March 12, 1998

Press Release

MMRL Announces 1997 Results

Morrison Middlefield Resources Limited ("MMRL") is pleased to announce its results for the fiscal year ended 1997. The year was highlighted by a record cash flow of $39.7 million, an increase of 14% over the year previous. Earnings remained strong in 1997 reaching $10.8 million. Capital spending for the year was $67.8 million which was $11 million less than 1996. However, for the first time in the Company's history it did not make a major acquisition during the year. A far greater portion of capital expenditures in 1997 was spent on conventional exploration and development activities. Total reserves increased by 64% to 45 million barrels of oil equivalent. The Company's finding and development costs for the year were $5.22 per barrel of oil equivalent on a proven and half probable basis.

The comparative financial and operating results for the three and twelve month periods ending December 31, 1997 and 1996 are summarized in the attached tables.

Normal Course Issuer Bid

MMRL intends to make a normal course issuer bid (the "Bid") for its common shares through the facilities of The Toronto Stock Exchange. This Bid is subject to regulatory approval. If regulatory approval is obtained, MMRL may purchase, from time to time, as it considers advisable, up to 980,000 of its issued and outstanding common shares (representing approximately 5% of its 19,612,562 common shares outstanding on March 11, 1998) in the open market through the facilities of The Toronto Stock Exchange. The price which MMRL will pay for any securities purchased will be the prevailing market price of such securities on The Toronto Stock Exchange at the time of such purchase. MMRL will cancel all common shares purchased pursuant to the Bid.

The Bid will terminate on March 11, 1999 or such earlier time as the Bid is completed or terminated at the option of MMRL.

The Company believes that the current and recent market price of its common shares does not reflect its underlying value. The purchase of common shares may represent an attractive and appropriate use of funds in light of potential benefits to remaining shareholders. Moreover, normal course purchases made by MMRL affords an increased degree of liquidity to those shareholders who wish to dispose of their shares.

Dividend

MMRL has declared a quarterly dividend of $0.05 per share payable on March 31, 1998 to the common shareholders of record at the close of business on March 24, 1998.

The common shares of the company are listed on the Toronto Stock Exchange under the symbol MM.

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