Campbell Resources Announces Transactions On Mexican and Panamanian Assets.

Business Editors

TORONTO--(BUSINESS WIRE)--Sept. 4, 2001

Campbell Resources (NYSE:CCH)(TSE:CCH.)

Option Agreement With Queenstake Resources Ltd.

Campbell Resources Inc. (NYSE:CCH) (TSE:CCH.) has granted a six month option to Queenstake Resources Ltd. ("Queenstake") (QRL-TSE) to acquire all of the shares of its Mexican subsidiary Oro de Sotula, S.A. de C. V. ("Oro").

Oro would provide to Queenstake, most of the equipment required for its Magistral gold project in Sinaloa, Mexico. Queenstake has announced today that development financing for the project has been secured and a production decision on Magistral is expected in about six months. Campbell will receive option payments of U.S.$25,000 per month for six months subject to a minimum of U.S.$75,000. Oro owns, and has operated in the past, the Santa Gertrudis gold mine in Sonora, Mexico. This operation was placed on a care and maintenance basis in 2000. The purchase price of Oro will be satisfied by two Notes totaling U.S.$2 million.

The first U.S.$1 million Note is contingently payable in tranches at certain milestone gold prices ($315, $330 and $350) that must be reached and sustained for 120 days before December 31, 2005. The second Note of U.S.$1 million will be credited under certain circumstances depending on the eventual aggregate cost of meeting the liabilities of Oro and the reclamation costs of Santa Gertrudis.

There are reported gold resources at Santa Gertrudis that require a higher than current gold price to be deemed economic. Queenstake will attempt to sell or seek a joint venture partner to develop these resources and if successful, Campbell will be entitled to 1/3 of any proceeds. Should Queenstake elect to resume production from the Santa Gertrudis property, Campbell Resources will receive a 1% NSR royalty from such production. Campbell has retained the right to enter into a joint venture or similar transaction on the deep drilling potential of the property during the option period.

Sale of Cerro Quema

Campbell has also closed in escrow, its previously reported sale of its Panamanian subsidiary, Minera Cerro Quema, S. A. which holds the Cerro Quema gold property. Campbell has retained a 9% net profits interest and will be released from its environmental and mining bonds by the purchaser. Final closing will occur on the receipt by Campbell of its bonds which have been replaced by the purchaser. This is expected by December 20, 2001.

These two transactions further Campbell's strategy announced in December, 2000 to focus on its gold and gold-copper mining properties in the Chibougamau region of Quebec and will enable Campbell to concentrate its efforts and resources on re-commencing operations at the Joe Mann Mine and bringing the Copper Rand Mine into production.

Forward-Looking Statements 

Certain information contained in this release contains "Forward-Looking Statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and is subject to certain risks and uncertainties, including those "Risk Factors" set forth in the Campbell's current Annual Report on Form 10-K for the year ended December 31, 2000. Such factors include, but are not limited to: differences between estimated and actual mineral reserves and resources; changes to exploration, development and mining plans due to prudent reaction of management to ongoing exploration results, engineering and financial concerns; and fluctuations in the gold price which affect the profitability and mineral reserves and resources of Campbell. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Campbell undertakes no obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect unanticipated events or developments.