Consolidated Pine Channel Gold Corp. Announces Update on Recent Activities.

VANCOUVER, British Columbia--(BUSINESS WIRE)--March 6, 1998--Dale W. Hoffman, President of Consolidated Pine Channel Gold Corp. (VSE:KPG.) (the "Company") is pleased to report on various aspects of the Company's recent activities, as follows:

SASKATCHEWAN URANIUM PROSPECTS

Area 1 - Pine Channel Area - 3 blocks, Approximately 37,000 acres

This area was staked to cover a belt of metasedimentary gneisses and mafic intrusives that strike S.W. from Pine Channel and pass beneath the Athabasca sandstones on the south shore. A pitchblende showing was discovered in these rocks on the north shore of Pine Channel in the 1950's (FKR showing). Drill core assays ranged from 0.07 percent U3O8/ 2.0 feet to 7.22 percent U3O8/ 3.0 feet, equivalent to 1.4 and 144.4 lbs. U3O8, respectively. There is also weak uranium mineralization at the unconformity just south of Pine Channel, near the northern boundary of the claim block.

Six radioactive sandstone boulder fields were identified in 1979/1980 field programs on the south side of Lake Athabasca, between Pine Channel and Orbenside Bay.

Previous work consisted of drilling in the vicinity of the unconformity showing. Results were negative based on the exploration model of the day. The area southwest of the showing was flown (magnetometer, EM). No targets were defined from these surveys. This is not surprising, as it is possible that uranium deposits in this part of the Athabasca Basin may not be associated with graphitic conductors. If so, the area of the claims is, in effect, virgin territory and an ideal candidate for modern prospecting techniques utilizing contemporary exploration models for unconformity-related uranium deposits. Economic deposits hosted entirely within basement rocks without significant graphite occur in the McLean Lake and Rabbit Lake areas on the eastern margin of the Athabasca Basin.

Area 2 - Crackingstone Peninsula - Uranium City Area - Approx. 15,000 acres

The claims, in an area with a complete infrastructure, cover the Black Bay (Crackingstone) Fault and the Martin Formation in the hanging wall of the fault. Pitchblende showings occur in the basement gneisses to the southeast of the Martin Formation and to the west of a fault in basement rocks beneath Lake Athabasca. The most significant showing is the Gulch Mine, a series of mineralized splays from the Black Bay Fault. Thus, pitchblende is found on both sides of the Martin Formation and there is no reason why the basement under the Martin should not be similarly mineralized. This possibility was never explored, either on the Crackingstone Peninsula or in other areas of the Martin Formation.

Consolidated Pine Channel's exploration program will be designed to test the area immediately beneath the unconformity by geophysics and drilling. The Martin Formation is not expected to be particularly thick in this area.

The Company's immediate focus is on the acquisition through staking of further ground in the Athabasca Basin. The Company will immediately commence the application of modern exploration techniques on these favourable properties.

The Company is very encouraged by the opportunity to explore for a commodity for which a price increase is anticipated, and has been forecast.

DON DAVID PROPERTY, CHIHUAHUA, MEXICO

We are pleased to report that an agreement has been reached with Imdex Inc. and Cia. Minera Cascabel S.A. de C.V. ("Imdex-Cascabel") with respect to an extension for completion of work commitments on the Don David Property. Considering the realities of the current gold market, and the impact this has had on gold exploration projects worldwide, Imdex-Cascabel have granted a 4 month extension for the completion of work scheduled for calendar 1997, subject to the Company making an acceptable proposal for modifying the original agreement.

PRIVATE PLACEMENTS COMPLETED

The Company has now completed the private placement announced December 22nd, 1997, which has raised $500,000 in exploration capital, through the issuance of 3,333,333 units, each consisting of one share and one warrant to purchase an additional share. The warrants are exercisable at $0.15 until December 22, 1998 and, thereafter, at $0.18 until December 22, 1999. The shares issued and any shares issued pursuant to the exercise of warrants are subject to a hold period expiring on April 22, 1998.

The Company has also completed the private placement announced December 23rd, 1997, which raised a further $50,000 in exploration capital, through the issuance of 312,500 units, each consisting of one share and one warrant to purchase an additional share. The warrants are exercisable at $0.16 until December 23, 1998 and, thereafter, at $0.18 until December 23, 1999. The shares issued and any shares issued pursuant to the exercise of warrants are subject to a hold period expiring on April 23, 1998.

STOCK OPTION GRANTED

The Company has today granted to a director an option to purchase up to 369,000 shares of the Company. The option is exercisable at a price of $0.21 per share for a period of 5 years from this date, subject to Vancouver Stock Exchange ("Exchange") and shareholder approvals. The exercise price was determined in accordance with the prevailing policies of the Exchange.

LEMAR PROPERTY ACQUISITION APPROVED

The agreement granting an option to the Company to acquire the two Lemar claims, Southern Mining District, Saskatchewan, announced in our news release of July 7, 1997, has now been accepted for filing by the Exchange. The Company has issued the first tranche of 50,000 shares to the vendor under the agreement, which shares are subject to a hold period expiring on July 2, 1998.

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The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of the content of this News Release.

CONTACT: Consolidated Pine Channel Gold Corp.

Dale W. Hoffman, 604/684-5118

[e-mail]

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