Cornucopia Resources Ltd. to Acquire New Millennium from First Dynasty.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Aug. 27, 1997-- Cornucopia Resources Ltd. (NASDAQ:CNPGF)(TSE:CNP) and First Dynasty Mines Ltd. jointly announced today that an agreement has been reached for Cornucopia to acquire First Dynasty's wholly owned subsidiary, New Millennium Mining Ltd.

New Millennium's principal asset is the Dublin Gulch development project, which has mineable reserves of 1.51 million ounces of gold contained within a total resource of 3 million ounces. This transaction will see First Dynasty assume control of Cornucopia. First Dynasty will receive 45 million shares of Cornucopia, valued at Cdn. $32.4 million (US $23.3 million), which will represent 53.9% of Cornucopia's common stock upon conclusion of this transaction.

This agreement is seen as the beginning of a long-term strategic relationship between Cornucopia and First Dynasty, with the goal of developing Cornucopia into a major North American gold producer. This relationship is expected to include a sharing of technical and managerial personnel and assistance with Cornucopia's financing activities.

First Dynasty has reported that its Dublin Gulch project contains mineable reserves of 50.4 million tonnes with a grade of 0.93 grams gold per tonne (0.027 oz. gold/short ton), equivalent to 1.51 million ounces. Rescan Engineering Ltd. has completed a bankable feasibility study which included the following conclusions: -0-

Throughput rate:                   35,000 tonnes per day (seasonal)
Stripping ratio:                   0.8:1 (waste to ore)
Processing technology:             Heap leaching
Gold recovery:                     79.6%
Average annual production:         135,000 oz. per year
Initial capital cost:              US $106.7 million
Average cash production cost:      US $221 per ounce (including
                                   reclamation)

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There is scope for further optimization of the project's costs.

In addition to Dublin Gulch, New Millennium holds the rights to Clear Creek, an adjacent exploration project where a number of gold targets have been identified.

Andrew Milligan, President of Cornucopia, said that the company has been looking for a way to build on its successful development of the Mineral Ridge Mine. "The acquisition of New Millennium adds a development stage project to Cornucopia that could more than triple our current gold output. It also strengthens Cornucopia by increasing the company's asset base and brings in a strategic partner to facilitate our continuing growth."

Cornucopia currently has two principal assets, the Mineral Ridge Mine and the Ivanhoe exploration project. Mineral Ridge, 100%- owned by Cornucopia, is located near Tonopah in southwestern Nevada. It has mineable reserves of 4.7 million tonnes grading 2.41 per tonne (0.07 oz per short ton), equivalent to 330,000 ounces. The Mineral Ridge Mine poured its first gold in June of this year and is now producing gold near its design capacity of 50,000 ounces per year. A total of 120,000 ounces have been sold forward over the next 4 1/2 years at an average price of $407 per ounce. The project construction cost was US $25.8 million and was facilitated by a US $13 million loan from Dresdner Bank.

Ivanhoe is an exploration project on Nevada's Carlin Trend and is 25% owned by Cornucopia. On August 14, 1997, Cornucopia announced that agreement had been reached with Consolidated North Coast Industries, a Hunter-Dickinson group company, for North Coast to earn a 75% interest in the project. The earn-in includes an initial US $2.8 million exploration commitment by North Coast before Cornucopia needs to fund its pro-rata interest.

Marcus Randolph, President of First Dynasty, said that First Dynasty's focus on Asia had prompted it to seek a North American partner to help develop and maximize the value of Dublin Gulch. "Cornucopia is focused on North American gold projects and also has the management expertise to ensure Dublin Gulch's successful development. This agreement with Cornucopia allows us to retain a share in the upside that successful project development will bring.

We have also obtained control of a producing company with operating expertise that we will be able to use in our Armenian and other projects."

The principal components of the agreement are: -0-

-   Cornucopia will acquire 100% of New Millennium in exchange for
    45 million shares of Cornucopia common stock.  Based on
    Cornucopia's currently issued and outstanding shares, First
    Dynasty will then own 53.9% of Cornucopia.

-   First Dynasty will be entitled to appoint half of Cornucopia's
    Board of Directors and have a tie-breaking vote.

-   Management of Cornucopia and New Millennium will remain as
    currently constituted.  Andrew Milligan will continue as
    Cornucopia's CEO and President, Steve Stine will continue as
    President of New Millennium.

-   The agreement is conditional on the execution of a definitive
    agreement, approval of Cornucopia's shareholders and other
    regulatory approvals.  Closing is expected to occur before the
    end of the year.

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First Dynasty is a Canadian mining company, based in Singapore. In addition to its interest in New Millennium it is constructing a gold plant in Armenia and is conducting feasibility studies on expanding two additional gold mines, based on a combined gold resource of 6 million ounces. First Dynasty also explores for gold in Myanmar and Indonesia and is in the process of finalizing the sale of its interest in the Sembakung oilfield for US $40 million plus working capital.

Cornucopia Resources Ltd. is listed on the Toronto Stock Exchange under the symbol CNP and trades on the NASDAQ Small Cap market under the symbol CNPGF. First Dynasty Mines Ltd. shares trade on the Toronto Stock Exchange under the symbol FDM and are quoted on the NASDAQ market under the symbol FDYMF.

CONTACT: Cornucopia Resources Ltd., Vancouver

Andrew F.B. Milligan, 604/687-0619

FAX: [phone]