Botwood Basin

[Ed Monton]

Looks like I will have another one to add to the header:

Lima Acquires Additional Key Land Position In
Newfoundland

VANCOUVER, BRITISH COLUMBIA--

INTERNATIONAL LIMA RESOURCES CORP. is pleased to announce that an
agreement has been reached with a private individual for an
option to acquire a 100% interest in the North Paul's Pond gold
property in North-Central Newfoundland. The Cornerstone
Capital-Candente Resources property, which is contiguous with
Lima's North Paul's Pond property to the south, is reported by
Cornerstone Capital (News Release-July 24, 2002) to 'straddle a
significant magnetic/structural feature' which is parallel to the
Altius Minerals/ Barrick structural trend. Their main prospect,
the Goose Zone, has returned trench values of 4.06 g/t gold over
1.3 m and 1.28 g/t gold over 5.6 m. Previous drilling by Noranda
obtained up to 3.14 g/t over 2.5 m and 7.54 g/t gold over 1.0 m.
These results in conjunction with Lima's North Paul's Pond assays
indicate a significant regional zone of poorly-explored gold
mineralization.

The property has not been explored in recent years. In the 1980s,
Noranda Exploration Company Limited discovered 'float till raft'
gossan material on the north side of Paul's Pond carrying visible
gold and grab samples assaying up to 10.8 g/t gold. Assays from
float boulders returned assay results of 10.8 g/t, 4.2 g/t, 3.9
g/t, 4.8 g/t and 5.2 g/t gold over an area of 2.5 km by 1.5 km.
Many other boulders with vein material and alteration were also
located in the general area. Limited recent work confirmed the
assays in the vicinity of the till raft and soil sampling on two
grid lines produced five anomalous areas and several other
occurrences of angular float.

Lima's North Paul's Pond property (NTS 2D/11) consists of 6
licenses totaling 55 claims (1375 Hectares) and is located
approximately 50 km southwest of the town of Gander. Access to
the property is excellent; an upgraded logging road crosses the
property and connects northwards with the Trans-Canada Highway at
Glenwood.

The option agreement calls for exploration expenditures of
$300,000, the issuance of up to 130,000 common shares and cash
payments of $32,000 to the vendor, spread over a three year terms
with the majority of such commitments being due in years two and
three of the agreement term. The vendor has retained a 1.5% NSR.

Lima's North Paul's Pond property is strategically located in the
Botwood Basin on the southern extension of the
northeasterly-oriented Altius-Barrick 'Mustang' Trend, which has
been the focus of intense exploration interest in the past few
years. Comparison of this regional feature to the prolific gold
belt in Nevada and the participation of the major gold company
have led to a staking rush and very active junior company
exploration activity.

Lima's North Paul's Pond property straddles the contact between
two groups of sediments of Ordovician-Silurian age, the coarser
clastic Davidsville Group to the southeast and the Botwood Group
to the northwest which is finer in grain size and more
carbonate-rich in composition. This zone is the locus of several
gold prospects in the area of Gander to the north. In addition,
many dykes, sills and small intrusive plugs of gabbro appear to
intrude the many faults which lie within the belt.

Lima plans an aggressive program of geophysics, soil sampling and
float prospecting to upgrade the North Paul's Pond prospects to
drill status.

Mark J. Morabito, Lima's President states "The acquisition of the
North Paul's Pond land position in the strategic Botwood Basin
adds another dimension to our existing extensive claim holdings
in Newfoundland. Lima believes in the potential of the Botwood
Basin and will continue to add to its property portfolio in the
area in the coming months, with more acquisitions expected
throughout the summer".

A finder's fee is payable. The North Paul's Pond agreement is
subject to regulatory approval.

ON BEHALF OF THE BOARD

"Jack Marr"

Senior V.P. Exploration

-30-

FOR FURTHER INFORMATION PLEASE CONTACT:
International Lima Resources Corp.
Lima IR Hotline
[phone]
[phone] (FAX)
[e-mail]
www.newfoundlandgold.com
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News Release.