Bass Capital Corp. Enters Into Letter of Intent with Pinnacle Resources.

CALGARY, ALBERTA--(BUSINESS WIRE)--June 27, 1997--Bass Capital (Alberta Stock Exchange:BSS.) BASS CAPITAL CORP. (ASE Symbol - "BSS") ("BASS"), a junior capital pool corporation announces that it has entered into a letter of intent with Pinnacle Resources (1996) Ltd. ("Pinnacle") on June 27, 1997 pursuant to which, in consideration of the issuance of up to 430,000 Common Shares of BASS and a 1.5 percent net smelter royalty, BASS would acquire the issued shares of a designated subsidiary or affiliate of Pinnacle, which would own the mineral properties known as the NOSE Property (14 claim totalling 36,150 acres) and the MALLEY EAST property (14 claim blocks totalling 36,150 acres). In addition, in consideration of the payment of $20,000 cash, the issuance of 250,000 Common Shares of BASS and a 2 percent net smelter royalty payable to a third party, BASS would acquire the Bathurst Inlet Property claims/minerals leases (5 claim blocks totalling 12,440 acres). All of these properties are located in the Northwest Territories. As well, in consideration of a finders fee payable to Pinnacle, Pinnacle would offer BASS the right of first refusal on additional properties identified by Pinnacle and BASS.

BASS intends the transactions to constitute its Major Transaction within the applicable policies of The Alberta Securities Commission and The Alberta Stock Exchange. At the closing of the Major Transaction, Pinnacle would purchase a total of 1,000,000 Escrowed Shares from Donald R. Planche and David H. Planche at a price of $0.075 per share for a total price of $75,000, the 500,000 directors options would be exercised in full at an exercise price of $0.10 per share, a majority of the Board of Directors of Bass would consist of nominees of Pinnacle, provided that Donald R. Planche would remain as a director and C. Frank Agar would be appointed as a director, additional stock options would be granted to the directors, officers, employees, and consultants at the discretion of the new Board of Directors at an exercise price as allowed by The Alberta Stock Exchange, and BASS would complete an offering of Common Shares in an amount to be determined.

The transaction is subject to the entering into of a formal agreement and meeting all regulatory requirements, including approval by a majority of the minority shareholders of BASS at a special meeting of shareholders to be called for that purpose. -0- The Alberta Stock Exchange neither approves or disapproves of the information contained herein.

CONTACT: Bass Capital Corp.

Mr. Donald Planche, 403/221-8850