Columbia Yukon Resources: Voisey's Bay, Labrador Gold Mineralization Identified on VBE-2.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Aug. 21, 1997--Columbia Yukon Resources (Alberta Stock Exchange:CYR) Columbia Yukon Resources Ltd. (the "Company") as operator, along with its joint venture partner International CanAlaska Resources Ltd. report completion of a nine hole, 1,000 metre diamond drill program on mineral license VBE-2 located 9 kilometers south of the Voisey's Bay copper/nickel deposit.

The drill program was designed to test significant gold values (up to 18.9 g/t (0.55 ozs/s.ton) gold) hosted by a north south striking graphitic gneiss, discovered in outcrop during 1996 field work. The current drill program tested the prospective gneiss unit which has a strike coincident E.M. conductor.

Assay results from six holes received to date indicate that anomalous gold values occur over the entire 275 metre (900 feet) tested strike length and down the dip of the gneiss unit to at least 60 metres (200 feet). The results indicate that strongly anomalous gold values are consistently present in the gneiss. The highest grades occur principally in a one to two metre width adjacent to the hanging wall of the gneiss where gold values average about 3 gms/t (0.1 oz/s.ton) gold over this interval. -0-

ASSAY SUMMARY:

  Drill       Intercept    Thickness   Gold Grade
  Hole          Metres       Metres       g/t
--------     -----------   ---------   ----------
VBE-2 #1     47.58-49.85     2.28         3.8
VBE-2 #2     55.91-56.82     0.91         3.6
VBE-2 #3     49.52-50.94     1.42         2.6
VBE-2 #4     48.09-49.36     1.27         7.4
VBE-2 #5     65.82-66.97     1.15         2.4
VBE-2 #6     56.24-57.91     1.67         3.5

Holes VBE-2 #7, 8, 9, are pending assay. Replicate fire assays of the above samples indicate good comparison of the values. The samples are being subjected to duplicate assays by a second registered assay laboratory; any significant variation will be repeated.

The current drill program has shown the gold mineralization is present in a sulphide-rich, graphitic gneiss unit which represents an altered iron formation, a common host for some of the larger economic gold deposits. The drilling demonstrates that the mineralization extends over a minimum strike length of 275 metres (900 feet) and is open to the north and south and to depth. Hole #4 with 7.4 g/t (0.2 oz/s. ton) gold over 1.27 metres demonstrates the depth extension of the mineralization from the surface discovery where gold values of 18.9 g/t 0.55 ozs/s. ton) were returned across a width of 1 metre (3.3 feet). The joint venture partners will complete a full evaluation of these results prior to the next phase of work on the project.

ON BEHALF OF THE BOARD OF DIRECTORS

MICHAEL S. GUSTAVSON, DIRECTOR

-0-

Note to Editors: The Alberta Stock Exchange nor any other regulatory body has reviewed this news release and therefore do not accept responsibility for the adequacy or accuracy of this release.

CONTACT: Columbia Yukon Resources Ltd.

Michael S. Gustavson, 604/683-3070

Fax: [phone]

888/888-9122 (CDN)

888/888-9123 (USA)