Big Blackfoot Resources Ltd. proceeds with the acquisition of Big Blackfoot Mine Inc.

CALGARY, Alberta--(BUSINESS WIRE)--Jan. 6, 1997--Big Blackfoot Resources Ltd. (BLF - A) is proceeding with the acquisition of Big Blackfoot Mine Inc., a private company, as its major transaction. The sole asset which will be conveyed to the Company is a 100% interest in the Plata-Inca precious metal property, located in the Mayo Mining District, Yukon Territory, subject only to an option agreement with Yukon Gold Corp. (YKN-VSE) a well-financed, Vancouver-based Gold Corp. has the right to earn a 70% interest in the property, by spending $2,100,000 over 4 years maximum, then to proceed to a 70% - 30% joint venture. Yukon Gold has expressed interest in negotiating a purchase of the Company's 30% interest.

The Plata-Inca property was discovered in regional explorations in 1969. Explored in 1969-1974, bulk sampled in 1975-1976 (250 oz. of silver per ton, from a 110 ton shipment of hand picked ore) and acquired by a principal of Big Blackfoot Mine Inc. in 1983. It was mined from 1983 through 1987, to produce 500,000 ounces of silver and approximately 200,000 tons of lead. Low silver and lead prices then discouraged exploration for those metals, but the final drilling program in 1987, proved 225,000 tons of near surface ore at 0.108 ounces per ton gold and 20 ounces per ton of silver at the P-4 zone, with approximately 10% lead-zinc sulphides.

The property value was up-graded after analyzing geology of other gold mining developments (Fairbanks Gold, Loki, First Dynasty) in Eastern Alaska and West Central Yukon. A University of British Columbia based research team determined that all such significant gold occurrences were in an east-west trending sinuous band of geological exposures of the Tombstone formation, to which the Plata property is central in the Hess-Rogue River region. Yukon Gold Corp. was formed independently to explore Tombstone Formation outcrops in the Mayo District, and acquired an option to explore the Plata property for its newly recognized gold potential, as it mobilized for it's 1996 exploration program.

Yukon Gold has spent approximately $2,000,000 or more in the Hess-Rogue River region and about $350,000 on the Plata property itself, in an August 1996 drilling program. It estimates that a minimum of $500,000 will be spent in additional drilling in 1997, and an initial summary of the 1996 program is quoted herewith, as stated in a Yukon Gold Corp. news release of October 26, 1996. -0-

Excerpt from - Yukon Gold Corp. news release of October 26,

1996.

Assay results from the final stages of the 1996 program from

exploration trenching and drilling on the Plata thrust fault

zone performed in September and October 1996, are to be

released in January, 1997. Preliminary indications are that

the results are highly encouraging at surface, and appear to

extend the Plata thrust zone drilled deposit significantly to

the North, and that previous isolated surface outcrops may

indicate continuity of a significant precious metal (gold,

silver) deposit with tonnages which demand mining feasibility

studies after significant drilling exploration to confirm

the developing conceptual model. -0-

Assay results will be released in early January, according to Yukon Gold Corp., and Big Blackfoot Resources Ltd. will make them available as soon as they are received.

Big Blackfoot Resources continues active prospecting, examining and acquisition and potentially mineable gold properties in the 200,000 - 500,000 ounce gold class, preferably located in North America, near transportation, mining and smelting infrastructure. Southern British Columbia, Yukon, and the Mountain States are its main area of interest at this time, and acquisition terms are currently being negotiated.

This information release is neither approved nor disapproved by the Alberta Stock Exchange.

CONTACT: Big Blackfoot Resources Ltd.

Paul S. White, 403/269-2122

Fax: [phone]

e-mail: [e-mail]