of private investors acquired the Kerr
properties in 1996.
	    After the shutdown of production in 1996, AJ Perron Gold Corp. completed
an internal inventory of mineral resources for the Kerr Mine dated October 21,
1996 and authored by Chief Geologist M. Hasan, M.Sc., FGAC and General Mine
Superintendent R.R. Gagnon, P.Eng. (the Kerr Report). The review in the Kerr
Report was not compliant with the current National Instrument 43-101 or CIM
Mineral Resource standards and therefore cannot be relied upon. A qualified
person has not done sufficient work to classify the historical estimate as
current mineral resources.
	    In addition, the review for the Kerr Report was made at a time when the
surface and underground infrastructure was still in place and serviceable.
This is no longer the case since all surface structures, including the
hoisting plant and mill, have been raised and the mine workings are flooded.
Therefore, Armistice Resources does not consider the mineral resources data to
be current. The historical mineral resources in the Kerr Report were
summarized as:

	    <<
	    Proven + Probable
	     Reserves             771,000 tons @ 0.110 oz Au / ton   84,500 oz Au
	    Possible Reserves   1,299,000 tons @ 0.124 oz Au / ton  161,800 oz Au
	    Additional Mineral
	     Inventory          3,051,000 tons @ 0.150 oz Au / ton  457,600 oz Au
	    >>

	    The authors of the Kerr Report state that the "parameters and formulas
used for ore reserve calculations have been historically established and are:
calculated on longitudinal sections using a tonnage factor of 12 cubic feet
per ton; applying a minimum dilution of 15 percent at nil grade; applying a
cut-off grade of 0.06 ounces gold per ton; and cutting high values to 0.72
ounces gold per ton in the carbonate ore and 3.00 ounces gold per ton in the
flow ore."
	    "The significance of the historical mineral resource estimated in the
Kerr Report in today's context is to show the larger potential for the
discovery of new economic gold resources on the Kerr Property," said Erik
Andersen, Vice President, Chief Operating Officer and Qualified Person under
NI 43-101. "The resource estimate was made using parameters consistent with a
long history established while the mine was in production. The Kerr Mine was
in production right to the time that creditors forced a foreclosure during a
period of low gold prices. The work highlighted in the Kerr Report
demonstrates that new gold zones were being actively explored and developed
for production both very close to the active workings (G1 & G2 Zones), across
strike (Mill Zone) and along strike to the east (Chesterville East). These
areas are expected to form a major focus for future exploration programs by
Armistice Resources. In the meantime, Armistice Resources will concentrate on
compiling the historical geological data in the Kerr archives. Based on the
expected volume of data to be compiled and analyzed, this is expected to take
up to a year."

	    Qualified Person

	    Erik Andersen, P.Eng., Vice-President and Chief Operating Officer of
Armistice Resources and a Qualified Person as defined by National Instrument
43-101, has reviewed and approved this news release.

	    About Armistice Resources Corp.

	    Armistice Resources, a Canadian-based exploration and development
company, is moving rapidly toward beginning gold production at its McGarry
Mine in the Kirkland Lake area of Northeastern Ontario. The McGarry Mine is
located in Virginiatown on the prolific Larder Lake-Cadillac Break that
extends 200 km east-west straddling the Ontario and Quebec border and that has
produced 95 million ounces of gold. The McGarry Mine is adjacent to the
Kerr-Addison Gold Mine that has produced more than 11 million ounces of gold.
The McGarry Mine consists of 33 contiguous patented mining claims, including
three licenses of occupation, totalling 484 hectares. The McGarry Mine is
fully permitted and all equipment and systems at the site have been brought up
to standards, including its installed mining plant. Armistice Resources
intends to commence gold production at the McGarry Mine within about the next
year, subject to obtaining the necessary additional capital required to
finance the mine's operations. Armistice Resources is listed on the Toronto
Stock Exchange (Symbol: AZ) and currently has approximately 76,648,852 million
common shares issued and outstanding. To find out more about Armistice
Resources, please visit the company's website at www.armistice.ca.

	    Forward-Looking Statements

	    This news release may contain forward-looking statements based on current
expectations. These forward-looking statements entail various risks and
uncertainties that could cause actual results to differ materially from those
reflected in these forward-looking statements. Such statements are based on
current expectations, are subject to a number of uncertainties and risks, and
actual results may differ materially from those contained in such statements.
The historical mineral reserve and resource estimates reported in this press
release relating to the Kerr Property are not compliant with National
Instrument 43-101 and cannot be relied upon. Additional exploration activities
and completion of mineral resource estimates in accordance with National
Instrument 43-101 may differ materially from those reported in this press
release. These uncertainties and risks include, but are not limited to, the
strength of the Canadian economy; the price of gold; operational, funding, and
liquidity risks; the degree to which mineral resource estimates are reflective
of actual mineral resources; the degree to which a pre-feasibility study gives
sufficient grounds for classifying the indicated mineral resources as probable
reserves; and the degree to which factors which would make a mineral deposit
commercially viable are present; the risks and hazards associated with
underground operations. Risks and uncertainties about Armistice Resources'
business are more fully discussed in the company's disclosure materials,
including its annual information form and MD&A, filed with the securities
regulatory authorities in Canada and available at www.sedar.com and readers
are urged to read these. Armistice Resources assumes no obligation to update
any forward-looking statement or to update the reasons why actual results
could differ from such statements.






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	    /For further information: Investor and Media Relations, Richard W.
Wertheim, Wertheim + Company Inc., Email: wertheim@wertheim.ca, (416)
594-1600, (416) 518-8479 (cell)/