Hanover Gold acquires additional claim interests in Alder Gulch/Virginia City Mining District of Montana

Business Wire, Feb 20, 1996

ROSLYN, N.Y.--(BUSINESS WIRE)--Feb. 20, 1996--Hanover Gold Company, Inc. (NASDAQ: "HVGO") announced today that the Company has acquired a remaining 20 percent interest in seven patented (deeded) and one unpatented precious metals mining claims, thereby owning 100 percent interest in these claims as part of the Company's large land holdings in the Alder Gulch/Virginia City Mining District in Madison County, Montana.

Hanover Gold also acquired the mining rights to four patented placer claims, ownership of the placer gold which may exist on 34 patented claims known as the Kearsarge Group of Claims, and retired a 0.5 percent Gross Overriding Royalty on all future production proceeds derived from the 34 claims.

Fred R. Schmid, Hanover Gold's president, noted that, "These latest acquisitions further enhance and continue the Company's goal toward consolidating the Virginia City Mining District under single ownership to facilitate additional exploration and possible bulk mining of the known gold deposits within the area."

Based upon Hanover Gold's own analyses and the previous exploration work performed by Kennecott Exploration Company, its former joint-venture partner, a multi-million ounce gold deposit is indicated on Hanover's property in the Virginia City Mining District. Hanover has recently accelerated its efforts to unify the ownership of various mining claims and interests in the District, which was made possible by the sale of common stock to N.A. Degerstrom, Inc., and a group of private investors. Neal Degerstrom, who is a member of the Company's Board of Directors, is also president of N.A. Degerstrom, Inc., a major open-pit mining and heavy construction contracting firm in business since 1904.

CONTACT: Hanover Gold Co. Inc., Roslyn

Fred R. Schmid, 516/742-1202