Columbia Gold Mines - Report From North of 60.

VANCOUVER, British Columbia--(BUSINESS WIRE)--July 2, 1996-- COLUMBIA GOLD MINES (VSE:COB) reported today that the Fyre Lake program in the Finlayson Lake district of southeast Yukon is underway.

Facilities for a 25 man camp have been constructed and crews are on site. As part of the $2.7 million program budgeted for this season, linecutting, geophysical and geochemical surveys have commenced.

The program calls for two drill rigs to complete 10,000 metres of diamond drilling within the next three months. The first rig will arrive on the property this week and mobilization of the second rig is planned later in the month.

Initial drilling will be directed to the 3.5 kilometre-long Kona Zone. In the 1960's, 40 shallow, narrow diameter core holes, drilled within a 500 by 100 metre area of the Kona Zone indicated an open- ended flay lying polymetallic volcanogenic massive sulphide deposit. Average grades of 1 percent copper, 1 percent zinc and 0.7 grams per tonne gold were previously reported. Higher grades from surface sampling reached 2 percent copper and 6.2 grams gold over 15.5 metres. Additional zones comprised of mineralized float, geophysical and geochemical anomalies will also see drilling along a 7.5 kilometre-long trend south of the Kona Zone.

The 70 square kilometre, 292 claim Fyre Lake Property is located 30 kilometres south of Cominco's Kudz Ze Kayah deposit and 30 kilometres southwest of the Atna-Westmin Wolverine discovery.

Columbia Gold has approximately $1.0 million in hand and plans to raise an additional $3.0 million are in progress by way of sale of 3.0 million units through an exchange offering prospectus with Canaccord Capital Corporation acting as agent.

Columbia Gold may earn up to an 80 percent interest in the Fyre Lake Property by expending $6.0 million prior to December 1999. Welcome Opportunities Ltd. may then elect to arrange financing to further the property to production, at which time Welcome's interest would increase from 20 percent to 55 percent, and Columbia's interest would then be 45 percent carried and non-assessable.

Columbia Gold also plans preliminary exploration this season for additional properties that have been recently acquired in the Finlayson - Watson Lake district area. -0-

Columbia Gold Mines Ltd.      Symbol - COB (VSE senior board)
Shares Outstanding            9.0 million
Fully Diluted                 10.8 million
Trading Range (May - June)    CDN$0.91 - $1.44

ON BEHALF OF THE BOARD OF DIRECTORS

John S. Brock

The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this news release.

CONTACT: Columbia Gold Mines Ltd.

John S. Brock, 604/687-4951

604/687-4991 (Fax)