Canuc Raises $12 Million And Releases Ecuadorian Assay Results.

TORONTO--(BUSINESS WIRE)--Aug. 9, 1996--CANUC RESOURCES CORP.(CANADIAN DEALING NETWORK: CANC ) Canuc Resources Corporation announced today the closing of its previously announced private placement of up to 4,000,000 Special Warrants at a price of $3.00 each for total proceeds of $12,000,000 through Canaccord Capital Corporation, as agent of Canuc.

Each Special Warrant will be exchangeable for one Common Share and one-half of one Share Purchase Warrant of Canuc. If a receipt for a final prospectus qualifying the shares and Share Purchase Warrants issuable upon exercise of the Special Warrants is not issued within 150 days of closing, then each Special Warrant will be exchangeable for 1.1 Common Share and 0.55 of a Share Purchase Warrant.

Each full Share Purchase will entitle the holder to purchase one Common Share of Canuc at a price of $4.00 per share at any time during the 12-month period following closing.

Of the gross proceeds of the offering, $5,640,000 was released to Canuc on closing and the remaining proceeds will be released upon issue of a receipt for the prospectus and receipt of shareholder approval of the portion of the private placement in excess of 1,880,000 Common Shares. In the event that shareholder approval is not obtained, the escrowed proceeds will be used to repurchase for cancellation 2,120,000 Special Warrants.

With regard to the Nambija gold project, to date, assays have been received on 509 vertical channel samples taken from crosscut, drifts, stope walls, ; pillars and declines within the Gold Star Mine. Subsequent to our earlier press release of July 15th, an additional 156 samples taken from the area of the main mine workings gave a bulk grade of 6.41 grams gold per tonne (0.19 ounces per ton). Combining these results with the 123 previously reported assays yields an overall bulk average grade for the main mine workings of 11.54 grams per tonne (0.33 ounces per ton). Using a cut off grade of one gram per tonne yields an average grade of 14.42 grams per tonne (0.42 ounces per ton).

In addition to the above, some 230 assays taken from areas immediately peripheral to the main workings gave grades ranging from less than 0.03 grams per tonne to 39.72 grams per tonnne. While the majority of these samples returned results less than one gram per tonne, they confirm wide spread mineralization that could be considered amenable for open pit mining methods.

While the results to date are significant, the Corporation does not feel that it has sufficient information to calculate reserves. However, it is now obvious that the potential size of the deposit is larger than the original 5.0 million tonnes first indicated in the independent consulting engineers report dated April 1996. The average grade of this larger deposit will be determined by a more detailed sampling program to be undertaken in the future.

There are a further 200 samples currently en route to the assay lab and these will be reported on as soon as available. On completion of the on-going underground and surface sampling and geological mapping, a program of diamond drilling and tunneling will be initiated. The principal purpose of this work shall be to determine geological ore controls and the limits of the mineralization.

Canuc is a reporting issuer in Ontario and its common shares are traded on Canadian Dealing Network ("CDN") Symbol - CANC

CONTACT: Canuc Resources Corporation

President, 416/861-1422, 416/861-1478 (Fax)