CROESUS CAPITAL MANAGEMENT CORP. ("CROESUS") AGREES TO ACQUIRE CONTROL OF PHRYGIAN MINING CORPORATION ("PHRYGIAN") FROM MIDAS CAPITAL CORPORATION ("MIDAS").

VANCOUVER, BC--(BUSINESS WIRE)--AUGUST 29, 1995--PHRYGIAN MINING CORP. (VSE:PHG) Phrygian directors and management are pleased to announce that Croesus, a New York based global emerging market fund, has reached an agreement with Midas on July 26, 1995 whereby Croesus would acquire, via a private transaction, control of approximately 49 percent of the voting shares of Phrygian, representing 2,083,452 trading shares subject to a one year hold period and 1,897,194 escrow shares, the release of which is subject to certain financial performance criteria over a six year period.

Midas retains 2,000,000 trading shares and a 3 percent NSR (net smelter return) on gold properties in Kyrgyzstan. This transaction remains subject to regulatory approval.

The transaction with Croesus is consistent with Midas' strategy of developing business opportunities, and then attracting endorsement and support from a significant financing partner and an experienced aggressive management team that can accelerate the growth in shareholder value.

On July 21, 1995, three new representatives of Croesus were appointed to the Phrygian Board of Directors - Mr. Michael Beck, Managing Director of Rothschild Natural Resources Inc.; Mr. Tom Griffis, President of Sikaman Gold Resources Ltd., Toronto, Ontario; and Mr. James Taylor, who also assumed the role of President of Phrygian on August 1, 1995. Mr. Edward Badida was also appointed as Chief Financial Officer.

The Croesus fund has reviewed both the Sierra Leone diamond and Kyrgystan gold properties of Phrygian. On the basis of this review, Croesus agreed to conclude the transaction with Midas. Midas will retain three directorships of a total of six. Additionally, the Chairman of Midas, Dr. Charles McMillan, will serve as Chairman of Phrygian and will be particularly active in developing Phrygian's interest in Central Asia. Both Dr. McMillan and Croesus management have extensive experience and relationships in Central Asia and will continue to aggressively expand Phrygian's resource base in that region.

Phrygian Mining Corporation is a Toronto-based company listed on the Vancouver Stock Exchange. Its asset base consists of (1) an option, acquired June 23, 1995, on Kyrgyzstan gold concessions with estimated exploitable reserves of 15.9 million tonnes containing an average gold content of 4.87 grams per tonne (77433 kg or 2.49 million troy ounces); (2) diamond and gold assets in Sierra Leone, West Africa that were the basis of the reverse take over transaction and are currently the subject of advanced joint venture negotiations with a global mining company capable of bringing such projects into production; and (3) gold properties in British Columbia known as the Zeballos property and Tofino property, both of which have histories of production.

The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

CONTACT: Phrygian Mining Corporation

416/214-0655 REPEATS: New York 212-575-8822 or 800-221-2462; Boston 617-330-5311 or

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