Consolidated Nevada Goldfields Corp. Signs Electra Gold Acquisition.

DENVER--(BUSINESS WIRE)--Sept. 2, 1997--Consolidated Nevada Goldfields Corporation (CNGC) announced today that it has signed a definitive agreement with Electra Gold Limited (EGL) and its wholly owned subsidiaries, Electra Mining Corporation and Minerex Resources (US) Inc. (The Subsidiaries), to purchase certain patented and unpatented mineral claims in and around CNGC's Aurora gold mine, located 28 miles southwest of Hawthorne, Nevada.

The purchase price is US$2 million, payable US$500,000 in cash and US$1.5 million in shares of CNGC. Closing is scheduled to take place on September 4, 1997.

Under the agreement, the Subsidiaries will keep their respective interests in the heap-leach operations. In addition, EGL and the Subsidiaries will retain responsibility for the reclamation of the heaps as well as the mining and processing operations.

Alex Bissett, President and CEO of CNGC, stated that the purchase of the Electra property would add more than 150,000 ounces of gold reserves to its Aurora operation. This new reserve, when added to the existing Aurora reserve, would be sufficient to justify increasing the current annual production level at Aurora from approximately 13,000 ounces of gold to 25,000 to 30,000 ounces of gold for at least seven years.

Consolidated Nevada Goldfields Corporation is a Denver-based multinational mining company with six producing mining properties and over 1,300 employees. Upon the completion of the purchase of the Electra property, the company reserves will include over 700,000 ounces of gold, 51 million ounces of silver, and 38 million pounds of copper. The Company trades on the Toronto exchange under the symbol KNV, on the NASDAQ under the symbol KNVCF, and on the Stuttgart, Frankfurt, and Berlin exchanges under the symbol CNV.

CONTACT: Consolidated Nevada Goldfields Corp., Denver

Shelley Thompson, [phone]