Consolidated Pine Channel Summer Exploration Program.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Aug. 27, 1996--CONS. PINE CHANNEL (VSE:KPG) Mr. Dale Hoffman, president of Consolidated Pine Channel Gold Corp. (the "Company"), is pleased to provide an update on the summer exploration program, and to outline the scheduled fall and winter programs.

On claim CBS-8175 and the recently staked S-105445, both within the Consolidated Pine Channel - JNR Resources Inc. area of interest, initial results from the summer reconnaissance program outlined in our News Release dated July 25, 1996, are turning out to be most encouraging. To date, four different showings have been found by prospecting:

(a) Old Cabin Quartz Vein (b) Ridge Zone (c) 450 North Vein (d) South East Pond Zone

Because of the encouraging values returned from these showings, the camp has been moved for better access. An all-weather camp has been constructed for further evaluation of these showings. Additional prospecting is presently taking place, with the placement of a grid over the properties in progress. Geophysics are scheduled to commence August 27, 1996, with a drill program to follow, as targets are clearly identified.

First pass sampling of the Old Cabin quartz vein traced along strike for 290 meters, with widths uncovered so far of 1 metre plus, and with gold values present, to date, for over 200 meters. The area known as the "gold showing" returned the following extremely high gold values from selected samples (each weighing 2.5 to 3.5 lbs.), where visible gold is present:

 Fire assay returns:   Sample       Assay Values (Au)
                       E-112410       7.51 oz/ton
                       E-112411      21.19 oz/ton
                       E-112412       4.96 oz/ton
                       E-112413       9.72 oz/ton
 ICP analysis return:  E-112415        796 PPM
 (Awaiting fire assay)

Further assay results from selected samples taken by Dale Hoffman on his last property visit, from mineralization in the area of the "gold showing," are:

 Fire assay returns:   Sample        Assay Values (Au)
                         Q-1           1.32 oz/ton
                         Q-2           1.21 oz/ton
                         Q-3           4.29 oz/ton
                         Q-4          27.98 oz/ton

Additional assays of samples from areas of limited exposure along strike, where stripping and trenching is presently taking place, are as follows:

Fire assay returns:    Sample         Assay Values (Au)
                      E-112263          0.078 oz/ton
                      E-112265          0.077 oz/ton
                      E-112269          0.027 oz/ton
                      E-112372          0.039 oz/ton
                      E-112414          0.772 oz/ton

Although it is far too early to estimate what the potential of this area may be, these results indicate that the area merits further work.

A crew is presently stripping, blasting and trenching along the vein, to further determine width and grade. This, combined with geophysical data, will help to outline drill targets.

We welcome you to view these samples, on display in our hospitality suite at the upcoming Las Vegas Mining Conference Gold Show, at the Mirage Hotel & Resort, Las Vegas, Nevada. Viewing will be possible from 3 p.m. to 8 p.m., September 4th and 5th, 1996.

On the Ridge Zone, initial samples taken from gossinous sulphide mineralization have returned gold values (by fire assay), from three sample sites, to highs of:

North Ridge 0.126 Oz/ton Au

Central Ridge 0.265 Oz/ton Au

South Ridge 0.016 Oz/ton Au

High-pressure washing is currently being carried out, in order to better sample this area.

Fire assay results recently received, from samples of freshly selected mineralization taken by Dale Hoffman on his last property visit, are:

 Area        Sample         Assay Values (Au)

 North Ridge    B-1             0.281 oz/ton
                B-2/3           0.293 oz/ton
 Central Ridge  B-6             0.678 oz/ton
 South Ridge    B-4             0.208 oz/ton

Base metal assays are still in process. Again, it is far too early to estimate the potential size or tonnage of the area. The shear that is presently being opened up is approximately 20 feet in width, and all three sample sites are striking at approximately 120 degrees, at least 125 metres apart.

450 North quartz vein samples, from selected surface material on the vein, returned gold values ranging to a high of 0.382 oz/ton. Further evaluation of the area is in progress.

In the South East Pond Zone, found prior to moving camp, a fire assay of gossinous sulphide mineralization returned 0.031 oz/ton gold.

ASBELL BAY PROPERTY

Consolidated Pine Channel and JNR Resources (on a 50/50 basis) have entered into an agreement with David Partridge, subject to final documentation and to Vancouver Stock Exchange approval, whereby we may explore mineral claims S-105368 and S-105444, Northern Mining District, Saskatchewan, for a two month period, in consideration of a $5,000 payment to Partridge. At the end of that time, the Company and JNR will have the right to proceed with a formal option, whereby they may earn a 100 percent interest in the claims, subject to a 1.5 percent net profits interest royalty (NPI), by the staged issuance of a total of 200,000 shares (100,000 shares from each of the Company and JNR), and cash payments totalling $200,000 over 4 years, as well as an NPI buy-down to 1/2 percent, for $1.5 million.

Prospector David Partridge uncovered an intruding gossin, in March, 1996. Initial results from the first sample returned 0.29 percent molybdenum, 0.56 percent copper, with 1.7 grams per tonne of gold. The showing was then opened up.

The next seven samples, taken from fresh material after blasting, returned an average of 1.33 percent molybdenum, 1.12 percent copper and 2.59 grams per tonne of gold. Work on these properties will commence in the first week of September, with a program of prospecting, line cutting, trenching and geophysics, to outline drill targets for a fall drill program.

DENARE BEACH PROPERTY

The Company and JNR Resources, on a 50/50 basis, have entered into an agreement with Wayne Fisher, subject to Vancouver Stock Exchange approval, whereby they may acquire a 100 percent interest in claim S- 104099, N.M.D., Saskatchewan, by staged payments totalling $200,000 and the issuance of 200,000 shares (100,000 from each of the Company and JNR). S-104999 ties-in closely to the recent Hudson Bay Exploration and Development Co. Ltd. - Denare Beach copper-nickel discovery. Recent bedrock geological mapping and soil sampling, by Saskatchewan Energy and Mines, indicates that targets similar to the Denare Beach project may be present on this claim.

This property is road-accessible, and the Company plans a geophysical program over this property. If targets are present, a fall drilling program is planned.

DIAMOND EXPLORATION

On the diamond front, Consolidated Pine Channel is working with Monopros Limited, and has selected two targets within the Consolidated Pine Channel - H20 Entertainment Limited (formerly "Canadian Entech Research Corp.") joint venture area of interest ground. The Company presently has a 58.2 percent (H2O - 41.8 percent) interest in this area.

These targets, as determined from modelling done by Monopros, have the potential to be kimberlite pipes, with depths modelled at from 84 meters to 127 meters. An offer has been made by JNR Resources to H2O Entertainment, for JNR to acquire H2O's 41.8 percent interest in the area. The Company and JNR are presently awaiting a response from H2O, which is consulting with their advisors on the matter.

Should H2O not be in agreement with the offer made, Consolidated Pine Channel has advised them that we plan to drill the property, either with H2O's participation in the funding or, subject to Vancouver Stock Exchange approval, JNR will fund H2O's portion thereby earning an interest in the property.

Both the Company and JNR are well-funded to carry out the first phase on all of the above-noted projects.

Additional information will be released as it becomes available, on all projects mentioned in this release.

CONSOLIDATED PINE CHANNEL GOLD CORP. Per: Dale W. Hoffman, President -0-

Note to Editors: 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, 604/687-2144 or 604/684-5118

604/682-8566 (Fax)

Internet: www.infodine.com/kpg/kpg.htm

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