Atna Resources and US Cobalt To Develop Madison Cobalt Mine.

Business Editors

VANCOUVER, B.C.--(BUSINESS WIRE)--August 8, 2000

Atna Resources Ltd. (TSE:ATN.) and U. S. Cobalt Inc. (CDNX:USC.) are pleased to announce the signing of a Letter of Intent to create a 50:50 joint venture for the Madison Cobalt Mine located 100 miles south of St. Louis, Missouri. Atna's participation will allow the aggressive advancement of the project through completion of a feasibility study and environmental permitting.

The Madison Mine is a cobalt-nickel-copper property located on 1,800 acres of private property in the historic Missouri Lead Belt. The deposit contains an indicated resource of 5.6 million tons grading 0.27% cobalt, 0.43% nickel, and 0.50% copper at a 0.05% cobalt cut-off. During the late 1970s and early l980s feasibility level drilling and metallurgical test work were completed on the property and a process flow sheet was developed and tested. The ore zones are shallow, flat lying Mississippi Valley Type deposits that are amenable to conventional room and pillar mining methods.

U S Cobalt has the right to purchase a 100% interest in the property until March 31, 2002. It has conducted a drilling program and completed a scoping study that examined a production level of 2 million pounds of cobalt and 3.1 million pounds of nickel per year over a 12 year mine life through exploitation of the higher grade zones estimated to contain an indicated and inferred resource of 2.6 million tons grading 0.54 % Co., 0.82% Ni, and 0.92% Cu. Potential exists for the discovery of additional deposits on the property.

Under the terms of the Letter of Intent Atna may earn a direct 50% interest in the project and acquire an equity position in U.S. Cobalt by:

1) Spending C$3,250,000 on a work program during the next 18 months and by investing C$250,000 in U. S. Cobalt in a private placement of units made up of one share priced at C$0.80 and one warrant that is exercisable at C$0.90 per share within two years following the date of closing to earn a 45% interest.

2) Atna may purchase an additional 5% interest in the project after completion of the C$3,250,000 work program with a cash payment of C$500,000 and a second private placement of C$500,000 made up of one share and one purchase warrant which will be priced according to CDNX rules subject to a minimum price.

3) A management committee consisting of two members from each company will direct the work program.

4) Upon completion of the earn-in, a detailed joint venture agreement will be executed.

5) The Parties have a period of 20 days to complete a due diligence program. A finders fee will be paid by U.S. Cobalt subject to CDNX approval.

The planned work program is intended to advance the project to feasibility and includes 16,000 ft. of drilling, geological and mine modeling, metallurgical test work, cost estimation, marketing studies, and environmental evaluation. Environmental baseline data collection will begin to provide supporting information for project permitting through the State of Missouri.

Cobalt is used in portable rechargeable batteries including those in new class of electric and hybrid automobiles, superalloys, chemical catalysts, cemented carbides and many other high tech and industrial applications. The use of cobalt has been growing significantly over the last several years.

"Atna has an excellent management team with exploration, development, and mine operating experience. We look forward to working with them to make the Madison Cobalt Mine an important domestic producer for the largest cobalt consuming country in the world, " said Doug Glaspey, President of U.S. Cobalt.

"We are very excited to participate in an advanced project that is focused on strategic metals and we plan on moving toward a production decision in a very short time," said David Watkins, President and Chief Executive Officer of Vancouver-based Atna.

Atna is evaluating and negotiating on a number of exploration and feasibility stage projects. Atna's goal is to become a mid-cap mining company, increasing equity for shareholders with cash flow, new projects, and sustainable exploration with the potential for explosive growth.

US Cobalt is a Colorado based exploration and development company. Its primary focus is on the Madison Cobalt Mine.