Columbia Yukon VBE-1 Voisey's Bay, Labrador Diamond Drill Program Updates.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Aug. 27, 1997-- Columbia Yukon Resources (Alberta Stock Exchange:CYR.) Columbia Yukon Resources Ltd. (the "Company") as operator and International CanAlaska Resources Ltd. ("ICA") announce that the planned nine hole, 13,500 metre (40,000 ft) exploration drilling program currently being conducted on mineral license VBE-1 is proceeding on schedule. The $3.3 million program on VBE-1, located contiguous with and due east of the Voisey s Bay nickel, copper, cobalt deposit in Labrador, is funded equally by Columbia Yukon Resources Ltd., International CanAlaska Resources Ltd. and Falconbridge Limited. Drilling progress to date is as follows:

DDH no.96-1, a continuation of a hole drilled in 1996 by Columbia Yukon, and International CanAlaska was completed at a depth of 1483 metres after intersecting leuconorite over the greater part of its length, with minor pyrrhotite and chalcopyrite noted at intervals in the core.

DDH no.97-2, was completed at 1501 metres. This hole tested an anorthositic sequence extending east west across the southern part of VBE-1. Minor sulphide mineralization was noted in the core.

DDH no.97-3, was collared approximately 400 metres to the west of DDH no.96-1 and also intersected leuconorite over most of its length. Disseminated and irregular patches of pyrrhotite and chalcopyrite are found associated with the margins of intercalated noritic units over the last 300 metres of the hole. These sulphide bearing intervals compose approximately 2 - 6 percent of the core and occur sporadically over core lengths of several metres. The participating partners elected to extend DDH no.97-3 beyond the 1500 metre point to further test this target and has now been completed at 1601 metres. This drill rig, now being available will be transported to a new target site in the south central zone of the VBE-1 property. Samples of core have been sawn and sent for analysis and petrographic description.

Following completion of three north south lines of magneto-telluric (MT) surveys, which defined distinctive conductors with a roughly east west alignment in the south central part of VBE-1 on Line 14.0 west and Line 0.00 (midway point of the property), a further MT survey was carried out which confirms results of the earlier survey. Two infill lines, 10.0 west and 6.0 west, were completed between Line 14.0 west and Line 0.0 west and extended to Line 5.0 east. Preliminary field analysis of the new data indicates an east west conductor extending for 1.9 kilometres originating at a depth of greater than 1000 metres.

DDH no.97-4, was recently collared on Line 14.0 west to investigate the source of the MT anomaly and has reached a depth of 742 metres.

DDH no.97-5, collared approximately 1200 metres north west of 97-4, currently at 510 metres, is testing a different structural block underlain by an anorthositie unit extending east west through the central part of VBE-1. Subsequent drill holes will be sited to test the geophysical targets delineated by the MT, down hole Pulse E.M. surveys or unique structural blocks.

ON BEHALF OF THE BOARD OF DIRECTORS

DANIEL B. EVANS, DIRECTOR -0- 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.

Daniel B. Evans, Director, 604/683-3070

604/683-2308 (FAX)

CDN 1-888-888-9122 / USA 1-888-888-9123

Website:

http//www.columbia-yukon.com/columbia-yukon/