Cumberland Resources: Meliadine West -- Prefeasibility Study Clarified.

VANCOUVER, B.C.--(BUSINESS WIRE)--July 20, 1998--CUMBERLAND RESOURCES LTD. (CBDTSE)(THE "COMPANY"), AT THE REQUEST OF THE TORONTO STOCK EXCHANGE, PROVIDES THE FOLLOWING CLARIFICATION OF THE COMPANY'S NEWS RELEASE DATED JULY 8, 1998 (THE "RELEASE"), REGARDING THE MELIADINE WEST PREFEASIBILITY STUDY (THE "STUDY") CONDUCTED BY H.A. SIMONS LTD. (SIMONS). THE COMPANY CLARIFIES THAT THE STUDY WAS BASED ON INDICATED CATEGORY RESOURCES. THIS RECONCILES WITH NEW TSE RECOMMENDATIONS. THE INDICATED RESOURCES ARE AS FOLLOWS: /T/ MELIADINE WEST INDICATED RESOURCES DEPOSIT TONNES X 1000 GRADE GPT CONTAINED OZ X 1000 TURIRUNIAK 7, 980 11.12 2, 852 FZONE 1, 789 7.83 450 TOTAL 9, 768 10.52 3, 303 X USES A 5 G CUTOFF, DILUTED TO MINIMUM MINING WIDTH OF 2.5M RESOURCES ARE MODELLED BY WMC INTERNATIONAL LTD. /T/ THE COMPANY ALSO CLARIFIES THAT IN ORDER TO ACHIEVE THE PROJECTIONS MADE IN THE STUDY FOR A 10 YEAR MINE LIFE AND A PRODUCTION RATE OF 400, 000 OUNCES PER YEAR, AN ADDITION OF APPROXIMATELY 1.5 MILLION OUNCES TOTHE EXISTING INDICATED RESOURCE IS REQUIRED. UTILIZING THE PROJECTIONS OF THE STUDY, CUMBERLAND CONTRACTED SIMONS TO PREPARE A FINANCIAL MODEL FOR THE PROJECT AS DESCRIBED IN THE RELEASE. THE STUDY INDICATED A PROJECT NET PRESENT VALUE AT 5 PERCENT DISCOUNT OF $US 130.9 MILLION ($CDN 192.2 MILLION). FOR FURTHER CLARIFICATION, THE COMPANY'S 22 PERCENT INTEREST IN THE PROJECT EQUATES TO AN NPV AT 5 PERCENT DISCOUNT OF $US 28.8 MILLION ($CDN 42.3 Cumberland Resources(TSE:CBD.)

    CONTACT:  Cumberland Resources Ltd.
               Mr. Glen Dickson, 604/608-2557
               604/608-2559 (Fax)
                  or
               Cumberland Resources Ltd.
               Mr. Kerry Curtis, 604/608-2557
               604/608-2559 (Fax)
     INDUSTRY KEYWORD:  MINING/METALS