NIKOS EXPLORATIONS LTD. (the “Company”) is pleased to announce that, further to its news release dated January 14, 2004, the Batchewana Group and Falconbridge Ltd. (“Falconbridge”) have agreed to the assignment of the Coppercorp and Island Copper properties, respectively from Amerigo Resources Ltd. (“Amerigo”) to the Company. Amerigo currently holds options to earn a 100% interest in the Coppercorp property and a 55% interest in the Island Copper Property.

In connection with the acquisition of the Coppercorp property, the Batchewana Group has agreed to accept the following consideration in lieu of common shares in the capital stock of Amerigo and cash payments pursuant to an Option Agreement as amended May 14, 2003 (the “Coppercorp Agreement”):

• Upon receipt of TSX Venture Exchange approval of the transaction, 300,000 units of the Company and a cash payment of $24,000. Each unit will be comprised of one common share in the capital stock of the Company and one-half share purchase warrant, with each whole warrant entitling the holder to purchase one additional common share in the capital of the Company for a price of $0.30 for a period of two years from the date of issuance. Should regulatory approval to the transaction remain outstanding on May 11, 2004, the Company will pay $12,000, representing half the initial cash payment;
  
  
• an additional 200,000 common shares in the capital of the Company and a further cash payment of $24,000 on or before May 11, 2005; and
  
  
• an additional 200,000 common shares in the capital of the Company and a further cash payment of $24,000 on or before May 11, 2006.

The Company will assume the remaining work commitments on the Coppercorp property which amount to $100,000 dollars each year over the next three years.

In connection with the acquisition of the Island Copper property, Falconbridge has agreed to the following consideration in lieu of common shares in the capital stock of Amerigo pursuant to an option/joint venture agreement dated January 21, 2002:

• Upon receipt of TSX Venture Exchange approval of the transaction, 150,000 units of the Company, with each unit comprising one common share in the capital stock of the Company and one share purchase warrant, with each such warrant entitling the holder to purchase one additional common share in the capital of the Company for a price of $0.30 for a period of two years from the date of issuance;
  
  
• at the election of the Company, on or before January 21, 2005, a further 150,000 common shares in the capital of the Company or a cash payment of $30,000; and
  
  
• the Company spending no less than $100,000 in exploration on the Island Copper property prior to January 21, 2005 or, if the full expenditure is not made, making a cash payment to Falconbridge for the remaining portion.

The exploration targets on the Coppercorp and Island Copper properties are bulk tonnage iron oxide copper-gold deposits. Island Copper, the more advanced of the two properties, is located approximately 20km north east of the port city of Sault Ste Marie. Infrastructure is excellent with 2 paved highways crossing the property and the Algoma Central Railway Line running along the southern border.

Drilling during the 1960s and early 1970s intersected copper and gold-bearing rock, grading up to 4.02% copper over 9.5 metres that included 6.22% copper and 1.7 g/tonne gold over 3.05 metres. Recent exploration by Falconbridge outlined co-incident east-west trending gravity and chargeability anomalies.

Follow up work by Amerigo identified a partly coincident east-west trending aeromagnetic anomaly. These anomalies are significant, since many iron oxide copper-gold deposits elsewhere in the world have been discovered by drilling such anomalies.

A four-hole drill program by Amerigo intersected sulfide mineralization in all four holes. The best copper values were found in a near surface intersection of 8 meters that graded 1.5% copper and 0.2 grams/tonne gold and included 4.44% copper and 0.5 grams/tonne gold over two meters.

The Coppercorp property covers an area of 32 square kilometres and includes the site of the past producing Coppercorp mine. Over 1 million tonnes of ore at an average grade of 1.16% Cu, along with gold and silver credits was produced between 1965 and 1972. Following the mine closure in 1972 very little exploration was carried out until Amerigo optioned the property in late 2002.

An airborne magnetic survey flown for Amerigo in early 2003 revealed several aeromagnetic anomalies on the property including a large (three by three kilometre) magnetic high that straddles the northern property boundary, as well as two north-northeast trending magnetic highs in the vicinity of the old mine workings. The number of copper occurrences that occur on the property further illustrates the property’s potential. A regional sampling program undertaken by Amerigo resulted in 19 samples grading more than 1% copper and seven samples grading more than 1 g/tonne gold, including values up to 10.71% copper over 0.6 metres and 3.34% copper and 3.3 grams/tonne gold over 0.45 metres.

The transactions referred to herein are subject to TSX Venture Exchange approval.

ON BEHALF OF THE BOARD OF DIRECTORS OF
NIKOS EXPLORATIONS LTD.

“Peter Dunfield”
Peter Dunfield,
President and Director

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