Cerro Dorado, Inc. Announces That Encouraging Results Justify Drilling Program At Milagro Property, Chile.

Business Editors

SALT LAKE CITY, Utah--(BUSINESS WIRE)--April 11, 2000

Cerro Dorado, Inc. announces that the results of a first phase of mapping and sampling on the Milagro property have established the presence of strong gold mineralization in several areas. These results confirm management's belief that the Milagro property and the surrounding area have the potential to host a large, economically viable gold deposit. Consequently, the Company plans to commence a drilling program before the end of April 2000.

It is of particular significance that this strong mineralization is not confined to the north-south oriented fault zones that cross the property but has also been shown to extend laterally into the adjacent limestone beds forming flat lying bodies known as "mantos".

A summary of these results is as follows:

OCCURRENCE                            GOLD GRADE G/T   INTERVAL
                                                       METERS

N-S Fault in limestone                2.55             18
or                                    4.2              10
Grab Sample, N-S Fault                5.53             Grab
Grab Sample, N-S Fault                6.41             Grab
Manto Mineralization in limestone     2.84             9
or                                    6.05             4
Manto Mineralization in limestone     2.57             2
Manto Mineralization in limestone     1.37             3
Manto Mineralization in limestone     2.57             Grab
Manto Mineralization in limestone     3.47             Grab
Manto Mineralization in limestone     2.38             Grab
Manto Mineralization in limestone     2.33             Grab
Manto Mineralization in limestone     1.83             Grab

This sampling and mapping work has confirmed that areas exploited at surface by small miners are comprised of vertically oriented veins and adjacent mantos. The veins vary in grade from 3 to 10 g/t gold over widths of 3 to 10 meters and the adjacent mantos have gold grades from 1 to 6 g/t. This work has also shown that the manto mineralization may be up to 150 meters wide where several veins have intersected prospective limestone beds. The thickness of the gold mineralized mantos has not yet been determined. Gold mineralization in the north-south veins has observable strike lengths ranging from 500 to 1,000 meters and is closely related to regional faults that have possible additional strike lengths of up to 2,000 meters under shallow gravel cover.

Cerro Dorado, Inc. has an option agreement to earn a 70% interest in the Milagro property by completing a positive feasibility study on the property. The property is located at low altitude some 65 kilometers south of the town of Copiap in Region III of northern Chile.

In another matter, the Company has decided not to continue with the option to earn an interest in the Resguardo property, which is also located in northern Chile.

Cerro Dorado, Inc. is a junior exploration company specializing in gold exploration and development in Chile.

On behalf of the Board of Directors

Per: Richard W. Cahoon, President

For further information, contact Investor Relations at [phone] or visit the website at www.cerrodorado.com.

Note: This News Release may contain certain "forward-looking statements" within the meaning of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Cerro Dorado, Inc., are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future could differ materially from those anticipate in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed under the heading "Risk Factors" and elsewhere in documents filed from time to time with the United States Securities and Exchange Commission and other regulatory authorities.