Further to the Company's press release of August 31, 1998 announcing that the Company intended to raise up to $500,000 by way of a private placement of 2,000,000 units at $0.25 per unit, the Company announces that it has now placed 400,000 of the units for gross subscription proceeds of $100,000. The expiry date of the hold period for the 400,000 units will be four months from the date of final acceptance by the Vancouver Stock Exchange of this first tranche of units. The Company will be closing the private placement of 2,000,000 units in tranches as subscription amounts of at least $50,000 are received. The net proceeds from the private placement are being used to provide funds for corporate and administrative purposes. The Company will continue placing the units until they are subscribed in full or until November 29, 1998, whichever is the earlier.

Raymond A. Hrkac
President

For more information, visit our web site at www.gerle.com
Or contact: Susan de Stein, Corporate Relations at (604) 739-4331 or info@gerle.com

The Vancouver Stock Exchange has not reviewed and does accept responsibility for the adequacy or accuracy of this release.