July 9, 1997 Company Press Release Amalgamated Contracts to Improve Oil Detection Technology and Enters into First International Service Agreement Amalgamated Explorations Inc. (OTC/BB:AXPL) has entered into a research and development program with Emdyne Inc. and Multitech Consulting, both of Houston. Emdyne and Multitech will design a new microprocessor for MSP Technologies (Amalgamated Explorations' wholly owned subsidiary), to be used in electrotelluric® survey equipment. The new microprocessor will allow the survey operator to control the filter and gain functions while testing. The goal is to achieve an increased signal-to-noise ratio, thereby improving the survey's accuracy. Upgraded chips will be incorporated into Amalgamated's existing electrotelluric® survey units. The project is estimated to require six months for completion. MSP Technologies, a wholly owned subsidiary of Amalgamated Explorations, wishes to announce its first international service contract. Electrotelluric® surveys are underway in Australia and are expected to continue through August 1997. Amalgamated Explorations' patent-pending electrotelluric® survey is the latest in oil and gas exploration. The survey samples the natural low-frequency electromagnetic waves as they pass through the earth. The various minerals that compose the earth's crust may act as electromagnetic conductors or insulators. Oil and natural gas, being electromagnetic insulators, produce anomalies in the radio waves. The resulting signal can be amplified and recorded on an analog printout. An absence of signal generally indicates a dry hole, while a strong signal shows a presence of hydrocarbons. Amalgamated can then utilize a depth-to-frequency curve to determine the approximate depth of the hydrocarbon deposits. The electrotelluric® survey scans to depths of 17,000 feet, can be completed in just five minutes and is totally noninvasive. The electrotelluric® survey can be carried by one man, particularly advantageous in difficult terrain. When used in conjunction with 3-D seismic surveys, the electrotelluric® survey can help preserve the environment by avoiding the drilling of dry holes. To date, the electrotelluric® survey has determined the location of hydrocarbons in 20 wells prior to drilling. The survey can determine the depth of the hydrocarbon formation within 5 percent. Amalgamated is confident an absence of signal indicates a dry hole. Due to the sensitivity of the electrotelluric® equipment, absolute accuracy cannot be guaranteed. Atmospheric conditions, solar radiations, power lines and random radio frequencies may have an adverse effect on survey results. The electrotelluric® survey measures a randomly occurring electromagnetic wave. Geophysical surveys that rely on randomly occurring fields must be statistically analyzed for anomalies within the geophysical data. Amalgamated believes such recurring anomalies will generally indicate a commercially viable quantity of hydrocarbons. Amalgamated Explorations, Inc. - 1-303-629-5115