Consolidated Nevada Goldfields Corp. Announces Underwriting Agreement to Issue 21 Million Special Warrants.

DENVER--(BUSINESS WIRE)--Sept. 26, 1996--Consolidated Nevada Goldfields Corp. (CNGC), announced today that it has entered into an underwriting agreement with a syndicate of underwriters to raise C$25,200,000 through the issuance of 21,000,000 special warrants at a price of C$1.20 per special warrant.

In addition, the underwriters have an option to sell an additional 3,000,000 special warrants on the same terms and conditions. Closing of the offering will occur concurrently with the anticipated closing of CNGC's acquisition from Grupo Real del Monte, S.A. de C.V. (GRDM) of four operating mines in Mexico. The closing is expected to occur on or about Oct. 9, 1996.

The special warrants will be exercisable, without payment of any additional consideration, into separable units, each unit consisting of one common share of CNGC and one half common share purchase warrant of CNGC. Each whole purchase warrant will entitle the holder to purchase one common share of CNGC at an exercise price of C$1.30 at any time up to and including the first anniversary of the closing of the offering.

The special warrants, purchase warrants and common shares to be issued upon exercise of the special warrants and purchase warrants have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

Consolidated Nevada Goldfields Corp. is a gold mining and exploration company which operates the Nixon Fork mine in Alaska, the Aurora mine in Nevada, and is reclaiming its Barite Hill mine in South Carolina. The Company's common shares trade on the Toronto Stock Exchange under the symbol KNV, on NASDAQ under the symbol KNVCF, and on the Stuttgart exchange in Germany under the symbol CNV-SG.

CONTACT: Consolidated Nevada Goldfields Corp.

Geoffrey Hoyl, 303/296-3200