B.Y.G. Reaches Profitable Level of Production in December; Achieves Operating Costs of US$169 per oz Gold.

WHITEHORSE, YUKON--(BUSINESS WIRE)--Jan. 16, 1997-- B.Y.G.(TSE;ASE BYG ) B.Y.G. Natural Resources Inc. today reported that its newly commissioned production facility at Mt. Nansen, Yukon, generated an operating profit of more than $700,000 in its first full month of production and achieved operating costs of US$169 per oz.

In a remarkably smooth start-up for a mill which had been mothballed for 20 years, the Company produced 2,525 oz of gold and 12,900 oz of silver during December, 1996 and achieved excellent profitability despite prudent limitation of ore throughput of about 50 percent of capacity during the first weeks of operation.

J. Malcolm Slack, President, said that throughput has increased substantially through the first half of January and that the Company now expects to reach its short term goal of 700 tonnes per day before the end of the quarter. What has been particularly meaningful, Mr. Slack said, is that both ore grades and recoveries have been significantly better than plan. The mill processed 10,615 tonnes (342 tonnes per day) grading 0.287 oz of gold equivalent , a grade 10 percent better than plan. Gold recovery was 93.5 percent, 4 percent better than plan. Through the first 15 days of January the production rate has been 470 tonnes per day and the head grade has averaged 0.29 ounces equivalent gold per tonne.

As a results of the combination of higher than expected grades, recoveries, and production volumes, the Company now expects to exceed the initially planned production of 50,000 oz for the calendar year 1997 and also operating profit should be higher than previously expected.

Among other highly positive factors, the clearance of overburden at the open pit revealed a much larger, enriched cap over the orebody than anticipated. Mining widths have exceeded 100 feet and are expected to extend to sufficient depth to justify mill modifications and expansions to achieve even higher levels of gold production than planned originally for 1997.

This enriched zone is comprised of extremely sticky and fine material which has required feeding the crushing and grinding circuits directly without any storage in the fine and coarse ore bins. While this leaves the mill vulnerable to breakdowns, the operating crews have learned to handle this material and colder weather has significantly alleviated the problem. The Company's metallurgists have initiated a program to install a semi-autogenous grinding (SAG) mill to resolve the sticky ore problem.

This will permit an expansion which will result in a separate feed system for the oxide ores now being processed by the existing conventional crushing plant while simultaneously facilitating the treatment of sulphide ores to optimize the benefits from the dual feed system concept. The Company has accelerated the development and delineation of further oxide deposits. Depending on the sulphide/oxide ore ratio, the plant will be able to treat 1400 to 2000 tonnes of ore per day. The new installations are expected to be completed by mid-year.

B.Y.G. Natural Resources Inc. has a 100 percent interest in the Mt. Nansen mine and milling complex in the Yukon, as well as direct and indirect interest in exploration projects associated with the Mt. Nansen Trend. B.Y.G. owns controlling interest in a subsidiary, Trumpeter Yukon Gold Inc., which is an exploration company whose principal mandate is to finance the exploration and development of the properties of Omni Resources Inc. (VSE: ORI). Trumpeter also shares ownership in the Tawa and Klaza properties on the Nansen trend, and has 100 percent ownership of the Arctic Mine. Shares of B.Y.G. trade on the Toronto and Alberta Stock Exchanges under the symbol BYG; U.S. S.E.C. Exemption: 12g3-2(b) no. 82-2038. Shares of Trumpeter trade on the Alberta Stock Exchange, under the symbol TYG.

CONTACT: B.Y.G. Natural Resources Inc.

J. Malcolm Slack, 519/ 942-3181

[e-mail]

http://www.juniormine.on.ca/~pslack/

or

Whitehorse Office, 403/ 668-8060

[e-mail]

http://www.juniormine.on.ca/~pslack/

or

Hume, Kieran Inc.

Cathy Hume, 416/ 868-1079

[e-mail]

http://www.juniormine.on.ca/~pslack/

or

Hume, Kieran Inc.

Jon W. Kieran, 416/ 868-1079

[e-mail]

http://www.juniormine.on.ca/~pslack/