Canyon Resources reports second-quarter results.

GOLDEN, Colo.--(BUSINESS WIRE)--Aug. 12, 1996--Canyon Resources Corp. (NASDAQ:CYNR), a Colorado-based mining company, today announced a second-quarter loss of $999,700, or 3 cents per share, on revenues of $1,303,100 for the three months ended June 30, 1996, and a net loss of $1,827,900, or 6 cents per share, on revenues of $2,447,200 for the first half of 1996.

This compares to a net loss of $1,351,100, or 5 cents per share, on revenues of $2,158,100 during the second quarter of 1995 and a net loss of $1,999,000, or 8 cents per share, on revenues of $5,848,000 during the first six months of 1995. The current periods reflect an overall improvement due to lower non-project related exploration expenses and higher interest income. The lower revenues reflect a decline in gold production at the Kendall Mine in Montana as the pads are rinsed in preparation for final reclamation.

The company had $23.1 million in cash at June 30, 1996, including $10.5 million dedicated for Briggs Mine development costs. During the second quarter, the company spent $13.2 million on capital programs, principally on mine development and construction of the Briggs Mine in California.

In July 1996, the company reduced $21.1 million of debt through redemption of its convertible notes by issuing 6,346,000 shares of common stock.

By the end of July 1996, construction of the Briggs Mine had been completed, and mining, crushing, and loading of crushed ore on the leach pad were underway. The mine was constructed within its $28 million budget and on time. Initial gold production is anticipated in September or October 1996 at an annual rate of 75,000 ounces per year.

"Canyon's financials will improve significantly when the Briggs Mine commences gold production this fall. Its 75,000 ounces of gold production per year will bring Canyon to a higher level of gold production and revenues than ever before," said Richard H. De Voto, president.

Canyon produces gold and silver from the Kendall Mine in Montana and industrial minerals (diatomite) from a mine/plant complex in Nevada. In addition to development of the Briggs Mine in California, the company is in the permitting and development stage at the 8.2 million-ounce McDonald gold project in Montana. -0-

                Canyon Resources Corp. & Subsidiaries
           Summarized Financial and Production Information
                            (Unaudited)

BALANCE SHEET                           June 30, 1996   Dec. 31, 1995
Assets
Current assets                           $25,374,900     $28,654,800
Property & equipment, net                 61,098,600      38,524,400
Non-current assets                         2,641,600       5,245,000
Total assets                             $89,115,100     $72,424,200
Liabilities and Stockholders' Equity
Current liabilities                      $ 5,206,800     $ 2,867,400
Notes payable -- long term                48,905,600      47,371,800
Other non-current liabilities              2,215,800       2,114,500
Stockholders' equity                      32,786,900      20,070,500
Total liabilities & stockholders'
  equity                                 $89,115,100     $72,424,200

                        Three Months Ended        Six Months Ended
                             June 30,                 June 30,
STATEMENT OF OPERATIONS 1996          1995        1996         1995

Revenue              $1,303,100    $2,158,100   $2,447,200   $5,848,000
Cost of sales         1,234,400     1,809,900    2,146,200    4,464,400
Depreciation, depletion
  & amortization         59,700       164,500      120,000      461,900
Selling, general and
  administrative        927,500       797,200    1,739,000    1,849,800
Exploration costs and
  abandonments           92,600       463,300      222,100      724,800
Other (income) expenses,
  net                   (11,400)      274,300       47,800      346,100
Net loss              $(999,700)  ($1,351,100) ($1,827,900) ($1,999,000)

Net loss per share       ($0.03)       ($0.05)      ($0.06)      ($0.08)
Weighted average shares
  outstanding        30,872,700    25,650,500   29,072,300   25,604,600

CASH FLOW
Cash and cash
  equivalents,
  beginning of
  period            $11,241,200   $12,507,600   $1,893,800  $13,280,100
Net cash used
  in operating
  activities         (1,751,700)   (1,381,100)  (2,558,500)    (810,700)
Purchases of
  property and
  equipment         (13,192,200)   (2,191,100) (21,075,500)  (3,620,500)
Proceeds from
  asset sales and
  other activities       20,000        34,500       25,300      344,500
Proceeds from loans  11,136,000            --   17,853,200           --
Issuance of stock,
  net                 2,967,900        12,200   14,444,200       12,200
Payments on debt and
  other obligations    (189,100)     (108,700)    (350,400)    (332,200)
Cash and cash
  equivalents, end
  of period         $10,232,100    $8,873,400  $10,232,100   $8,873,400

PRODUCTION DATA -- Kendall Mine

Gold production (oz)      1,234         3,795        2,375       11,511
Silver production (oz)      732         1,327        1,332        5,884
Total operating costs
  per ounce of gold/a      $725          $408         $621         $325
Average realized price
  per ounce of gold        $387          $392         $396         $387

/a  Includes royalty, severance and property taxes and reclamation
    reserve.

CONTACT: Canyon Resources Corp., Golden

Cheryl A. Martin or Richard T. Phillips, 303/278-8464