Canyon Resources and U.S. Department of Interior, Bureau of Land Management complete land exchange in Montana

Business Wire, Jan 16, 1996

LEWISTOWN, Mont.--(BUSINESS WIRE)--Jan. 16, 1996--Canyon Resources Corp. (NASDAQ:CYNR), a Colorado-based mining company, and the U.S. Department of Interior, Bureau of Land Management (BLM), announced Tuesday the completion of a land exchange in the North Moccasin Mountains of Montana.

Canyon transferred two contiguous blocks of prime wildlife habitat to the BLM in exchange for several small parcels of land within the boundaries of the currently active Kendall Mine, near Lewistown, in Fergus County, Montana. Both parties benefit from this exchange because they are able to consolidate their land holdings.

The BLM received about 130 acres and Canyon received about 150 acres in the land exchange. In addition to the land exchange, Canyon will convey a much-needed public access road to BLM lands in the North Moccasin Mountains and will fund historical interpretive signs in the old Kendall town site.

The lands received by the BLM hold tremendous value for wildlife habitat and recreational use. The consolidated parcels are contiguous with other public lands. The BLM will manage the newly acquired lands for multiple use in the heart of the scenic North Moccasin range. In contrast, much of the land received by Canyon has been disturbed by mining activity at the Kendall Mine. It consists of small, irregular parcels surrounded by private land, with no access and little or no public value.

"Canyon is pleased to be able to help governmental agencies find cost-effective ways to enhance their missions, protect the environment, and serve the public trust. Exchanges such as this happen only when both sides benefit. The exchange will allow the Kendall Mine to continue its reclamation with a unified land position and specific post mining needs," said Richard H. De Voto, president.

Chuck Otto, Judith Resource Area Manager for the BLM stated: "The land consolidation will allow more efficient management and offers the public additional recreational opportunities. Although the land parcels themselves were small, the exchange improves access and enhances public values for a large block of public land."

Canyon produces gold and silver from the Kendall Mine in Montana and is currently constructing the Briggs gold mine in southeastern California. The company holds a joint venture interest in the 8.2 million-ounce McDonald gold deposit in Montana that is in the permitting stage. The company also produces and sells industrial mineral products from a diatomite mine/plant complex in Nevada.

CONTACT: Canyon Resources Corp., Golden

Conrad H. Parrish, 303/278-8464

or

Bureau of Land Management

Chuck Otto, 406/538-7461