Cerro Dorado, Inc. Starts New Work Seeking the Source of Gold in Beach Sands On Ipun Island, Chile.

Business Editors

SALT LAKE CITY--(BUSINESS WIRE)--April 26, 2000

Cerro Dorado, Inc. has started the next phase of work on its mining claims on Ipun Island, off the coast of Chile where in the past, large quantities of gold-bearing sands were discovered. Mr. Ralph Bonham, an acknowledged authority on placer gold evaluation and production, is responsible for the work. Accompanying Mr. Bonham is Paul Jones, Mining Engineer and Geologist, and Vice President of Mining for Medinah Gold, Inc.

Last year, Mr. Bonham conducted initial reconnaissance sampling of the streams and beaches of the uninhabited island, which is about 1,400 kms south of Chile's Capital City, Santiago, and 350 kms south of the port city of Puerto Montt.

Cerro Dorado owns a 60% interest in the mining claims covering most of Ipun Island, pursuant to a joint venture with Medinah Gold, Inc. as to 40%. The island is about 10 kms wide and 20 kms long and benefits from a mild, year-round operating climate. Historical records dating back to the early 1900s show that large quantities of gold-bearing sands have been discovered and tested on Ipun. In particular, a report by Thomas C. Earl dated December 1933, reported gold values of up to 1.734 grams per cubic yard form Henriquez Beach on the southeast part of the island.

Mr. Bonham's previous work on Ipun for Cerro Dorado, Inc. showed many significant gold values and, based on these encouraging results, a number of areas have been targeted for detailed trenching and sampling for placer gold. The objective of the current work is to locate commercial quantities of placer gold on the island and to bring it rapidly into production.

In addition, this new work will search for a possible local source of the placer gold on the island. Results are expected early in May 2000.

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

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.