Consolidated Nevada Goldfields announces second-quarter results.

DENVER--(BUSINESS WIRE)--Jan. 30, 1996--

 CONSOLIDATED NEVADA GOLDFIELDS ANNOUNCES SECOND QUARTER RESULTS

                           Three Months Ended    Six Months Ended
                                December 31,         December 31,
                               1995      1994      1995      1994

Ounces of Gold Sold          10,095     5,881    14,955    16,167
Revenue (000s)              $ 3,210    $2,383   $ 4,907    $6,499
Net (loss) (000s)          $(1,239)  $  (593)  $(1,466)  $  (528)
Net (loss) per Share      $  (0.03)  $ (0.01) $  (0.03)  $ (0.01)

Consolidated Nevada Goldfields Corporation announced that during the second quarter ended December 31, 1995, it reported a net loss of US$1,239,000 or US$0.03 per share on revenues of US$3,210,000 from the sale of 10,095 ounces of gold compared to a loss of US$593,000 or US$0.01 per share on revenues of US$2,383,000 from the sale of 5,881 ounces of gold for the second quarter of last year. The loss was primarily attributable to start up costs for the Company's Nixon Fork gold mine in Alaska. For the six months ended December 31, 1995, the Company reported a net loss of US$1,466,000 or US$0.03 per share on revenues of US$4,907,000 from the sale of 14,955 ounces of gold compared to a net loss of US$528,000 or US$0.01 per share on revenue of US$6,499,000 from the sale of 16,167 ounces of gold for the prior year.

NIXON FORK MINE

The Nixon Fork mine completed construction in mid-October. The mine has experienced a slower than anticipated start up because of equipment run-in difficulties and adverse weather conditions. Sales for the quarter were 6,312 ounces of gold. This initial delay in full production contributed to the loss for the quarter. Despite the slow start up during October and November, the mine produced 6,455 ounces of gold during the month of December at a cash cost of $145 per ounce. This production rate is approximately 80% of forecast for the month and the cash costs were within 2% of the forecast level of $142 per ounce. The mine has reported significantly higher grade than projected. The average head grade of the mine was more than 2.6 ounces of gold per ton during the quarter compared to projected grades of 2.1 ounces of gold per ton. The Company intends to increase the production at the mine during the third quarter to design capacity.

The first phase of underground exploration and development drilling at Nixon Fork has commenced for the 1996 season. Second phase surface diamond drilling is planned to begin during May of 1996. The exploration program will first involve detailed drilling in and around the current area of operations in order to increase the immediately mineable reserve. Exploration will then expand out to include other targets on the Company's holdings in the district including important targets on the Company's newly acquired 46,000 acre Doyon lease. The Company plans to spend $2 million on exploration at Nixon Fork during calendar 1996.

AURORA MINE

During the quarter, as forecast, production at the Aurora mine tapered off relative to prior months. Aurora sold 3,782 ounces of gold during the quarter compared to 4,074 ounces during the second quarter of fiscal 1995. Year to date cash costs per ounce of gold were $266 per ounce compared to forecast cash costs of $279 per ounce of gold.

The Company has begun the first phase of an intensive exploration campaign at Aurora with one diamond drill and one reverse circulation drill in operation at this time. This first phase of exploration focuses on the definition drilling and expansion of the newly discovered Martinez deposit which is immediately adjacent to, and along strike from, the current open pit operation at Aurora. The Martinez deposit is a broadly disseminated stockwork type gold deposit which currently contains a resource of 1.54 million tons grading 0.055 ounces of gold per ton (84,500 ounces of gold). The deposit is open to expansion along strike and down-dip. The Company has a phased exploration program scheduled during calendar 1996, with the activities of each phase dependent upon the results of each preceding phase; all within an overall budgeted plan of $1.65 million.

BARITE HILL

Barite Hill sold 122 ounces of gold during the quarter. The gold was extracted from residual process solutions as the mine and heap leach are being reclaimed. At this time, the remnant heap at Barite Hill is approximately 70% recontoured and the process of sealing the heap with impermeable clay has begun. The Barite Hill mine is expected to be substantially reclaimed by year end.

CORPORATE

During the quarter, the Company successfully raised the maximum amount of Cdn$9,504,000 of an international offering of units, each unit consisting of one common share and one-half of a common share purchase warrant. The offering was completed on December 21, 1995 and the funds will be utilized to accelerate the Company's exploration and development programs for its Nixon Fork and Aurora mines and for working capital.

Consolidated Nevada Goldfields Corporation is a gold mining and exploration company which operates the Aurora mine in Nevada, the Nixon Fork mine in Alaska, and is reclaiming its Barite Hill mine in South Carolina. The CompanyFs 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 Hoyle, 303/296-3200