Alanco Announces Sale of Principal Mining Property.

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Sept. 16, 1999--

Alanco Environmental Resources Corp. (NASDAQ:ALAN) Thursday announced the sale of its principal mining property, the C.O.D. mine located near Kingman, Ariz., to Gold & Minerals Inc. (G&M) for $4.5 million of G&M Series A, 10% Cumulative, Convertible Preferred Stock.

G&M, a Nevada corporation founded in 1974, is an integrated mining company engaged in the exploration, development and mining of precious metals. In 1994, new owners and management redirected the company's activities, focusing upon commercial development of their highly promising El Capitan mining property located in Lincoln County, N.M.

Gold & Minerals Chairman, Charles C. Mottley, stated, "Over $5,000,000 has been invested in El Capitan to date and the mine is now fully operational, producing refined ores with high yields of gold, silver and platinum group metals for sale to final processors.

"We anticipate sales revenue in excess of $25 million in our first full year of production, with substantial profits due to our unique combination of high mineral yields and relatively low mining and processing costs."

Gold & Minerals Inc. is presently filing with the SEC and NASD to reactivate its public market status, and expects OTC Bulletin Board trading to commence in October, followed by a NASDAQ Small Cap listing.

Alanco Chairman and CEO, Robert R. Kauffman, stated, "We are pleased to have exchanged this significant and nonproductive mining asset for a substantial equity investment in Gold & Minerals, Inc. with a high probability of excellent return."

The G&M Series "A" Preferred Stock received by Alanco for the C.O.D. mining property is convertible, after one year, into a variable number of shares of G&M common stock determined by dividing the face value of the Preferred Stock (plus accrued "paid-in-kind" dividends) by the share market price at time of conversion.

Although the face value of the Preferred Stock consideration received in this transaction is significantly higher than the current mining property book value of approximately $2.5 million, the company is deferring recognition of any potential gain until such time as there exists an active public market for G&M common stock.

Alanco Environmental Resources Corp. is an Arizona corporation headquartered in Scottsdale, primarily engaged in the environmental products business. Alanco is traded on the NASDAQ stock market under the symbol ALAN.

This press release contains statements that may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are inherently uncertain, and the actual results may differ from management's expectations.