Argentina Gold Rejects Barrick's Offer to Purchase All of the Company's Shares at Cdn$5.50 Per Share.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Dec. 8, 1998-- Argentina Gold Corp. (VSE:ARP) (the "Company") announced today that it was advised by Barrick Gold Corporation ("Barrick") that Barrick intends to make a hostile take-over bid for all of the outstanding common shares of the Company at a price of CDN$4.00 per share.

Representatives of Barrick and its financial and legal advisors attended at the offices of the Company in Vancouver and advised that Barrick intended to make a hostile take-over bid for the Company unless definitive agreements were entered into by the Company and certain of its principal shareholders to support an offer to be made by Barrick at a price to be agreed upon. To facilitate the negotiation process, the parties entered into an agreement which provided for exclusive negotiations and confidentiality and which expired at 5:00 p.m. (Vancouver time) on Tuesday, Dec. 8, 1998.

Negotiations took place throughout the day which did not result in the parties reaching an agreement. The negotiations concluded with Barrick stating that it would make an offer to purchase all of the Company's shares at a price of CDN$5.50 per share in cash if the Company and certain of its principal shareholders entered into support agreements to be followed by lock-up agreements.

Barrick's offer was rejected. Management expects Barrick to announce its hostile take-over bid shortly.

Management will continue to have discussions with other interested parties and is committed to maximizing shareholder value. The drilling program on the Company's Veladero's Project continues and the Company expects to be in a position to release further drill results shortly.

ON BEHALF OF THE BOARD

J. Patricio Jones, President

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