Gamma Resources Ltd. — Regulatory Filings 1999

FORM 27

SECURITIES ACT

MATERIAL CHANGE REPORT UNDER SECTION 85 (1) OF THE ACT

NOTE: This form is intended as a guideline. A letter or other document may be used if the substantive requirements of this form are complied with.

NOTE: Every report required to be filed under Section 85(1) of the Act shall be sent to the Commission in an envelope addressed to the Commission and marked "Continuous Disclosure".

NOTE: WHERE THIS REPORT IS FILED ON A CONFIDENTIAL BASIS PUT AT THE BEGINNING OF THE REPORT IN BLOCK CAPITALS "CONFIDENTIAL - SECTION 85" AND EVERYTHING THAT IS REQUIRED TO BE FILED SHALL BE PLACED IN AN ENVELOPE ADDRESSED TO THE SECRETARY OF THE COMMISSION MARKED "CONFIDENTIAL".

Item 1 REPORTING ISSUER

Medallion Resources Ltd.

322 Water Street, 2nd Floor

Vancouver, B.C. V6B 1B6

Item 2 DATE OF MATERIAL CHANGE

January 6, 1999

Item 3 PRESS RELEASE

Pursuant to Section 85(1) of the Act a press release was issued on January 6, 1999 and distributed through the Vancouver Stockwatch, George Cross Newsletter and Market News. The press release was filed with the Vancouver Stock Exchange and the British Columbia Securities Commission via SEDAR on January 7, 1999.

Item 4 SUMMARY OF MATERIAL CHANGE

The Company has announced drill program to commence on Zoquite project, Mexico. Company has granted an employee stock option.

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Item 5 FULL DESCRIPTION OF MATERIAL CHANGE

Medallion Resources is pleased to report that the initial drill program on the Zoquite high grade silver project near Zacatecas, Mexico is to commence January 8, 1999. This program will test several very significant silver, gold and base metal anomalies associated with the eastern extension of the Cantera Vein, one of three major vein systems in the Zacatecas district.

More than one billion ounces of silver and four million ounces of gold have been produced from the Zacatecas camp. The Cantera Vein has produced about one-third of this total from several mines to the west of the Medallion property.

This initial 1500-meter drill program is designed to test the vein at depth within the area most favorable for metal deposition. No previous exploration ever tested the seven-kilometer extension of the Cantera Vein exposed on the Medallion property at the depths planned in this program, yet intercepts as high as 84 g/t silver and 0.5 g/t gold over 5.5 meters were encountered in shallow drilling. Typical ore grades in the district exceeded 300 g/t silver with significant gold and base metals.

This initial program is scheduled to be completed by the end of January. Results will be announced as soon as they can be compiled and verified. If strong ore-grade intercepts are achieved, the company plans to extend the initial program with offsets of the most encouraging intercepts.

The Company has granted a stock option for 5,000 common shares of the Company to a new employee at a price of $0.73 for a period of 2 years.

Item 6 RELIANCE OF SECTION 85(2) OF THE ACT

N/A

Item 7 OMITTED INFORMATION

There has been no information omitted.

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Item 8 SENIOR OFFICERS

To obtain further information, contact Robert Blakestad, President or Janet Horbulyk, Corporate Secretary at (604) 681-9558.

Item 9 STATEMENT OF SENIOR OFFICER

The foregoing accurately discloses the material change referred to herein.

DATED at Vancouver , this 7th day of January , 1999.

Signature: “Janet Horbulyk”

Name: JANET HORBULYK

Title: CORPORATE SECRETARY

(must be a senior officer)

It is an offence for a person to make a statement in a document required to be filed or furnished under the Act or the Regulation that at the time and in the light of the circumstances under which it is made, is a misrepresentation.

Medallion\Form27