Mill City Announces Regulatory Approval for Previously Announced Purchase

Business Wire, Sept 9, 1998

CALGARY, Alberta--(BUSINESS WIRE)--Sept. 9, 1998--Mill City(VSE:MIY.) (OTC Bulletin Board:MIYNF) MILL CITY INTERNATIONAL INC. (MIY-VSE)(MIYNF-OTC) ("Mill City") announces that it has obtained regulatory approval for that previously announced purchase by Mill City of 5,500,000 common shares of MacDonald Mines Exploration Ltd. ("MacDonald") from an existing shareholder.

To complete the purchase of these common shares of MacDonald, Mill City has issued 3,850,000 common shares and now owns approximately 19 percent of the issued and outstanding common shares of MacDonald.

Mill City also announces that on September 8, 1998 it entered into director and officer Stock Option Agreements for 770,000 common shares of the Company at an option price of $0.15 per common share, such price being calculated in accordance with the policies of the Vancouver Stock Exchange. These options are to be exercised on or before September 8, 2003.

In addition to the granting of these new options, options previously granted onMay 5, 1998 (totalling 1,170,000) have been cancelled with the concurrence of the optionees. Lastly, the Company has agreed to a re-pricing of previously granted options from $0.25 to $0.15 per common share.

The granting of these new options and re-pricing is subject to approval of the regulatory authorities.

The Vancouver Stock Exchange has neither approved nor disapproved the information contained herein.

    CONTACT:  Mill City International Inc.
               Larry D. Revitt, 403/640-0110
               403/640-4024  (FAX)
               or
               millcity@cadvision.com
               http://www.millcitygold.com