Columbia Yukon Resources - Conversion of Debenture.

VANCOUVER, British Columbia--(BUSINESS WIRE)--July 30, 1996--COLUMBIA YUKON RESOURCES (Alberta Stock Exchange:CYR) Columbia Yukon Resources Ltd. ("Columbia Yukon") wishes to report that on July 29, 1996, Waterfront Capital Corporation ("Waterfront") exercised its option to convert a $200,000 Floating Charge Convertible Redeemable Debenture (the "Debenture") issued in its favour by Columbia Yukon into 2,000,000 units ("Units") at a conversion price of $0.10 per Unit. Each Unit consists of one (1) common share and one (1) share purchase warrant ("Warrant") of Columbia Yukon. Each Warrant entitles Waterfront to purchase an additional common share at $0.15 per share on or before July 29, 1998.

Had Waterfront not exercised its option to convert, the Debenture would have been due on November 09, 1996.

As a result of the conversion of the Debenture and the issuance of Units, Waterfront beneficially holds 2,904,200 shares of Columbia Yukon, representing 17.9 percent of the issued and outstanding shares of Columbia Yukon. In the event Waterfront exercises all of the Warrants, Waterfront will hold 4,904,200 shares, representing 26.9 percent of the issued and outstanding shares of Columbia Yukon.

Waterfront currently does not have any intention of increasing its beneficial ownership of shares of Columbia Yukon in the immediate future.

Columbia Yukon and Waterfront are both listed on The Alberta Stock Exchange.

For further information or clarification concerning the above, please contact Columbia Yukon Resources Ltd. at [phone]. -0-

NOTE TO EDITORS: The Alberta Stock Exchange nor any other exchange or regulatory body has reviewed this news release and therefore do not accept responsibility for the adequacy or accuracy of the information contained herein.

CONTACT: Columbia Yukon Resources Ltd.

Douglas L. Mason, 604/683-3070