Brush Creek Reopens Lawry Side of Ruby Mine; Company Installs 600KW Power Plant to Process Placer and Hard Rock Simultaneously.

GRASS VALLEY, Calif.--(BUSINESS WIRE)--June 3, 1998--Brush Creek Mining a(NASDAQ:BCMDD) Brush Creek Mining and Development Co., Inc. (NASDAQ:BCMDD) (the Company) today announced that it has reopened the Lawry side of the Ruby Mine. While the Lawry area has hard rock exploration targets, the Company will initially mine underground river channels for placer gold. The Company expects to be in gravel within two weeks and in the historic Black Channel within three weeks. The event marks the first time in the Company's history the two of its mines are operating simultaneously.

Brush Creek has a 1000 ton per day placer trommel and a hard rock mill in place. It has recently taken delivery of a 600KW power plant which will allow the Company to run the placer and hard rock material at the same time.

James S. Chapin, CEO and Chairman of the Board, stated, "It remains our goal to open two more mining sites this year. Our next targets will be the Big Bend area of the Ruby Mine and the Carson Mine. Just prior to its forced closure by World War II, the Big Bend yielded a spectacular nugget collection which is now housed in the Los Angeles Museum of Natural History. The largest nugget in the collection was over 52 oz. The area which yielded the nuggets was not mined out according to Louis Huelsdonk, the mine superintendent at that time. No one has been back to the Big Bend since and we are excited about its potential. The Carson was sampled by Keewatin Engineering in 1991. They reported that sludge samples from the southern ore shoot in the vicinity of the raises returned a high value of 31.903 oz per ton gold over 4.0 feet from raise number 1. A further five sludge samples returned values above 1 oz per ton gold and 26 samples yielded results between .1 and 1 oz per ton gold."

Certain statements contained herein constitute "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance, achievements expressed or impled by such forward looking statements. Such factors include, among others, the factual results of current exploration activities, future prices of gold as well as adequate funding to perform the work.

Brush Creek controls nine historic mines in the Alleghany-Downieville gold district of Northern California, which produced more than 12 million ounces of placer and 2 million ounces of hard rock gold. It also controls more than 4000 acres of potentially diamondiferous ground near La Porte, California.

    CONTACT:  Brush Creek Mining and Development Co., Inc.
               Lionel Gosselin, 888/272-7335
               or
               Brush Creek Mining and Development Co., Inc.
               Jim Chapin, 530/ 477-5961