Bullion River Gold Corp. Signs Letter of Intent to Acquire the Washington and Niagara Mines and Plans to Re-open Mines in 2005.

RENO, Nev. -- Bullion River Gold Corp. (OTCBB:BLRV) (FRANKFURT:BMV) has signed a Letter Agreement with two privately owned corporations based in Wisconsin for the acquisition of the Washington and Niagara mines (the "Property").

The Property is located within the French Gulch mining district of the Klamath Mountains Province, 15 miles northwest of Redding in northwestern California. The Province has produced at least 7 million ounces of gold from placer and mesothermal quartz vein deposits broadly similar to vein districts of the Mother Lode region in east-central California. French Gulch has been the largest producer in the Province, yielding an estimated 1.5 million ounces of gold, and it contains the highest grades in the Province, with ore shoots typically grading above 0.5 opt, and commonly above 1.0 opt. The district comprises a number of past-producing vein mines along an easterly-trending belt 1.5 miles wide and 10 miles long, with veins producing gold through a vertical range of 3,400 feet.

At the Washington mine, a series of at least six steeply-dipping, east-trending gold-bearing quartz veins occurs across a width of at least 800 feet and a strike length of at least 1,000 feet. Mineralization has been mined over a vertical range of only 500 feet along ore shoots, which rake moderately west (approximately 45 degrees), but mineralization remains open at depth and along strike. Coarse visible gold is common. The Niagara mine workings, about 1 mile west of Washington, are at present inaccessible. The mine consisted of 10 levels that exploited veins similar to those at Washington, with production over 500 feet vertically and along 1,200 feet of strike.

The Property has produced at least 200,000 ounces of gold, but production records are incomplete. Mining and gold production on the Washington veins commenced in 1852, the first bedrock gold mine in the Province, and continued intermittently through 2001. High-grade mineralization mined in recent years has included one small zone on the Lucky-7 vein, which yielded about 8,800 tons grading 1.13 opt Au in the mid 1990's. However, there has been very limited exploration drilling from surface and underground. Recent intensive underground sampling across veins has returned high grades, including 5.0 feet (1.5m) grading 6.59 opt Au (192.21 g/t) from the Lucky-7 Vein on the 2630 Level. Dr. Jacob Margolis, Bullion River's VP of Exploration, states, "The Property offers us a great opportunity to continue to delineate high-grade mineralization. There's been no systematic effort to aggressively drill test across the vein system, along strike and at depth. Such work should allow us to develop additional substantial long-term resources and reserves."

The Property consists of 1,022 acres, of which 482 acres are patented land. The project includes a mill that operated as recently as 2002, consisting of a gravity and flotation circuit as well as a furnace for producing dore. Bullion River plans to complete a comprehensive feasibility audit over the next three months. The audit will evaluate the viability of the mine's permits, mill facilities and underground conditions. It will also allow for development of a mine engineering plan and estimations of capital requirements and future operational costs. Furthermore, the geology and mineralization will be evaluated, and a three-dimensional model of underground workings and veins will be created. With this information Bullion River will develop of exploration strategies and various production scenarios.

Bullion River has paid a non-refundable deposit of $10,000 to the owners of the Property, which allows Bullion River 90 days to conduct its due diligence on the Property. As consideration for the deposit, the owners of the Property have granted Bullion River the exclusive right to acquire the Property for a period of 90 days. If the results of the due diligence on the Property are to Bullion River's satisfaction, Bullion River will enter into a more formal agreement with the owners to acquire a 100% in the Property. Upon signing the formal agreement, Bullion River will pay the owners $15,000 and will pay an additional $50,000 on June 30, 2005, at which time a bimonthly payment of $50,000 will be made to the owners. If the Property is put into production, the bimonthly payment will be increased to $175,000. Bullion River will continue to make the bimonthly payments until an aggregate $1,500,000 has been paid to the owners, which will include all payments including the initial $10,000 paid as a non-refundable deposit.

Tom LaBarge, an officer of both Wisconsin private corporations, states, "We are pleased to find a company with the experience of Bullion River to develop this Property, which we have owned for almost 25 years."

Peter M. Kuhn, CEO of Bullion River, states, "We are very excited with the potential this Property has in enabling Bullion River to become a gold producer as early as 2005. We are committed to a careful and thorough evaluation of the Project over the next several months. Our experience in working with California State and Federal authorities stemming from our North Fork Project will help us accelerate this project into production status."

About Bullion River Gold Corp.

Bullion River Gold Corp. is a mineral exploration company focusing on regions containing gold-silver deposits. The company's primary focus is the Great Basin in the Western United States and the Motherlode belt of California. Bullion River seeks projects that contain or have potential to contain high grades and large tonnage potential. Bullion River will also focus on projects that contain potential for mineralization concealed under post-mineral cover.

Approved by the Board of Directors:

BULLION RIVER GOLD CORP.

Per: /s/ Peter M. Kuhn

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  PETER M. KUHN
  President
  NR#04-16

Feel free to visit the Company's website at www.bullionriver.com or the U.S. Securities & Exchange Commission's website at www.sec.gov/ to review Bullion River's latest filings.

This release contains certain statements that are "forward-looking" statements (as the term is defined in the Private Securities Litigation Reform Act of 1995). Any such forward-looking statements are inherently speculative and are based on currently available information, operating plans and projections about future expectations and trends. As such, they are subject to numerous risks and uncertainties, such as general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations, and other factors over which Bullion River Gold Corp. has little or no control. Actual results and performance may be significantly different from expectations or trends expressed or implied by such forward-looking statements. Bullion River Gold Corp. expressly disclaims any obligation to update the statements contained in this release.