Canico Resource Corp (CNI)

[Frank Pembleton]

Canico Resource Corp.: Onca Drill Results on Track

VANCOUVER, BRITISH COLUMBIA--Canico Resource Corp. is pleased to announce the results from another series of holes in Canico's ongoing drill program at Onca ridge, part of the Onca-Puma nickel laterite project in Para State, Brazil. Nickel assays from holes which cut the mineralization again continue to be in line with or exceed expectations based upon previous work.
Abundant nickel laterite continues to be present along the strike length of the Onca ridge as the drilling continues eastward. Highlights in the current series of holes include hole 3370 which carries 2.27% nickel over 18.35 meters, hole 3376 which ran 2.42% nickel over 12.75 meters, hole 3381 which returned 2.90% nickel over 16.5 meters and hole 3391 which assayed 2.47% nickel over 17.4 meters.

A table of the results reported at a 1.5% nickel cut-off and a location map are attached to this release. A complete tabulation of the composited nickel assays from Canico's programs to date, site maps for all drill holes, a description of Canico's analytical techniques and methodology, particulars of historical and recent mineral resource estimates for the Onca-Puma property and other related information may be found on Canico's website at www.canico.com. As well, a table of assay results for the holes to date at Onca at a 1.0% nickel cut-off has been added to Canico's website.

About 17 kilometers of the prospective 20 kilometer strike length of Onca ridge has now been tested in the 400 widely spaced holes reported to date from the planned 500 hole Phase 1 Onca program. Today's results, together with those reported in Canico's news releases dated February 24, 2003, March 7, 2003, April 4, 2003 and May 6, 2003, continue to demonstrate that the mineralization at Onca is thicker, more continuous and considerably more extensive than previously estimated.

"Results of our Onca drilling continue to be excellent," said Michael Kenyon, President & CEO of Canico. "A new resource calculation for Onca will be calculated from the results of this program. As well, our Phase 2, 35,000 meter in-fill drilling program is now underway. There are 8 rigs currently working at Onca-Puma and another 4 rigs are scheduled to arrive on site as soon as they are available."

CANICO RESOURCE CORP.
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