CaribGold Resources Inc. Announces Shareholder Rights Plan.

TORONTO--(BUSINESS WIRE)--August 17, 1999--

CaribGold Resources Inc. (the "Corporation") (TSE-CG) announced today the adoption by its Board of Directors of a Shareholder Rights Plan (the "Plan"), similar to those adopted by many other Canadian corporations.

The Corporation is concerned that current legislation does not provide sufficient time for the Board and shareholders of the Corporation to property evaluate a bid or pursue alternatives with a view to maximizing shareholder value. The Plan seeks to ensure that all shareholders of the Corporation have an equal opportunity to participate in the benefits of a takeover bid.

The Plan does not attempt to discourage bids. It allows a potential bidder to make a "permitted bid" directly to the shareholders of the Corporation without the prior approval of the Board. Such permitted bid must be made to all shareholders and must remain open for a minimum period of 45 days after the date of the bid and for a further period of 10 business days after the offeror publicly announces that the shares deposited constitute more than 50% of the outstanding common shares held by independent shareholders. The Plan also allows for a "competing permitted bid" to be made while the permitted bid is in existence.

To implement the Plan, the Board of Directors of the Corporation has authorized the issue of one Right in respect of each outstanding common share of the Corporation, to holders of record at 5:00 p.m. (Toronto time) on August 17, 1999. For administrative convenience the Rights will trade with the common shares and be represented by the certificates representing common shares.

The Plan is effective immediately, subject to regulatory and shareholder approval. The Plan will expire at the conclusion of the first annual meeting of shareholders following the third anniversary of the date of the Plan, unless reconfirmed at or prior to that meeting by shareholders, in which case the Plan will expire on the sixth anniversary of the date of the Plan.

Neither the Board nor management of the Corporation is aware of any pending or threatened takeover bid for the Corporation.

The Corporation has an active gold exploration project in the Republic of Cuba and earlier this year acquired a base metal prospect in the Lac Evans region of the Province of Quebec. Line cutting and ground geophysics are currently underway on the Lac Evans prospect in preparation for a late summer diamond drilling program. The Corporation has also recently made a small equity investment in a private Canadian corporation which holds rights to certain proprietary processes for the treatment of mining waste products. The Corporation is currently conducting further due diligence investigations on this company with a view to making a further investment in, or undertaking a business combination with, this company. Management of the Corporation believes that the adoption of the Plan will enhance the Corporation's ability to continue to pursue these initiatives.