Consolidated Nevada Goldfields Corp. announces increased reserves for Nixon Fork and Aurora.

DENVER--(BUSINESS WIRE)--Dec. 13, 1994--Consolidated Nevada Goldfields Corp. Tuesday announced that its successful 1994 exploration program expanded the reserves for its Nixon Fork project and Aurora mine.

Nixon Fork Mineable Reserves Increased by 29,730 Ounces of Gold (22%)

At the company's Nixon Fork project in Alaska, approximately 25,000 feet of diamond drilling and 3,000 feet of underground excavations were performed this season. The drilling and related underground mining resulted in the discovery of six new areas of mineralization and an increase in mineable reserves:

                            Mineable               Possible
                         Proven/Probable          (Tons/opt)
                           (Tons/opt)

Crystal/Garnet         36,560 at 1.91 opt      5,400 at 1.15 opt
Mystery                68,660 at 1.20 opt     20,870 at 1.05 opt
New Zones              17,329 at 0.61 opt     12,890 at 0.73 opt
Total                 122,549 at 1.33 opt     39,160 at 0.96 opt
Total ounces gold        163,030 ounces          37,600 ounces

The reserve calculation was performed by third-party consultant Derry, Michener, Booth and Wahl (DMBW), of Denver. DMBW also provided the reserve calculation for the December 1993 Pincock, Allen & Holt (PAH) feasibility study for Nixon Fork. This new reserve calculation results in a net increase of 29,730 mineable ounces at Nixon Fork after a net decrease in mineable grade from 1.42 opt to 1.33 opt when compared to the December 1993 study when compared to previously reported reserves.

The decrease in grade and increase in ounces is partly due to more conservative assumptions regarding mining dilution and because of recovery factors.

All six of the newly discovered areas at the Recreation/High Grade, J-5A and Southern Cross are open-ended and hold the promise of further reserves. These areas will be the subject of future drilling when exploration resumes on the property in 1995.

Geoffrey Hoyl, president of Nevada Goldfields, said, "The opening of six new areas of mineralization and the expansion in ore reserves strengthens our belief that there is good potential for continuing reserve increases at Nixon Fork Nixon Fork once mining operations have commenced."

These new reserve data are being integrated by PAH into an updated feasibility study due to be completed in the third week of December. The updated feasibility study will include new and more precise technical and cost information derived from new, extensive metallurgical testing, process design, contract bids, etc. The company has completed its own internal analysis of these new parameters and concluded that the projected profitability of the project has been dramatically enhanced when compared to the 1993 feasibility study. The company is currently exploring various options to finance the incremental capital required to take the project into production in September 1995. A final estimate of the amount of additional capital required will be provided as part of the updated PAH study.

Aurora Reserves Increased by 9,500 Ounces of Gold (32%)

In a separate development, as of Dec. 1, 1994, the company has completed and adopted a revised mine plan at its open-pit/ underground Aurora gold mine near Hawthorne, Nev. The mine plan is designed to take advantage of newly discovered additional mineable reserves on east-trending extensions of the Juniata vein which is currently being mined at Aurora. The new mine plan has resulted in an increase in mineable reserves at Aurora of 80,000 tons at 0.12 opt or 9,500 additional mineable ounces of gold. Total mineable reserves for the project now stand at 316,000 tons at 0.120 opt for a total of 38,900 mineable ounces.

In an effort to continue to extend the Juniata vein, the company is drilling widely spaced holes along the strike of the vein to the east. Assays from the most distant of these holes have just been received. Hole No. C9555 was drilled 700 feet to the east of the currently defined extent of the Juniata vein and hit the vein where it was projected. The hole intersected 32 feet of vein mineralization grading 0.23 opt. The average mined grade at Aurora is 0.12 opt. Hole No. C9555 has opened up substantial new exploration terrain at Aurora. A follow-up drilling program has been commenced.

Annual General Meeting

Consolidated Nevada Goldfields Corp. held its annual general meeting on Dec. 5, 1994, and re-elected seven of its standing board members. Peter Marrone was one of the directors re-elected to the board. Marrone is a securities lawyer in Canada and has lectured on a number of Canadian securities law topics. He serves as a director of a number of Canadian public companies. He is a consulting partner with Cassels Brock & Blackwell in Toronto, Ontario, and serves as the company's Canadian counsel.

The company is also pleased to announce the appointment of James R. Maronick as vice president of finance. Maronick has over 17 years experience in finance and accounting. Prior to joining the company, Maronick was the chief financial officer with Analytica Inc.

Consolidated Nevada Goldfields Corp. is a gold mining and exploration company which operates the Aurora mine in Nevada, the Barite Hill mine in South Carolina, and the Nixon Fork development project in Alaska. 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., Denver

Geoffrey Hoyl, 303/296-3200