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Exploration Update, Red Mountain Yukon and Pinaya, Peru

June 23, 2004

ASC Industries Ltd. has provided the following 2004 exploration updates on its two gold exploration properties.

Red Mountain, Yukon Territories

The Red Mountain property, located in the Mayo mining district, Yukon Territories, comprises 52 mineral claims. As reported in Stockwatch on June 14, 2004, the company negotiated an option agreement, subject to regulatory approval, to acquire a 50-per-cent interest in the Hobo Creek, Red Mountain, area group of claims (234 claims) owned by Regent Ventures Ltd. The Regent claims adjoin the company's Ice claims immediately to the north and northeast. The acquisition will result in a contiguous claim group comprising 286 claims totalling approximately 5,500 hectares. To date the company has expended approximately $1.3-million in exploration expenditures on the Ice claims. Regent Ventures has expended approximately $2.6-million on its claims to date.

The 2004 exploration season will see approximately $800,000 spent mainly on drilling costs. The 2004 program will target and confirm the significant gold values encountered in the Jethro structure during 2003. The first drill hole (DDH04-13) is located 25 metres southwest of DDH03-12, which had intersections of 0.88 over 102 metres. The hole contained highlights of 15.35 grams per tonne gold over 2.29 metres and 8.71 g/t gold over one metre.

The 2004 drilling program was mobilized mid-June, 2004, and as of today, DDH04-13 is down to 122 metres (400 feet). The hole has confirmed the Jethro structure and the Tombstone suite. Considerable intense alteration of the Tombstone quartz monzonite has been encountered. In DDH03-12, this style of alteration produced assays of 15.35 g/t gold over 2.29 metres. Approximately 300 feet of care has been sent for assay. Lithological core analysis and assay results will be disclosed as they become available. DDH04-13 is planned to go as far as 305 metres (1,000 feet).

In addition, drilling will also be done on the Treadwell structure, near DDH03-39, a 1,500-foot hole on Regent Ventures claims immediately to the northeast of the Ice claims. DDH03-39 produced 2.74 g/t gold over 0.80 metre, 1.01 g/t gold over 12 metres, 2.12 g/t over 6.55 metres, 2.04 g/t gold over 1.10 metres and 11.3 g/t gold over one metre at the bottom of the hole. In addition 16.97 ounces per ton silver occurred together with the high-gold values at depth. Drilling will confirm the extent of mineralization at depth.

Pinaya, Peru

The Pinaya gold project is located in Southern Peru, approximately 110 kilometres northeast of the city of Arequipa. It is road accessible and lies within seven km of the BHP-Billington Tintaya mine road. The project comprises seven mineral concessions covering more than 4,000 hectares or 40 square kilometres.

The Pinaya gold project is located in an emerging gold district in Southern Peru and is within 40 km to the south of AngloGold's recent discovery at Rescatada. Pinaya is within the same geological belt as Rescatada, which is an epithermal gold deposit.

Gold mineralization at Pinaya is hosted by early Tertiary-aged Puno group volcanics and sediments. It is considered a structurally controlled epithermal gold deposit. Limited sampling and mapping of the main gold zone by the company has shown it to have a strike length of more than 2.7 kilometres. A total of 27 samples, including grab samples, one-metre chips and three-metre chips, were collected from within the area of the open cut and returned an average of 1.47 g/t gold. As most of the samples were collected from the wall rock, it clearly indicates a bulk mining potential. Higher-grade structures within the open cut have returned from two to six g/t gold across widths of one and three metres.

Limited mapping and sampling outside of the main gold zone, has returned a number of highly anomalous gold values, indicating potential for a number of parallel gold structures. In addition, seven samples, averaging one g/t gold, were collected from tailings dumps at the property. The tailings dumps are estimated to contain about 100,000 tonnes of material.

An environmental review and a National Instrument 43-101 report on the geology and mineralization of the Pinaya gold project is now complete.

Field crews were mobilized during the first week of June, 2004, to begin a comprehensive exploration program of the Pinaya gold project. To date they have established a grid over the main open pit and surrounding areas in preparation for a soil geochemical survey. Existing trenches have been cleaned out and are currently being mapped and sampled. Also, in preparation for a drill program anticipated for August, 2004, arrangements are being made for an induced polarization geophysical survey to be completed over a portion of the main mineralized zone. Assays will be released as they become available. Approximately $400,000 is budgeted for the 2004 season.

Further updates will be available as the 2004 exploration season progresses.

This press release was prepared on behalf of the board of directors, which accepts full responsibility for its contents.

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