A S.A. Advisory Special Report on
Ag Armeno Mines & Minerals Inc.

March 01, 1999

Subject:  Special E-mail from S.A.Advisory  concerning press release for AROYF

Note: This report was not produced by S.A.Advisory!  AROYF contracted us to release this
document to our e-mailer's for investor consideration.  The company has an active website,
namely,  http://www.agarmeno.com  .  Upon review of this document it will be easy to 
conclude that huge upside potential exists when considering the actual subject matter.
We received a $1500 fee exposing this specific opp.

                Specializing in Corporate Communications

         70-50 Austin St., ste 104, Forest Hills, N.Y. 11375

				(718) 268-3300

                   Ag Armeno Mines & Minerals Inc.
                #shares:  32 million  fully diluted
                         Vancouver  AGM.V
Recent  quote: 7-10 US
                   OTC Bulletin Board  AROYF
52 week range: 3-12 US

printed February 17, 1999
                       AN UNUSUAL SPECIAL SITUATION

This tiny  junior precious metals company is the minnow which has an
excellent chance  of  swallowing  the whale.  It has entered into an
agreement to acquire an 18% interest in  one of the largest, if not
the largest, recent copper-gold porphyry discoveries in the world.
This property is owned 45% by Newmont mining and 35% by Japan1s giant
Sumitomo Mining Corporation. It is being brought to production at a
cost of $1.9 billion.

In May, 1998 Armeno reached an acquisition  agreement with Jusuf
Merukh (Merukh) and  PT Pukuafu Indah  (PI),  a private Indonesian
company,  which owns 20 % of the BATU HIJAU  copper-gold mine located
east of Bali  on the island of Sumbawa.  The BATU HIJAU,  scheduled
for production at the end of 1999  presently contains mineable
reserves of  12 million ounces of gold and 10.6 billion lbs of copper.
Employing 4,000 workers, annual production for 25 years,  based on
current reserves, is estimated  at 550,000 ounces of gold and 540
million lbs of copper.  At  $285 gold and  75  copper  annual revenue
will  be  $560 million.  18% of this comes to a very significant
valuation,   a rough estimation of which is offered later in this
report.   The PI interest  is  a sweet ownership because it is not
responsible for any of  the start up costs of the mine.

PI,  the private Indonesian company is controlled by  Merukh, an
Indonesian business man,  who had  acquired  20% of the  BATU HIJAU
mine.  The  agreement, concluded in May, 1998,  was that Armeno would
buy 90% of the 20% interest  (effectively 18% in the BATU HIJAU)
leaving Merukh 2%, for payment of  $2 million and 50 million shares of
Armeno common stock.  It soon became apparent that Merukh was not
planning to honor the contract. In October, 1998 Armeno brought an
action against PI and Merukh.   On January 7, 1999 Armeno was granted
a default judgment  by the Supreme Court of British Columbia,  with
damages and costs to be assessed against PI.  A few days later a
default judgment was also granted against Jusuf Merukh personally.

On January 11, 1999 the court included Newmont Gold Company as a
defendant in the action based on written  evidence submitted by Armeno
that Newmont had attempted to interfere with the agreement between PI
and Armeno.   The filing against Newmont  stated that  the officials
of Armeno, along with Merukh, met with Newmont in June to brief them
and  assurances were given that Newmont did not object to the deal.
3Almost immediately after the meeting Newmont began engaging in
tortuous conduct directly interfering with the contractual relations
between Armeno and PI and Merukh.. . to repudiate the deal 3 .

Merukh claims that he wanted to develop his BATU HIJAU interest
through a junior Canadian company which he could control.  Armeno was
ideal and with 50 millions shares he would own over 70%  of the
company. One wonders, however,  if he was pressured by Newmont to
renege on his agreement.

It now looks like Armeno has both  PI  and Newmont over a barrel.
Having won the suit against PI and Merukh  Armeno expects to receive
either a huge monetary compensation or  the 18% interest in BATU HIJAU
without having to pay the $2 million or the 50 million shares.  By not
contesting the lawsuit Merukh and PI have  defaulted.  Theoretically,
Merukh might attempt to by-pass the British  Columbia courts and sell
his asset elsewhere.  But it is highly unlikely that he  could
successfully negotiate a new contract with the legal hazard hanging
over  the asset.   Any company  would be wary of legal entanglements
interfering with  an acquisition  under scrutiny by the Canadian

Armeno now awaits  the response  from Newmont to its  charges.  This
should occur by the end of February. The  Canadian  Courts have a
history of not being  sympathetic  to powerful mining interests raping
poorly financed junior companies.  For example, Murray Pezim1s
International Corona  defeated the giant Lac Minerals in court and
recently TVX Gold Inc. was defeated in an Ontario court  in a
confrontation with three individuals who claimed an interest in a
major property held by TVX.


Armeno's suit against PI, Merukh and Newmont is for damages and costs
for breach of contract and it has received a default judgment  against
PI and Merukh.   If PI and Merukh are unable to pay the costs imposed
by the judgment, they may only be able to offer their interest in the
BATU HIJAU in payment.

Should  Newmont  also be required to pay damages and costs to Armeno
the amount of these damages and costs would have to be assessed on the
basis of the value of the 18% interest in the BATU HIJAU which
Newmont1s  illegal action  intended to deny to Armeno.   The court
would appoint a referee to negotiate this value amongst PI  Merukh,
Newmont and Armeno.  The annual  average revenue from the BATU HIJAU
with gold at $285 per ounce and copper at 75 per lb is  $560 million.
Cash  costs are estimated at less than $270 million. Net comes to $290
million annually.  Based on these numbers the mine will generate $7.25
billion over the next 25 years.  18% of this comes to $1.3 billion.
Allowing for costs other than cash costs  and discounted at 15%  we
calculate the net present value of the 18% interest at plus or minus
$200 million.  The complications of establishing an accurate  net
present value are formidable therefore a final number which emerges
from negotiations may be considerably higher or lower than this
ballpark estimate.

In whatever proportion damages and costs are assessed on PI, Merukh
and Newmont  it is clear that  either a huge monetary settlement will
be offered to Armeno  or, alternatively,  PI and Merukh will be
required to surrender the 18% interest to Armeno.  A variety of
possible arrangements could develop. Newmont could buy out  the Merukh
20% interest and turn over 18% to Armeno.  In this event  the next
move would be for Newmont to buy Armeno and thereby  increase its
interest in the BATU HIJAU to  65%.   In another scenario Newmont
would buy Armeno first  and in that manner acquire the Armeno default
judgment against PI and Merukh which it would then exercise, again
eliminating PI and Merukh and increasing its position in the mine.


Anything can happen in the courtroom. Newmont   may not be found
guilty as charged.  Even found guilty   it might delay by appealing.
Merukh might find an unwary   buyer  whose country did not have
reciprocal  agreements with Canada and who, because of a ridiculously
low offering  price and the extraordinary value of the asset,  would
chance the intrusion of legal problems. However, since Merukh  failed
to contest the lawsuit against him he is apparently demoralized and
possibly  immobilized. Any effort  on his part to subvert  the court
ruling might  lead to suspicion of Newmont as an agent of continuing
collusion to  interfere with the court.  The Canadian courts do not
look kindly  on efforts to outwit their rulings and Newmont does much
business in Canada.

Also, as noted above, the outcome of a conviction may not be negative
for Newmont since it would  lead to the elimination of PI and Merukh
as a partner in the BATU HIJAU.  With Newmont and Sumitomo running the
show who needs PI and Merukh as a junior partner?  Of course, who
needs Armeno also as a junior partner ?

As far as Indonesia goes,  the country is desperate for income.
Regardless of the political future of the country it will need foreign
investment and an asset such as BATU HIJAU will be developed. Is it
possible that Newmont and Sumitomo invested $1.9 billion carelessly?
Newmont has other successful interests in Indonesia and is well


Armeno has a very strong position. The inevitable  cash infusion into
Armeno would result in an increase in the share value, currently
reflected in its 11 US price by a  huge factor.  If a cash settlement
of  $200  million to Armeno is the outcome or Newmont buys Armeno
this would equal approximately $6.25 per share of the presently fully
diluted issue.  That would be well over 50 times the current share
price.  However, there is no predicting  where negotiations will lead.
On the one hand, Newmont will probably attempt to  discount the $200
million. On the other hand, Armeno1s negotiators may have arguments in
the other direction.

Finally, even if there are delays in settlement, the low price of
Armeno's shares is not likely to be seriously eroded as long as the
case remains alive.  And Armeno1s aggressive legal actions  will be
continued in the event there are delays in reaching  a settlement. The
risk-reward ratio is very high. Those with speculative   money  will
have difficulty finding  a  similarly leveraged opportunity.
Contact :  1-800-665-3119.  Web site: www.agarmeno.com.

Ed Fishbaine

This corporate outline has been prepared solely  from public documents
and news releases. The information in  this report is reliable to the
extent that its sources are reliable but  TECHNICAL RESEARCH REPORTS
INC. does not guarantee the  accuracy or completeness of the
information in these sources.  Ag Armeno Mines & Minerals Inc.  has
paid a fee  to TECHNICAL RESEARCH REPORTS INC. for the purpose of
publication and dissemination of corporate information to the
investment public.  TECHNICAL RESEARCH REPORTS INC.  holds a position
in the shares of this company.   This report is for information
purposes and does not constitute a solicitation to purchase shares in
the company. TECHNICAL RESEARCH REPORTS INC.  does not solicit nor
does it accept any fees from any source other than  sponsors of the
publications it issues.

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