VANCOUVER, May 21 /CNW-PRN/ - Northern Orion Explorations Ltd. NNO - TSE, VSE Northern Orion Explorations Ltd. (the ``Company'') announces its financial results for the three months ended March 31, 1999. The Company reports a loss of $1,699,000 or $0.02 per share compared to a loss of $868,000 or $0.01 per share in the quarter ended March 31, 1998. The weighted average number of common shares outstanding for the period was 74,006,780. During the quarter, the Mantua gold leach facility produced 6,043 ounces of gold (Northern Orion's share 3,021 ounces). Cash operating costs were US$300 per ounce. The realized gold selling price on Northern Orion's 50% share of the quarters gold production from Mantua was US$327 per ounce due the positive results of gold hedging operations by Northern Orion. Cash costs were higher than budgeted due to water shortages experienced at the mine. Water shortages were the result of extended drought conditions and reduced the Company's ability to leach gold from the pads. Weather conditions returned to normal during May 1999 and irrigation of the leach pads returned to normal levels. As a result of the higher operating costs at the Mantua project, Northern Orion was unable to make the principal and interest payments required by its project financing and therefore Miramar paid $3.0 to Northern Orion's bank under its guarantee of the project financing. The Mantua project is held in a 50-50 joint venture with Geominera SA, a Cuban state owned company. The board of Northern Orion has initiated a strategic review process to evaluate alternatives for the optimal medium to long term future for the Company given continued depressed copper prices and poor equity markets for junior exploration companies. Results of the strategic review will be reported as appropriate. During the quarter, the Company continued to reduce staffing levels and substantially reduced exploration expenditures, focussing expenditures on the Company's core assets such as Agua Rica and Mantua. Northern Orion Explorations Ltd. is a mineral exploration and development company focussing on the substantial and largely untapped mining opportunities in Latin America. Northern Orion's common shares are listed for trading on the Toronto and Vancouver Stock Exchanges under the symbol NNO. No Stock Exchange has approved or disapproved the information contained herein. SOURCE Northern Orion Explorations Ltd. -0- 05/21/1999 /Contact: Anthony P. Walsh, Interim President & CEO, VP Finance & C.F.O. (604) 980-0573, fax (604) 980-0731, info(at)miramarmining.com/ (NNO. MAE. MAENF) CO: Northern Orion Explorations Ltd. ST: British Columbia IN: MNG SU: ERN -30-  