B.Y.G. 's Yukon gold play - Natural Resources

Money Digest, June, 1997

B.Y.G. Natural Resources Inc. represents an opportunity to participate in the re-development of a gold mining camp located in the Yukon Territory of Canada.

The properties are easily accessible and the oxide deposits are presently in production. The deeper sulphide deposits are currently being assessed and demonstrate that there is considerable potential to develop significant high grade reserves.

B.Y.G. is poised to become the dominant regional player with the construction of the Whitehorse Leaching Complex.

The project economics demonstrate that the operation can be in a positive position within a couple of months of start-up and generate C$7.5 million in the first 12 months. This equates to $0.13 per share in 1997 and an estimated $0.40 per share in 1998 after all royalty payments and debt servicing, assuming that 75 million shares will be outstanding by year end.

B.Y.G. has also announced that its first quarter of operations produced a profit of $2.5 million or $0.05 per share. Annualized, this translates into $0.20 per share, $0.01 higher than our projected $0.19 per share. At eight times earnings B.Y.G. shares should trade at $1.60 and at 15 times earnings they should trade at $3.00.

                              B.Y.G. Natural

                              Resources Inc.



Symbol:                                    BYG

Exchanges:                Toronto, Alberta, US

SEC exemption:              12G3-2(b) #82-2038

Shares issued:                    45.0 million

Fully diluted:                    51.0 million

Recent price:                            $1.10

Market cap:                      $56.1 million

12-19 Mon. target price:           $2.45-$3.00

Recommendation:                Buy for growth-

                            oriented investors

We believe that the shares of B.Y.G. are undervalued and anticipate that given the project economics the shares should trade at $3.00 in 12- to-18 months. Shares of B.Y.G. should appeal to aggressive investors seeking growth opportunities in the Canadian-based gold mining industry.

Adapted from a research report written by Bryan Wilson of C.M. Oliver. Phone (416) 363-6699.