NEVADA AND THE WESTERN STATES — Twin Gold revises lease at Atlanta project in Idaho

Twin Gold Resources (TWG-T) has renegotiated the terms of its lease on the properties comprising its Atlanta gold project near Boise, Idaho.

Operator Twin Gold holds an 80% interest in Atlanta, with Quest International Resources (QIX-T) holding the remainder. On Dec. 31, 1997, Quest informed Twin Gold that it would no longer participate in its contractual share of property costs.

During the new lease’s 10-year term, Twin Gold’s wholly owned subsidiary, Atlanta Gold, will have an option to buy all of privately held Monarch Greenback’s Atlanta mining claims, including Butler Ranch, for US$2 million.

Should the purchase option be exercised, the existing US$150,000 annual lease payment and 5% net smelter return royalty to Monarch Greenback will be replaced with a 0.5% net smelter return royalty. Should the gold price rise above US$365 per oz., the royalty will increase by 0.01% for each US$1 increase in the gold price, to a maximum of 3.5%.

Upon signing the new lease/option agreement, Twin Gold will pay Monarch Greenback US$100,000.

Twin Gold, as part of a new alliance with consulting firm Behre Dolbear, is currently completing a final feasibility study and environmental impact statement on the Atlanta project. Future activities will include exploration drilling to increase and upgrade reserves, as well as metallurgical sampling and testing. Subject to the closing of various financings, Twin Gold plans to spend about US$6 million before the end of 1999 on development of the property.

Resources at Atlanta stand at 22.1 million tons grading 0.06 oz. gold per ton for 1.37 million contained ounces gold. While the deposit does contain refractory sulphide mineralization, Twin Gold is counting on a combination of gravity, flotation and bacterial-oxidation methods to sufficiently boost recovery rates.

In other news, Twin Gold reports that it has received approval from the Indonesian government for the merger of its key properties, Layuh and Saran, and that it is considering acquiring a controlling interest in a gold producing company in the Philippines.