Battle Mountain Gold Posts Losses On Low Gold Prices But Continues Strong Operating Performance.

HOUSTON--(BUSINESS WIRE)--April 30, 1999--

Battle Mountain Gold Co. (NYSE:BMG)(ToSE:BMC) Friday reported a first-quarter consolidated net loss of $13.8 million, or 6 cents per share, including a noncash write-down of the company's investment in Niugini Mining Ltd. (NML) of $10.4 million, or 5 cents per share.

This write-down is due to a 16 percent drop in the market value of NML's interest in Lihir Gold Ltd. The first-quarter loss compares with a net loss of $3.5 million, or 2 cents per share, in the same period last year.

BMG President and Chief Executive Officer Ian D. Bayer said that first-quarter gold production of 176,000 ounces and cash costs of $175 per ounce are as planned and position the company to achieve its production and cash-cost forecasts for the year.

Bayer noted that gold production was lower than in the first quarter of 1998 because of the deconsolidation of NML and previously forecast lower production at the Golden Giant and Kori Kollo mines.

The average realized gold price declined $21 per ounce from the first quarter of last year to $286. Lower gold prices and production, coupled with an increase in working capital, largely resulting from an increase in tax payments, reduced cash flow from operations to $2.1 million for the quarter.

The company's cash position was $103 million at the end of the quarter. The decline from year end resulted from debt repayments of $26.5 million, a liquidating dividend of $11 million to the Crown Butte minority shareholders and capital expenditures of $9.3 million.

At the company's annual meeting Friday, Bayer noted: "In spite of the difficult gold-price environment, BMG remains a solid gold company with excellent upside potential.

-- BMG has quality, low-cost operations with a solid future. -- There are excellent opportunities to add value at BMG's operating

properties and projects. -- BMG has people capable of managing its business for long-term

value, despite current gold prices. -- And it has more good exploration and development opportunities in

hand right now than I have ever seen."

Annual Meeting Summary -- Operations

Senior Vice President -- Operations John Keyes told the meeting that for 1999, BMG expects to maintain its position as one of the low-cost leaders in the industry. Cash operating costs are targeted to average less than $175 per ounce, with expected production of approximately 725,000 attributable ounces of gold.

In Canada, the Golden Giant mine, which still has more than 2 million ounces of reserves, will remain a world-class asset with profitable production at least through 2005. To help insure this, about 25 percent of the company's total projected capital expenditures this year will be for development work on Block 5 at Golden Giant.

The 88 percent owned Kori Kollo mine in Bolivia continued to have good cost performance. Three factors there are expected to provide the means to extend the life of the Kori Kollo complex well past the year 2002.

These are work on the bio-oxidation project, which continues to generate positive results; the current infill drilling program in the Kori Kollo pit; and excellent exploration potential in the Kori Kollo area.

Work is moving ahead on schedule on the year-long, 200,000-ton pilot-plant test of the near-by Llallagua bio-oxidation heap leach project, which is designed to establish the economics of a commercial operation. Additionally, detail drilling completed on a small area of the Llallagua resource to define material for the bio-oxidation test was successful in doubling the resource for that area.

These results provide confidence in the ability to further expand the 35-million-ton resource base at Llallagua with additional drilling. BMG's objective is to obtain enough information from the pilot test by the fourth quarter this year to make a decision to proceed with detailed drilling of the deposit and to reach a production decision late in 2000.

This program, if successful, will enable BMG to unlock significant known resources in an area with well developed infrastructure as well as having implications for deposits outside of Bolivia.

The company has also begun looking at other targets in the immediate vicinity of the mine, as well as beneath the bottom of the Kori Kollo pit. Though it is still early, initial drilling has been encouraging.

The 84.65 percent owned Holloway mine continues to perform well. Cash operating costs during the first quarter were $206 per ounce, compared with $253 in the same period last year.

BMG's 50 percent joint-venture interest in the Pajingo complex in Queensland, Australia, is often overlooked. During the first quarter, cash production costs were $116 per ounce at this long-term, low-cost asset, where total production at the Vera/Nancy mine there is targeted to double by the year 2000, to a minimum of approximately 200,000 ounces per year.

BMG's share of the capital cost for the expansion is only expected to be approximately $15 million, about half of which will be spent this year.

Annual Meeting Summary -- Development

At the Phoenix development project at the Battle Mountain Complex in Nevada, work is moving forward on a number of different fronts. Great strides have been made at Phoenix over the past few years, and last year alone the company added approximately 1 million ounces of new higher quality reserves.

The goal for 1999 is to do the same, with approximately 150,000 feet of drilling planned. Additional work is expected to continue into the year 2000. Results from recent work have enabled BMG to target cash operating costs in the $185-$190 per ounce range; average annual gold production of approximately 300,000 ounces over at least a 12 year period; and capital expenditures in the $165 million range.

A plant in the range of 20,000 tons per day is being targeted. The strip ratio will be less than 4 to 1, and overall grade is expected to average .045 to .05 ounces per ton.

Results of a pilot plant test confirm that the elimination of the carbon-in-leach circuit from the process will save on capital and operating costs with minimal recovery losses. The recovery rate for sulfide material is expected to be more than 80 percent.

More than 60 percent of the gold recovered is expected to come from a low-cost gravity concentration process and the other 20 percent from flotation.

Approximately 90 percent of the material to be processed is sulfide. The remaining oxide material will be treated at an adjacent heap leach facility. A revised feasibility study is expected in the fourth quarter of 1999, though drilling will continue through year end.

The company has submitted a revised plan of operations for the Phoenix project to the Bureau of Land Management. BMG's objective is to have the draft Environmental Impact Statement issued in the mid-1999 time frame and the Record of Decision approximately a year later. Assuming timely permitting and approvals, operations could begin by the end of 2001.

On March 26, Battle Mountain Gold was notified that the Plan of Operations for its Crown Jewel gold project had been denied and the Record of Decision vacated. This action by the Departments of the Interior and Agriculture was unprecedented and outrageous.

BMG intends to develop Crown Jewel, and it is pursuing the matter vigorously toward that end. The merits of the company's case are strong and BMG hopes to bring the matter to a quick and successful conclusion.

Annual Meeting Summary -- Exploration

Senior Vice President -- Exploration Ian Atkinson told the annual meeting that the company has excellent potential to grow its reserve and resource base over the next two to three years. Much of the work will involve headframe geology, where BMG has an excellent opportunity for extending the life of its quality asset base.

The company is also working in three greenfield exploration areas with potential to become new mining districts. To achieve the growth it is seeking, BMG will be investing $25 million in exploration in 1999.

BMG increased the Phoenix reserve base by 1 million ounces in 1998 to 3.5 million ounces, and has set the same 1 million ounce reserve growth target for 1999. The company has 10 drills active on the Phoenix property, and the goal is to complete 100,000 feet of drilling by mid year and an additional 50,000 feet in the third quarter.

The emphasis of this work is to ensure that BMG has sufficient drill information to enable it to convert known mineralization within the current pit outlines into reserves.

The target of 1 million ounces of growth in reserves at Phoenix is planned to come from two areas, the Phoenix/Fortitude area and the Greater Midas area.

In the Phoenix/Fortitude area, work this year is designed to increase the drill density in the area of the high-grade intercepts along the Virgin Fault in the highwall of the Fortitude pit and in the Middle Battle Formation in the bottom of the Fortitude pit. At the bottom of the Fortitude pit, drill intercepts from the 1998 program helped add 1 million ounces to the reserve base last year.

However, some of the better intercepts, which include: .290 ounces per ton (opt) over 42 ft; .290 opt over 20 ft; and .154 opt over 60 ft, were not included in the 1998 reserves because the reserve calculations are based on a minimum drill-hole spacing of 125 to 150 feet.

The current drilling will infill those areas that do not yet meet this standard, which is expected to allow BMG to bring the higher grade mineralization into the reserves, as well as helping to lower the overall strip ratio of the Phoenix pit.

To the south in the Greater Midas pit area, BMG was also successful in outlining mineralization at West Midas in 1998. The grades are good, with some of the better intercepts being .213 opt over 60 feet and .195 opt over 110 ft. However, the company did not complete sufficient drilling to bring the mineralization into the 1998 reserve base.

BMG expects that the additional drilling in progress will intersect more mineralization in the Battle Mountain formation, which would create sufficient added value to bring the West Midas mineralization into proven and probable reserves.

The results from the 76 holes assayed to date from the Mid Midas and West Midas areas have been excellent, as only 11 of the holes were barren. BMG is continuing to achieve the high success rate for drill holes that it experienced last year.

In addition, the company also has other exciting exploration prospects at the Battle Mountain Complex that could have a positive impact on the Phoenix project. Two of these are Copper Basin, which is only 7 miles away and connected by existing haul roads, and also Iron Canyon, which is immediately to the east of Phoenix.

At the Pajingo operation, in which BMG has a 50 percent joint- venture interest, exploration success is continuing. Development drilling there in 1998 increased Vera/Nancy proven and probable reserves to 1,853,000 tons @ 13.5 g/t Au, or approximately 805,000 ounces of contained gold.

The joint venture also added the Vera South mineralization to its resource base. The overall updated resource estimate now totals 4.2 million tons @ 14.2 g/t Au, or approximately 1.9 million ounces of contained gold.

During 1999, the joint venture will continue to place priority on the exploration of the potential down dip extension of Vera South and on selected structures in the Vera/Nancy vicinity. It has completed three priority drill holes at Vera South to follow up on the intercept of 32 g/t Au over 16.9m obtained last year.

The joint venture has received assays for two of the three holes which have returned intercepts of 4.9 g/t over 8m, 10.8 g/t over 11m and 4.1 g/t over 15.9m. These intersections significantly increase the potential at depth of Vera South, and BMG fully expects that it will continue to add to the resource base at Vera/Nancy in 1999.

At the Holloway mine, drilling to date on the Teddy Bear property, where BMG has a 100 percent interest, has initially outlined more than 400,000 ounces of additional mineralization within the alteration system that hosts the main Lightning Zone deposit.

This extensive alteration system remains open in all directions, and BMG currently has 2 drills active on surface and plans on conducting further underground drilling starting in May of this year.

At Kori Kollo, BMG completed an exploration hole beneath the Kori Kollo pit that intersected a previously unrecognized fault-controlled breccia unit that assayed 5.14 g/t over 24m. The company has since completed another five holes, all of which intersected this new breccia unit, three with significant assays of 2.24 g/t over 47.3m, 3.33 g/t over 30.4m, and 2.17 g/t over 47.3m, respectively.

The intercepts are 10m to 160m below the current planned pit bottom. The gold values have been consistently higher than the average grade of the Kori Kollo ore body, and each intercept contains a discrete higher-grade core.

The breccia unit is open at depth and also open along strike. BMG believes that these new results, together with the results of the infill drilling, offer an excellent opportunity to increase the reserve base and mine life of the Kori Kollo ore body.

Atkinson also focused on two greenfield projects -- El Cairo and Tres Cruces. The El Cairo project in Mexico is located approximately 75 miles north of Durango. BMG's area of focus to date has been a small portion in the center of the El Cairo property. The property itself is an extremely large land holding and covers an area of approximately 1,600 square miles, in which BMG holds a 100 percent interest.

Drill work on this relatively small section of the El Cairo property has identified a large-tonnage, low-grade, bulk-mineable and leachable gold resource called El Castillo, which contains 34 million tons of oxide material grading 0.81 g/t Au, or approximately 880,000 ounces of contained gold.

BMG's goal for 1999 is to expand the existing resource by drill-testing the limits of the El Castillo deposit and drilling the nearby high priority targets. Drilling began in early April with two drills.

The second greenfield project is Tres Cruces in Peru, where Battle Mountain Gold has acquired an option to purchase a 100 percent interest. The company started an aggressive exploration program in late 1998. With two drills active on the property, it has completed approximately 40 holes.

As the understanding of the geology and controls on mineralization continue to improve, new interpretations of the current drill results indicate that there may be higher grade, but fewer tons than originally indicated in the known zones of mineralization.

Results of note from new drilling during the first quarter include 1.9 g/t over 42m; 2.2 g/t over 108m; and 2.8 g/t over 59m. The increased knowledge of the geology and mineralization has opened up new areas for drill testing and enabled BMG to develop a more effective exploration program.

Plans for the second quarter include 100m stepout drilling to extend the known mineralization, and an aggressive exploration program to test an array of excellent geochemical and geophysical targets.

Annual Meeting Summary -- Outlook

In summary, Bayer reminded the attendees that BMG has: quality, low-cost operations with a solid future; excellent opportunities to add value at both its operating properties and its projects; is managing its business for long-term value, despite current gold prices; and has more good development and exploration opportunities in hand right now than ever.

BMG's Vision Statement 2005 says: "Battle Mountain Gold will be an international gold mining company renowned for the responsible and professional manner in which it discovers, acquires, develops, operates and reclaims mines. We will have set a new standard of sustained growth and superior shareholder returns. Reserves will have doubled from 1998."

Bayer continued: "The company's goals are achievable, but we must recognize that in current times achieving those goals will require prudent management and decision making. Despite the current environment, BMG must also recognize that the decisions it makes today lay the groundwork for the future.

"Given the time it takes to build and develop mines, the results of the decisions made now often are not seen for a number of years. It is important that the company be proactive, not reactive, and that it view challenges as opportunities, not obstacles. By staying committed and focused, BMG will create and expand shareholder value," he concluded.

The U.S. Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. Operating, exploration and financial data, and other statements in this document, are based on information that the company believes reasonable but involve significant uncertainties as to future gold prices, costs, ore grades, mining and processing conditions, and regulatory and permitting matters. Actual results and timetables could vary significantly from the estimates presented. Also refer to the cautionary statement contained in the company's Form 10-K and 10-Q for the most recent reporting periods. -0-

                       BATTLE MOUNTAIN GOLD CO.
            CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
                              (UNAUDITED)

                                                    Three months ended
                                                        March 31,
US$ millions, except per share amounts               1999       1998

Sales                                               $ 53.8     $ 78.9

Costs and expenses
 Production costs                                     36.6       43.7
 Depreciation, depletion and amortization             14.4       22.9
 Exploration, evaluation & other lease costs, net      3.9        5.3
 General and administrative expenses                   3.3        3.7
 Asset write-downs                                    10.4         --
  Total costs and expenses                            68.6       75.6

Operating income (loss)                              (14.8)       3.3

 Interest expense                                     (3.7)      (4.8)
 Interest income                                       1.0        2.6
 Foreign currency exchange gain, net                   3.1        0.5
 Equity in losses of Lihir                              --       (1.4)
  Other income, net                                    0.4        0.1

Income (loss) before income taxes and
  minority interest                                  (14.0)       0.3

 Income tax benefit                                    2.1        0.2
 Mining tax expense                                   (0.2)      (1.8)
 Minority interest in net loss (income)                0.2       (0.3)

Net loss                                             (11.9)      (1.6)
 Preferred dividends                                   1.9        1.9

Net loss to common shares                           $(13.8)    $ (3.5)

Loss per common share - basic and diluted           $(0.06)    $(0.02)

Dividends per common share                              --     $0.025

Average common shares outstanding for
  loss per share purposes - basic and diluted        229.8      229.8



                       BATTLE MOUNTAIN GOLD CO.
                 CONDENSED CONSOLIDATED BALANCE SHEET

                                                 March 31,    Dec. 31,
                                                   1999         1998
US$ millions                                    (Unaudited)

Assets
 Current assets
  Cash and cash equivalents                       $ 102.7     $ 147.6
  Restricted cash                                     7.7         7.7
  Accounts and notes receivable                      10.4        13.8
  Product inventories                                12.4        12.5
  Materials and supplies, at average cost            24.4        23.4
  Assets held for sale                               97.9       108.3
  Other current assets                                3.9         2.0
   Total current assets                             259.4       315.3

 Investments                                         19.9        19.4

 Property, plant and equipment, net                 336.3       339.0

 Other assets                                        18.7        20.4

Total assets                                      $ 634.3     $ 694.1

Liabilities and Shareholders' Equity
 Current liabilities
  Short-term borrowings                           $    --     $  14.9
  Current maturities of long-term debt               37.0        37.0
  Accounts payable                                   18.2        14.3
  Income and mining taxes payable                    17.9        23.9
  Other current liabilities                           8.8        12.9
   Total current liabilities                         81.9       103.0

 Long-term debt                                     192.0       203.6
 Deferred income and mining taxes                    70.1        72.0
 Other liabilities                                   50.9        50.1
  Total liabilities                                 394.9       428.7

 Minority interest                                    7.3        17.7

 Shareholders' equity                               232.1       247.7

Total liabilities and shareholders' equity        $ 634.3     $ 694.1



                       BATTLE MOUNTAIN GOLD CO.
            CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                              (UNAUDITED)

                                                   Three months ended
                                                       March 31,
US$ millions                                        1999        1998

Cash flows from operating activities
 Net loss                                          $(11.9)     $ (1.6)
 Adjustments to reconcile net loss to cash
   flows from operating activities:
  Depreciation, depletion and amortization           14.4        22.9
  Deferred income taxes                              (2.9)       (3.9)
  Foreign currency exchange gain, net                (3.1)       (0.5)
  Asset write-downs                                  10.4          --
  Equity in losses of Lihir                            --         1.4
  Change in working capital accounts, net            (4.5)        1.4
  Other, net                                         (0.3)        3.4

Net cash flows provided by operating activities       2.1        23.1

Cash flows from investing activities
 Capital expenditures                                (9.3)      (14.0)
 Crown Butte liquidating dividend to minority
   shareholders                                     (11.0)         --
 Other, net                                           0.2          --

Net cash flows used in investing activities         (20.1)      (14.0)

Cash flows from financing activities
 Debt repayments                                    (11.6)      (11.6)
 Decrease in short-term borrowings                  (14.9)       (4.9)
 Cash dividend payments                              (1.9)       (7.6)
 Increase in restricted cash                           --       (16.0)
 Other, net                                           0.1          --

Net cash flows used in financing activities         (28.3)      (40.1)

Effect of exchange rate changes on cash and
  cash equivalents                                    1.4         0.5

Net decrease in cash and cash equivalents           (44.9)      (30.5)
Cash and cash equivalents at beginning of period    147.6       185.0

Cash and cash equivalents at end of period         $102.7      $154.5



                       BATTLE MOUNTAIN GOLD CO.
       SUPPLEMENTAL INFORMATION -- OPERATING DATA (Unaudited)(a)
         (Production data reflects BMG attributable interests)
                      (US$, ounces in thousands)

                                                    Three months ended
                                                          March  31,
                                                       1999      1998
GOLDEN GIANT
  Gold ounces recovered                                  78       103
  Silver ounces recovered                                 3        10
 Cost per Gold Ounce Produced
  Cash production costs                               $ 167     $ 114
  Depreciation, depletion and amortization               64        69
  Reclamation and mine closure costs                      4         4
  Total production costs                              $ 235     $ 187

KORI KOLLO (88% Interest)
  Gold ounces recovered                                  64        77
  Silver ounces recovered                               201       236
 Cost per Gold Ounce Produced(b)
  Cash production costs                               $ 189     $ 167
  Depreciation, depletion and amortization               85       134
  Reclamation and mine closure costs                     11        10
  Total production costs                              $ 285     $ 311

HOLLOWAY (84.65% Interest)
  Gold ounces recovered                                  20        18
 Cost per Gold Ounce Produced
  Cash production costs                               $ 206     $ 253
  Depreciation, depletion and amortization              126       120
  Reclamation and mine closure costs                      2         2
  Total production costs                              $ 334     $ 375

VERA/NANCY (50% Interest)
  Gold ounces recovered                                  14        12
  Silver ounces recovered                                12        10
 Cost per Gold Ounce Produced
  Cash production costs                               $ 116     $ 138
  Depreciation, depletion and amortization               31        27
  Reclamation and mine closure costs                      1         1
  Total production costs                              $ 148     $ 166

OTHER(c)
  Gold ounces recovered                                            35
  Silver ounces recovered                                          36
 Cost per Gold Ounce Produced
  Cash production costs                                         $ 214
  Depreciation, depletion and amortization                         98
  Total production costs                                        $ 312



                     BATTLE MOUNTAIN GOLD CO.
       SUPPLEMENTAL INFORMATION -- OPERATING DATA (Unaudited)(a)
         (Production data reflects BMG attributable interests)
                      (US$, ounces in thousands)

                                                    Three months ended
                                                          March 31,
                                                       1999     1998
AGGREGATE DATA
 Gold ounces recovered - BMG share                      176       246
 Gold ounces sold - BMG share                           177       244
 Gold ounces recovered                                  185       276
 Gold ounces sold                                       186       262
 Average price per gold ounce realized                $ 286     $ 307

 Silver ounces recovered - BMG share                    216       291
 Silver ounces sold - BMG share                         217       288
 Silver ounces recovered                                244       336
 Silver ounces sold                                     245       332
 Average price per silver ounce realized              $5.26     $6.37

 Weighted Average Cost per Gold Ounce Produced
 Cash production costs                                $ 175     $ 156
 Depreciation, depletion and amortization                76        96
 Reclamation and mine closure costs                       6         5
 Total production costs                               $ 257     $ 257

(a)  Effective Jan. 1, 1999, current- and prior-period production
     costs are presented on an ounces-produced basis, vs. an ounces-
     sold basis, as previously reported.

     Cash production costs are presented in accordance with guidelines
     established by The Gold Institute. In addition to mining, milling
     and plant-level general and administrative expenses, cash
     production costs include royalties, freight, smelting costs and
     allowances, and production taxes. Credits for by-product silver
     and copper are offset against these cash production costs. This
     standard also provides for reporting on a cost-per-gold-ounce
     basis, rather than cost per equivalent gold ounce.

(b)  Royalties paid to the Bolivian government for the Kori Kollo mine
     are treated as income tax for per ounce cost calculations and are
     therefore not included in these cost calculations.

(c)  Includes Battle Mountain Complex, Lihir and San Cristobal.
     Production data is not presented for 1999 as the Battle Mountain
     Complex Reona mine has been placed on care and maintenance
     effective Jan. 1, 1999. Results of Lihir Gold Ltd. and San
     Cristobal are not consolidated in 1999 as the company has
     classified its investment in Niugini Mining Ltd. as an asset held
     for sale as of Dec. 31, 1998.