Battle Mountain Gold Posts Third Quarter/Nine Months Profit.

HOUSTON--(BUSINESS WIRE)--Nov. 3, 1997--Battle Mountain Gold Co. (NYSE:BMG) (TSE:BMC) Monday announced third quarter consolidated net income of $23.5 million, or 10 cents per share.

The third quarter profit compares with a net loss of $49 million, or 21 cents per share, in the same period last year, when the company incurred costs related to asset write-downs and merger expenses. For the first nine months of 1997, consolidated net income was $11.5 million, or 5 cents per share. This compares with a consolidated net loss of $42.3 million, or 18 cents per share in the same period in 1996.

The turnaround in third quarter and year-to-date earnings resulted primarily from benefits associated with the company's restructuring of ownership of certain consolidated assets. On Sept. 30, 1997, Battle Mountain Gold (BMG) sold its 50.5 percent interest in Niugini Mining Ltd. to Battle Mountain Canada Ltd. (BMC), a subsidiary of BMG.

This transaction was facilitated primarily by a $145 million bank borrowing by BMC. The proceeds of the sale have been invested by Battle Mountain Gold in the United States. Because management expects to continue investing these sale proceeds in the United States in future years, the company has necessarily revised certain assumptions related to its accounting for U.S. income taxes, primarily as it relates to the remittance of Canadian earnings and projections of future U.S. taxable income.

According to current business plans, management no longer expects to remit to the United States any accumulated or future Canadian earnings generated by BMC, as the sale proceeds are expected to be sufficient to meet its operating needs in the United States in the near future.

Additionally, the income expected to be derived from such funds has led management to project U.S. taxable income in future years sufficient to recognize currently a portion of the company's net operating loss carryforwards in the United States.

As a result, the company has recorded a $17 million U.S. income tax benefit in the third quarter, representing a release of certain deferred tax asset valuation allowances and certain withholding tax liabilities previously recorded.

Additionally, BMG recognized tax benefits of $7 million during the third quarter as a result of revised projections of future taxable income at certain of the company's subsidiaries, which resulted in third quarter recognition of net operating loss carryforwards at these subsidiaries. Because of the previously mentioned restructuring, the company has canceled its $150 million revolving credit facility.

The most important factor impacting 1997 operating earnings has been much lower average realized gold prices of $332 and $346 per gold ounce sold in the third quarter and nine months, respectively, compared with $388 and $393, respectively, in the same periods of 1996. The impact of lower gold prices was partly offset by lower operating costs.

BMG President and Chief Executive Officer Ian D. Bayer said net cash flow from operations of $45.3 million for the first nine months of 1997 was impacted by low gold prices. This compares with $40.7 million in the same period last year, which had been affected by merger costs of $20 million.

Capital expenditures were $48.2 million in the first nine months, up 20 percent from the same period in 1996.

Cash production costs in the quarter and first nine months averaged $197 and $201 per gold ounce sold, respectively, compared with $215 and $207 per ounce, respectively, last year. The quarter and nine months 1997 costs were higher than anticipated because of problems and lower gold production at the Holloway and San Cristobal mines.

Bayer noted that, despite the current low gold price environment, the company's quality assets mean that it is well positioned operationally. Battle Mountain Gold produced some 74 percent of its attributable gold ounces during the first nine months at an average cash cost of $165 per ounce.

Attributable gold production for the third quarter of 1997 was approximately 214,000 ounces, compared with about 215,000 ounces in the same period last year. For the first nine months of 1997, attributable gold production was 639,000 ounces, compared with 698,000 in the first nine months of 1996.

Bayer said the company now expects to produce approximately 860,000 ounces of gold this year because of anticipated shortfalls, primarily at Holloway and San Cristobal.

Bayer added that the company is continuing to evaluate all of its activities with the objective of lowering costs and expenses and that, among other things, as previously announced it is reducing its overall investment in exploration. He went on to say that the company is tightening its exploration focus and is placing its emphasis on high priority exploration projects.

Operations

The Golden Giant mine is expected to produce in excess of 350,000 ounces of gold in 1997 at a cash cost of some $140 per ounce.

At Kori Kollo in Bolivia, where BMG holds an 88 percent interest, the production target is 280,000 attributable ounces at a cash cost of $195 per ounce. Programs to enhance both the metallurgical recoveries and mill throughput are continuing. Improvements have also been made in ore grade control in the open pit, and administrative and operational changes made earlier this year are showing results.

At the nearby Llallagua deposit, a 2,200-ton pilot heap leach program is being conducted to test the feasibility of bio-oxidation of this refractory sulfide material. This zone, which is not in current reserves, contains 38.6 million tons and has an average grade of .046 ounces per ton. Initial results from this project are expected in the first half of next year.

Results at the company's 85 percent-owned Holloway mine have been disappointing. Operating costs have been too high and average grades are below plan as a result of dilution. BMG is taking a number of steps to improve the performance of this operation.

Full capacity was achieved early in the third quarter; however, an unexpected mechanical failure at a third-party custom milling site, which processes two-thirds of the Holloway ore, has now caused targeted mine production at Holloway to be reduced by about 6,000 ounces of gold per month.

This reduction is expected to last for at least the next month, and possibly for the remainder of this year. As a result, underground activities have been reduced, but during the reduction, the company will continue to emphasize mine development, planning and cost control.

The Reona mine, located at the Battle Mountain Complex in Nevada, continued to experience lower production costs which averaged $269 per ounce during the third quarter, compared with $329 per ounce during the same period in 1996. Mining activity at Reona is scheduled to cease at year end, with recoveries continuing from the heap leach pads over the next four years. Also at the Battle Mountain Complex, the company continues to study the economics and timing, and to work toward the permitting of the Phoenix development project. A Draft Environmental Impact Statement is expected to be released in 1998.

At the company's Crown Jewel project in Washington state, where BMG is earning a 54 percent interest, additional favorable permit decisions were received in the third quarter, and the company Monday received positive water rights permit decisions. The Scheduling Agreement between the company and Washington state permitting agencies provides time lines for the making of the remaining state permit decisions. An appeal by special interest groups of the administrative decision upholding the Record of Decision and EIS for the project is pending in United States District Court. The action previously filed by a special interest group in County Superior Court has been dismissed; however, special interest groups have now filed an action before a state administrative tribunal challenging the EIS and certain permit decisions. The impact and timing of resolution of these and any other appeals related to the permitting process cannot be determined at this time with any accuracy.

At the Pajingo joint venture in Australia, commercial production was achieved during the third quarter, and work is continuing on the Vera/Nancy declines. Development of the ore body is progressing, and selective mining has proven successful in producing high grade ore while achieving scheduled advance rates. BMG and Normandy Mining Ltd. each hold a 50 percent interest.

In Papua New Guinea, Battle Mountain Gold has an 8.7 percent attributable interest in the Lihir development project. Construction is now complete, and processing of the sulfide ore has begun. Indications are that the mine will operate at more than 80 percent of capacity during the remainder of 1997 and produce about 220,000 ounces of gold this year. That is about 25 percent ahead of the previous forecast. The forecast for 1998 gold production has been revised to 625,000 ounces, an increase of more than 30 percent from the original 1995 forecast of 476,000 ounces. These revised estimates are due to the smooth start up of the pressure oxidation circuit that treats the higher-grade sulfide ore.

The Red Dome mine in Queensland, Australia, which performed above expectations for the nine months, was closed on Oct. 13 following depletion of the ore body. At the San Cristobal mine in Chile, production has been substantially below plan, resulting in much higher operating costs per ounce. The company is currently monitoring San Cristobal on a month-to-month basis, with the expectation that mining will cease by January 1998 at BMG earnings, at the latest. Production from heap leach pads will continue for a number of months after that time.

Exploration

As previously announced, BMG's investment in exploration is being reduced to $25 million per annum, compared with previously planned annual budgets of $35 million.

At the Pajingo joint venture in Queensland, the company is spending approximately $3 million on exploration targets in the vicinity of the Vera/Nancy deposit. The program includes drilling to follow up potential north and south extensions to the Vera/Nancy deposit. The drill program includes definition drilling along strike to extend the deposit both north and south. Results from drilling some 1,300 feet to 3,300 feet east southeast of Vera include .69 opt over 12.9 feet, .36 opt over 7.5 feet, .29 opt over 6.7 feet, and .16 opt over 19.7 feet. Limited deep drilling on a parallel structure to the west returned a best intercept of .23 opt over 10.2 feet. The joint venture is also working on a number of other targets on the extensive Pajingo property that will be followed up over the next two to three years as part of an ongoing program. Drilling will test for new deposits using guidelines derived from a recently completed structural study. At Kori Kollo, in Bolivia, BMG has an 88 percent interest in large land holdings around the mine site in a young, emerging gold district. It is undertaking an extensive exploration program to develop targets along the main structural gold trends under the extensive pampa cover of the altiplano. Initial test work has identified a number of survey techniques that are working to identify targets beneath the pampa. Priority drill targets have been identified along the trend of the Kori Kollo deposit and drilling has commenced. New property has been acquired as the company continues to identify high potential areas. BMG plans to spend approximately $2 million per year exploring its large land holdings in this area for the next 3 to 4 years.

At the Battle Mountain Complex, there are a number of areas of opportunity to potentially increase reserves. One is in the immediate area of the Phoenix pit, where BMG believes there is potential to add approximately 20 percent to the Phoenix reserve. Five reverse circulation rigs are now at work, and the company hopes to have results by the first quarter of next year. This work has important design ramifications for the Phoenix pit. The second opportunity is to look for new Fortitude-style targets at depth. A review and compilation of all previous work has shown a large area some 6,000 feet long by 2,000 feet wide to the west of the Phoenix and Fortitude deposits which has excellent potential for Fortitude-style gold-rich skarn mineralization. Previous drilling has returned intervals of up to 96 feet of .17 opt material, which includes 25 feet of .41 opt mineralization. BMG currently has completed two deep holes on this extensive area, both of which were low grade but have intercepted the right stratigraphy showing strong skarn mineralization, and a further two deep holes are in progress.

In addition to the exploration work, the company is also continuing to evaluate the parameters of the Phoenix project and is working to improve the overall economics by lowering its projected development and operating costs. BMG plans to do additional metallurgical studies on the Phoenix ore during the next half year. This work will seek to lower costs by using gravity concentration, followed by flotation of a copper concentrate and cyanidation of an iron concentrate. The key to the success of this test work will be whether or not all of the Phoenix ores respond similarly. If this round of tests is successful, a pilot plant program will likely follow. Ultimately, if successful, this work could reduce operating costs, particularly for cyanide, and may permit the company to bring into reserves significant gold/copper mineralization which was not previously considered economic because of the high rate of cyanide consumption.

The Teddy Bear project is located on the favorable Destor Porcupine fault in northeast Ontario, and covers the down-dip extension of the Holloway deposit. Ongoing exploration on the property has confirmed the potential at depth. Deep drilling completed late last year intersected the mineralized Lightning Zone some 1,900 feet below the previous deepest intersection. The zone returned assays of .33 opt of gold over 9.5 feet, clearly demonstrating potential to increase the reserve picture at depth at the Holloway mine. Battle Mountain has a 60 percent interest in this extension.

In the Hemlo camp, the company has extensive land holdings to the west of the Golden Giant mine and around the North Limb. Results obtained over the last two years have continued to give good encouragement both on the North Limb and Sceptre properties. Work on the Sceptre property has focused on both new surface prospects that have been developed, as well as testing down-plunge extensions of the Hemlo ore body itself. A proposal is being prepared to evaluate the down dip extension of the Sceptre-C Zone by both surface and underground drilling. Recent drilling on BMG property returned interesting gold values including .17 opt over 36 feet. In addition, surface work elsewhere on the Sceptre property has identified other porphyries similar to the Moose Lake porphyry, which hosts the Golden Giant mine. BMG is planning to invest a minimum of $2 million per year on exploration in the Hemlo Camp over the next 3 to 4 years to evaluate all of its targets.

On the Dunkwa property in Ghana, where BMG can earn a 65 percent interest, a nine-hole diamond drilling program was completed to follow-up on the encouraging trench and reverse circulation drill results obtained on the Opon and 8600E anomalies earlier this year. At Opon, better drill intercepts from the diamond program include .07 opt gold over 89 feet and .02 opt over 62 feet, while better intercepts at 8600E include .04 opt over 26.6 feet, .03 opt over 84.4 feet, .04 opt over 35 feet and .04 opt over 50.5 feet. Ongoing sampling and trenching from new trends elsewhere on the property are continuing to give encouraging results which include .05 opt over 151 feet, .06 opt over 92 feet and .04 opt over 118 feet. Work on the interesting Mampon prospect in the Forest Reserve continues to await finalization of rules and regulations by the government.

In Argentina, Battle Mountain Gold has extensive, well-located land holdings, covering some 988,000 acres. Fifty-five cateos have been acquired to cover extensions of the Maricunga and El Indio gold belts, which extend from Chile into Argentina. As infrastructure is developed in the high Cordillera region of the Andes, BMG will continue to carry out target definition work and diamond drilling of targets as they are defined. Although this is early stage exploration work, the company already has some encouraging indications from large alteration systems that we believe have excellent potential. Activities here are expected to increase later this year.

In Chile, BMG (60 percent) is finalizing an agreement with Codelco for a joint venture with Orvana Minerals for exploration in the Maricunga gold belt. The company's objective is to follow up encouraging gold and silver geochemical sampling on the Tamberia property, which is about 15 miles north, northeast of La Coipa.

Work on the Volta Grande joint venture in Brazil, in which Battle Mountain Gold is earning a 50 percent interest, continues to give encouraging results. To date, some 60 holes have been drilled to evaluate multiple sub-parallel zones of gold mineralization over a strike length of some 1.5 miles. On a broad scale, the zone demonstrates good continuity along strike and down dip, and has the potential to develop into a large open-pittable gold reserve. There are four drills currently evaluating the property. Recent results from the main zone include .15 opt over 56 feet. Initial drilling on a new zone 1.2 miles to the northwest of the main zone intersected .044 opt over 171 feet. Fifteen trench samples of a new discovery 1.1 miles along strike to the east of the main zone returned values averaging .08 opt.

In Mexico, drilling is under way on the El Cairo property, which covers an extremely large surface geochem anomaly some 1.5 miles in length and almost 1 mile wide. The recent drill program of 26 holes continues to confirm the possibility for a bulk tonnage, leachable gold deposit. Some of the better intercepts include 669 feet of mineralization, including .035 opt Au over 113 feet; and 481 feet of mineralization, including .048 opt Au over 94 feet and .033 opt over 210 feet. Drilling is in progress to further evaluate and expand the mineralization, and to test two new areas with similar alteration features. -0- Visit the company's Web site at http://www.bmgold.com -0-

The United States 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.
                    CONSOLIDATED STATEMENT OF INCOME
                               (UNAUDITED)
                  (in millions, except per-share data)


                                    Three months      Nine months
                                       ended            ended

                                     Sept. 30,         Sept. 30,
                                   1997      1996     1997    1996

Sales                             $90.2     $91.0    $257.9  $316.3

 Costs and expenses
  Production costs                 61.4      56.2     168.6    184.9
  Depreciation, depletion and
   amortization                    18.3      20.2      52.2     66.4
  Exploration, evaluation and
   other lease costs                5.8       9.2      17.3     23.8
  Asset write-downs                  --      38.5        --     38.5
  Merger expense                     --      19.2       2.3     20.0
  General and administrative        2.8       3.7      10.9     11.6
  Total costs and expenses         88.3     147.0     251.3    345.2
Operating income (loss)             1.9     (56.0)      6.6    (28.9)

  Interest and other income         1.1       4.4       4.4      7.3
  Interest expense                  1.5       1.6       4.5      4.9

Income (loss) before income
 taxes and minority interest        1.5     (53.2)      6.5    (26.5)

  Income tax expense (benefit)    (24.9)      2.2     (17.6)    12.5
  Mining taxes                      0.6       1.9       4.6      9.6
  Minority interest in net
   loss (income)                   (0.4)     10.2      (2.4)    11.9

Net income (loss)                  25.4     (47.1)     17.1    (36.7)
    Preferred dividends             1.9       1.9       5.6      5.6

Net income (loss) to common       $23.5    $(49.0)    $11.5   $(42.3)

Income (loss) per common share      $.10     $(.21)     $.05    $(.18)

Dividends per common share          $.025     $.024     $.050    $.066

Average common shares
 outstanding for income per share
 purposes                           234.6     229.9     234.6   229.6

-0-

                        BATTLE MOUNTAIN GOLD CO.
                       CONSOLIDATED BALANCE SHEET
                               (UNAUDITED)
                              (in millions)

                                         Sept. 30,  Dec. 31,
                                           1997       1996
Assets
 Current assets
   Cash and cash equivalents              $201.8    $94.0
   Restricted cash                           8.6      9.0
   Accounts and notes receivable            29.4     48.7
   Inventories                              11.5     10.4
   Materials and supplies, at average cost  24.9     28.9
   Other current assets                     11.1     12.7
      Total current assets                 287.3    203.7

   Investments                             253.3    248.8

   Property, plant and equipment, net      551.6    565.4

   Other assets                             39.4     19.0

Total assets                            $1,131.6 $1,036.9

Liabilities and Shareholders' Equity
 Current liabilities
   Short-term borrowings                    $9.3    $21.8
   Current maturities of long-term debt     37.2     13.6
   Accounts payable and accrued
    liabilities                             33.2     44.7
   Income and mining taxes payable           5.6     18.1
   Other current liabilities                 4.1      6.1
      Total current liabilities             89.4    104.3

   Long-term debt                          260.5    139.2
   Deferred income and mining taxes         96.5    106.9
   Other liabilities                        43.2     41.0
      Total liabilities                    489.6    391.4

   Minority interest                       108.1    107.2

   Shareholders' equity                    533.9    538.3

Total liabilities and shareholders'
 equity                                 $1,131.6 $1,036.9

-0-

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

                                           Nine months
                                              ended

                                            Sept. 30,
                                          1997      1996

Cash flows from operating activities:
   Net income (loss)                      $17.1   $(36.7)
   Adjustments to reconcile net income
    (loss) to cash flows
    from operating activities:
      Depreciation, depletion and
       amortization                        52.2     66.4
      Deferred income tax benefit         (32.8)    (4.4)
      Asset write-downs                      --     38.5
      Change in current assets and
       liabilities                          3.1    (16.8)
       Other, net                           5.7     (6.3)

Net cash flows provided by operating
 activities                                45.3     40.7

Cash flows from investing activities:
  Capital expenditures                    (48.2)   (40.1)
  Other, net                               (0.5)    (7.2)

Net cash flows used in investing
 activities                               (48.7)   (47.3)

Cash flows from financing activities:
  Cash proceeds from borrowings           162.8     18.8
  Debt repayments                         (17.9)   (43.7)
  Decrease in short-term borrowings       (12.5)   (13.0)
  Cash dividend payments                  (17.1)   (20.7)
  Cash proceeds from stock issuances        0.6      1.9
  Other, net                                0.5      0.1

Net cash flows provided by (used in)
 financing activities                     116.4    (56.6)

Effect of exchange rate changes on cash
 and cash equivalents                      (5.2)     2.5

Net increase (decrease) in cash and cash
 equivalents                              107.8    (60.7)
Cash and cash equivalents at beginning of
 period                                    94.0    142.2

Cash and cash equivalents at
 end of period                          $ 201.8    $81.5

-0-



                        BATTLE MOUNTAIN GOLD CO.
                        SUPPLEMENTAL INFORMATION
                      OPERATING DATA (Unaudited)(a)
        (All production data reflects BMG attributable interests)

                                         Three months     Nine months
                                            ended            ended
                                           Sept. 30,       Sept. 30,
                                         1997    1996    1997    1996
GOLDEN GIANT
    Gold recovered (000s oz)               85      83     262     285
    Silver recovered (000s oz)              4       4      12      12
  --------------------------------------------------------------------
  Cost Per Gold Ounce Sold
    Cash production costs                $130    $159    $140    $140
    Depreciation, depletion and
     amortization                          64      66      65      62
    Reclamation and mine closure
     costs                                  4       3       4       2
    Total production costs               $198    $228    $209    $204
----------------------------------------------------------------------

KORI KOLLO (88% Interest)
    Gold recovered (000s oz)               73      67     207     203
    Silver recovered (000s oz)            180     203     561     630
  --------------------------------------------------------------------
  Cost Per Gold Ounce Sold (b)
    Cash production costs                $197    $217    $196    $215
    Depreciation, depletion and
     amortization                         102     112     106     109
    Reclamation and mine closure
     costs                                  7       3       8       3
    Total production costs               $306    $332    $310    $327
----------------------------------------------------------------------

HOLLOWAY JOINT VENTURE (84.7 percent Interest)(c)

   Gold recovered (000s oz)                13              42
  --------------------------------------------------------------------
  Cost Per Gold Ounce Sold
    Cash production costs                $329            $332
    Depreciation, depletion and
     amortization                         123             119
    Reclamation and mine closure
     costs                                  2               2
    Total production costs               $454            $453
----------------------------------------------------------------------

BATTLE MOUNTAIN COMPLEX
    Gold recovered (000s oz)               20      17      59      53
    Silver recovered (000s oz)             34      45     106     171
  --------------------------------------------------------------------
  Cost Per Gold Ounce Sold
    Cash production costs                $269    $329    $274    $315
    Depreciation, depletion and
     amortization                          41      67      37      70
    Reclamation and mine closure
     costs                                 45      61      44      31
    Total production costs               $355    $457    $355    $416
----------------------------------------------------------------------

-0-

                        BATTLE MOUNTAIN GOLD CO.
                        SUPPLEMENTAL INFORMATION
                      OPERATING DATA (Unaudited)(a)
        (All production data reflects BMG attributable interests)

                                         Three months     Nine months
                                             ended           ended
                                           Sept. 30,     Sept. 30,
                                         1997    1996    1997    1996
SAN CRISTOBAL (50.5% Interest)
    Gold recovered (000s oz)               10       9      27      30
    Silver recovered (000s oz)             21      22      58      74
  --------------------------------------------------------------------
  Cost Per Gold Ounce Sold
    Cash production costs                $435    $372    $412    $356
    Depreciation, depletion and
     amortization                          68     102      54      99
    Reclamation and mine closure
     costs                                  -       -       -       -
    Total production costs               $503    $474    $466    $455
----------------------------------------------------------------------

RED DOME (50.5% Interest)
    Gold recovered (000s oz)                4      10      24      33
    Silver recovered (000s oz)             82      53     162     213
    Copper recovered (000s lb)          2,485     896   3,702   3,501
  --------------------------------------------------------------------
  Cost Per Gold Ounce Sold
    Cash production costs                $225     $280    $239    $235
    Depreciation, depletion and
     amortization                          31       81      20     133
    Reclamation and mine closure
     costs                                 15       31      13      11
    Total production costs               $271     $392    $272    $379
----------------------------------------------------------------------

PAJINGO JOINT VENTURE (50% Interest)(d)
    Gold recovered (000s oz)                8       7       8      27
    Silver recovered (000s oz)             10      14      10      24
  --------------------------------------------------------------------
  Cost Per Gold Ounce Sold
    Cash production costs                $181    $182    $181    $239
    Depreciation, depletion and
     amortization                          29      12      29      82
    Reclamation and mine closure
     costs                                  2       -       2       2
    Total production costs               $212    $194    $212    $323
----------------------------------------------------------------------

SILIDOR JOINT VENTURE (55% Interest)(e)
   Gold recovered (000s oz)                 1       6      10      19
  --------------------------------------------------------------------
  Cost Per Gold Ounce Sold
    Cash production costs                $239    $334    $318    $347
    Depreciation, depletion and
     amortization                           -     106      39      70
    Reclamation and mine closure
     costs                                  -      10       5       3
    Total production costs               $239    $450    $362    $420
----------------------------------------------------------------------

-0-

                        BATTLE MOUNTAIN GOLD CO.
                        SUPPLEMENTAL INFORMATION
                      OPERATING DATA (Unaudited)(a)
        (All production data reflects BMG attributable interests)

                                         Three months     Nine months
                                             ended           ended
                                           Sept. 30,       Sept. 30,
                                         1997    1996    1997    1996
SAN LUIS (f)
    Gold recovered (000s oz)                       15              48
    Silver recovered (000s oz)                      9              28
  --------------------------------------------------------------------
  Cost Per Gold Ounce Sold
    Cash production costs                        $261            $275
    Depreciation, depletion and
     amortization                                 133             101
    Reclamation and mine closure
     costs                                         13              15
    Total production costs                       $407            $391
----------------------------------------------------------------------

AGGREGATE DATA
   Gold recovered BMG share (000s oz)     214     215     639     698
   Gold sold BMG share (000s oz)          221     208     637     691
   Gold recovered (000s oz)               237     243     717     787
   Gold sold (000s oz)                    251     230     714     771
   Average price per oz realized         $332    $388    $346    $393
  --------------------------------------------------------------------
   Silver recovered BMG share (000s oz)   331     350     908   1,151
   Silver sold BMG share (000s oz)        343     304     848   1,105
   Silver recovered (000s oz)             456     451   1,201   1,517
   Silver sold (000s oz)                  485     359   1,087   1,415
   Average price per oz realized        $4.43   $5.05   $4.75   $5.30
  --------------------------------------------------------------------
   Weighted Average Cost Per Gold Ounce Sold

    Cash production costs                $197    $215    $201    $207
    Depreciation, depletion and
     amortization                          75      88      76      84
    Reclamation and mine closure
     costs                                  9       8      9        6
    Total production costs               $281    $311    $286    $297
----------------------------------------------------------------------

(a) 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 new North American standard also provides for reporting on a cost per gold ounce basis, rather than cost per equivalent gold ounce.

(b) In 1997, a new tax law was passed in Bolivia that imposes an