Chief Consolidated Mining Announces Tentative Agreement with US EPA.

Business Editors/Environment Writers

EUREKA, Utah--(BUSINESS WIRE)--Dec. 22, 2003

Chief Consolidated Mining Company (OTC:CFCM) today announced that it has entered into a proposed Consent Decree with the United States Environmental Protection Agency (EPA) which, if approved by the Court, would settle the litigation brought by the EPA in connection with the Eureka Mills Superfund Site located in Juab County, Utah. The Consent Decree requires Chief to make certain In Kind Contributions of soil and other fill material from selected properties as needed in connection with the EPA's Remedial Action, as well as possible future payments from the sale of Chief's real estate as well as a participation in future Chief's future profits to reimburse the EPA for Response Costs associated with the Site.

The Consent Decree would become effective only after review and approval by senior EPA, Department of Justice and Utah Department of Environmental Quality officials. Following such approval, a copy of the document will be filed with the Court and published in the Federal Register for thirty days. Upon review of any comments received the United States may respond and move the Court to enter the Consent Decree. Chief has entered into the Consent Decree without admitting any liability arising out of the transactions or occurrences alleged by the EPA in its complaint.

Upon acceptance of this Decree by the Court, Chief will consider alternatives to recapitalize the Company, pay down trade debt pursuant to agreements reached with certain creditors, and potentially resume gold and silver production either on its own or in a joint venture with another operating mining company.