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Company Initiates Cruise Operation Between California And Mexico

International Basic Resources, Inc.'s subsidiary, Ensenada Cruiseport Village, S.A. de C.V., has entered into a memorandum of understanding with Piscadera Management Co. N.V. for the commencement of daily cruise ship service between San Diego and Ensenada, Baja California, Mexico.

Piscadera, a Netherlands Antilles company with hotel and gaming operations in Curacao, has concluded negotiations to charter its first cruise ship and expects to begin daily service between San Diego and Ensenada on August 1, 1996. The ship's activities will include gaming as well as food and beverage service.

Ensenada Cruiseport Village has received the approval of the Ensenada Port Authority for a conceptual master plan for a cruiseport village in Ensenada, designed to simultaneously accommodate four of the largest cruise ships. The daily cruise service is expected to generate at least 340 port calls per year at Cruiseport Ensenada.

Ensenada Cruiseport Village, S.A. de C.V. has agreed to enter into the five-year agreement with Piscadera Management Co., N.V for joint promotional activities for the daily service and passenger activities during Cruiseport Ensenada port calls, in addition to the daily cruise service.

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