Cuiaba Concession Capable of Producing 3-5g/t Yield According to New Study.

LONDON--(BUSINESS WIRE)--Sept. 5, 1997--Toucan Gold Corp., a Delaware registered mining company (OTCBB: TUGO), has announced details of a report suggesting "considerable gold mineralization potential" on its lateritic supergene gold property in Brazil.

Toucan owns the exploration rights to more than 5,000 square miles of priority mining claims in the Cuiaba Basin in the State of Mato Grosso, Brazil representing one of the largest single mineralized land holdings in the country.

The report by leading geologist, Dr. Louisa Lawrance, indicates that:

-- unusually, disseminated gold lies directly beneath the nugget patches;

-- samples suggest an estimated original primary grade of 3-5g/t given the strong sub-vertical control of groundwater movement;

-- it is recommended that geo-chemical samples be taken into saprock but at least 15m into lower saprolite.

Robert Jeffcock, president and CEO of Toucan, said: "This is a very strong report from the world's leading expert in the field. Given the scale of our concession and existing operations in the area we are confident for the future of Toucan."

Toucan expects to have completed regional geology and mapping of the area during September and to start geochemical sampling by shallow drilling in October. Assays are expected to be available by the beginning of December.

(Note: Dr. Louisa Lawrance is chairperson of the Geological Society of Australia and the Australian Geochemistry Specialist Group. A synopsis of her Assessment of Regolith Situation and Potential for Geochemical Exploration, Cuiaba, Brazil is available on request.)

CONTACT: Toucan Gold Corp., London

Robert Jeffcock, 011 44171 4932843

Internet: www.toucangold.com

or

Ron Como & Associates Inc.

212/227-3010