Consolidated Nevada Goldfields Corporation Closes on Electra Acquisition.

DENVER--(BUSINESS WIRE)--Sept. 18, 1997--Consolidated Nevada Goldfields Corporation (CNGC) announced today it has finalized and closed the agreement with Electra Gold Limited (EGL) and its subsidiaries, to acquire patented and unpatented mineral claims in and around CNGC's Aurora project, located 28 miles southwest of Hawthorne, Nevada.

The purchase price was US$2 million, payable US $500,000 in cash and US$1.5 million in shares of CNGC.

The acquisition has added 180,000 ounces of gold to CNGC reserves, resulting in total CNGC gold-reserve holdings of 740,000 ounces. The Company has completed a feasibility study, with positive results, of expanding plant operations at Aurora to increase mine and plant production to 700 tonnes per day. The Electra acquisition, in conjunction with planned plant expansion, would raise the production level at Aurora from 13,000 ounces of gold to more than 25,000 ounces of gold per year, while increasing the mine life to at least seven years.

Consolidated Nevada Goldfields Corporation is a Denver-based, international mining company with six producing mining properties and over 1,300 employees. The Company reserves include 740,000 ounces of gold, 51 million ounces of silver, and 38 million pounds of copper. The Company shares trade 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.

Shelley Thompson, [phone]