Hanover Gold acquires Tabor claims; reduces rental and royalty obligations

Business Wire, April 4, 1996

COEUR D' ALENE, Idaho--(BUSINESS WIRE)--April 4, 1996--Hanover Gold Co. Inc. (NASDAQ Symbol "HVGO") announced today that it has entered into an agreement with Tabor Resources Corp. to acquire 10 patented and 120 unpatented mining claims, and one state land lease, covering properties located in the Alder Gulch area of the Virginia City Mining District in southwestern Montana.

The claims are contiguous to other claims and leases owned or controlled by Hanover and its affiliates and significantly increases its land position in the area and the potential for significant additional discoveries. Work completed on the Tabor property indicates a potential gold resource in excess of 250,000 ounces of gold.

Hanover will issue Tabor 400,000 shares of common stock subject to an upward adjustment based on the company's market price for its shares during a given period of time. In addition Hanover has granted three-year options for 300,000 shares exercisable at $2.00 per share. The shares and options will be registered with the Securities and Exchange Commission.

Hanover also announced today that it and its Group S Limited affiliate have entered into an agreement with Roy Moen and related interests amending the terms of a 1991 lease and option agreement covering 216 mining claims in the Alder Gulch area. In exchange for 250,000 shares of common stock and three year options to purchase 200,000 shares at $2.00 per share (with certain registration rights), Moen has agreed to reduce rental payments by $3,000,000 and to reduce his 5 percent NSR to 2.5 percent. In addition Moen will receive title to mill facilities owned by an affiliate of the company and will be relieved of approximately $90,000 of debt.

These transactions taken in conjunction with the Easton-Pacific transaction (in contemplation of merging Easton-Pacific into Hanover) and the anticipated merger of several of its affiliates, have allowed Hanover to substantially meet its objective of consolidating the ownership of approximately 15,000 acres of mining claims and interest in the Alder Gulch area.

Hanover is having discussions with several North American mining companies in contemplation of putting together in joint venture or other arrangement to explore and develop the Alder Gulch area.

For a copy of Hanover's annual report on Form 10-K for the year ended Dec. 31, 1995, contact Hanover at 208/664-4653

CONTACT: Hanover Gold Co., Coeur d'Alene

James A. Fish, 509/928-3333