Atlanta Gold Corporation Property Update.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Oct. 17, 1996-- Atlanta Gold Corp. (TSE:AAG.) holds various mining claims and leases covering some 2,678 acres near the town of Atlanta in Elmore County, Idaho 60 miles east-northeast of Boise, Idaho.

These mining claims and leases are referred to as the "Atlanta Property". A number of significant deposits have been identified on the property to date.

A 1989 feasibility study confirmed proven reserves near surface on the West and East Pit of 1,024,000 ounces of gold and 2,516,000 ounces of silver. The West Pit contains 303,800 ounces of gold in 6.2 million tons (0.049 ounces of gold per ton) and the East Pit contains 722,100 ounces of gold in 8.3 million tons (0.087 opt). (Underground, a resource of approximately 300,000 ounces of gold has been outlined from surface drilling).

Metallurgical testing by way of chemical oxidation conducted at Hazen Research confirmed that high gold recoveries, over 90%, could be achieved through a combination of flotation, ultra-fine grinding of the concentrate, and sodium hydroxide (caustic) oxidation followed by cyanide leaching.

Past testwork performed on Atlanta's ore and concentrate has demonstrated that using bacteria to oxidize the refractory sulfides containing gold results in gold extractions of 94-96%. Six gold operations world wide are now using this process and a major U.S. gold mining company has developed the heap leach method of bacterial oxidation for gold. Using bacteria in the heap leach process could greatly reduce capital and operating costs for a refractory deposit such as Atlanta's.

Under an Exploration Agreement with Quest International Resources Corp. (formerly Consolidated Ramrod Gold Corp.) Quest has spent approximately $3,200,000 to date and has to November 1998 to spend an additional $6,300,000.

Upon completion of those expenditures, Quest will have earned a 51% interest in the Atlanta Property and the property is expected to be placed in production. Quest is currently conducting a feasibility study on the "Atlanta Property".

Mutual Agreement To Cancel The Proposed Merger

The proposed merger with Quest International Resources (formerly Consolidated Ramrod Gold Corp.) will not be proceeding. Quest and Atlanta have released each other from any obligations arising out of the agreement.

Summary

The "Atlanta Property" in Idaho is a valuable "in the ground" gold and silver asset. Recent and continuing advances in bioleaching arc expected to significantly enhance its value.

While the "Atlanta Property" remains its core asset, an aggressive program embarked upon in Indonesia with the joint acquisition of seven mining properties marks a new phase for the company. Atlanta looks forward to the results that will be forthcoming from the current work program it has initiated on its Indonesian properties.

Atlanta Gold Corp.

(signed) Karl Rollke President

The Toronto Stock Exchange has neither approved nor disapproved of the contents of this press release.

CONTACT: Atlanta Gold Corp.

Karl Rollke, 604/669-0016