Alta Gold Co. Begins Construction at Griffon.

HENDERSON, Nev.--(BUSINESS WIRE)--July 16, 1997--Alta Gold Co. (Nasdaq/NM:ALTA) announced that, effective as of Wednesday, Alta has received all of the permits necessary to put the Griffon gold mine into production and has commenced site development and construction at Griffon.

The Griffon gold mine is located in White Pine County, Nev., 46 miles southwest of the company's eastern Nevada operational headquarters in Ely, Nev. The property contains two presently identified near-surface ore bodies, each of which is open to expansion in three directions.

As of Dec. 31, 1996, Griffon contained more than 68,000 ounces of minable gold reserves, as verified by Pincock Allen & Holt, an independent mining-engineering firm.

Robert N. Pratt, president and chief executive officer of Alta Gold, stated: ``Gold production at Griffon is scheduled to begin in January 1998 at a rate of 35,000 oz/year and at a cash cost of less than $200/oz. During the construction phase, we also plan to drill multiple targets which are adjacent to both of the presently known ore bodies.

``Any additional gold reserves discovered will not only increase future revenue but are also expected to further reduce our already- low per-ounce cash cost of production.''

Pratt further noted that the recent decrease in the price of gold is not expected to adversely impact on the profitability of the company's operations during the next 18 months because of hedges that the company has in place.

Pratt stated: ``Through the purchase of put options, we are guaranteed to receive a minimum of $335/oz for nearly all of the gold we are scheduled to produce during the next 18 months -- 21,000 ounces for the remainder of 1997 and 84,000 ounces for 1998. Although we don't like the current price of gold, we aren't overly concerned about it -- thanks to the price protection we have in place.''

The company is engaged in the exploration, development, mining and production of gold on properties in Nevada. The company also has three base-metals properties in the western United States that are in various stages of development. -0-

This news release contains statements that may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as management's expectations regarding the planned dates for commencement of gold production at the company's mining properties and the scope of anticipated drilling programs. Such forward-looking statements are inherently uncertain, and the actual results may differ from management's expectations. Further information on potential factors that could affect the financial condition and results of operations of the company are included in the filings of the company with the Securities and Exchange Commission, including, but not limited to, the company's annual report on Form 10-K for the fiscal year ended Dec. 31, 1996.

CONTACT: Alta Gold Co., Henderson

Margo Bergeson, 702/433-8525