Cusac Acquires Zacatecas Properties, Mexico.

VANCOUVER, B.C.--(BUSINESS WIRE)--March 10, 1998--CUSAC GOLD (TSE:CQC) (NASDAQ:CUSIF) Guilford H. Brett, president, is pleased to report that Cusac Gold Mines Ltd. has signed a Letter of Agreement whereby Cusac can purchase 50 percent of Minera Basay, S.A. De C.V. of Chihuahua, Mexico.

Basay owns or holds rights to 5 mineral properties, including a modern operational 200 tpd mill in the Chalchihuites Mining District in the State of Zacatecas. All of the properties host silver-lead-zinc mineralization with near term production potential as well as significant exploration potential.

The agreement with Basay calls for a total of $1,750,000 U.S. in payments over a three stage period. $1,250,000 U.S. of this amount is to be applied to mine development, mill improvement and other capital expenditures, as well as on-going exploration work to consist primarily of diamond drilling.

U.S. $5,000.00 has been advanced and U.S. $250,000 is required to be forwarded within 90 days of a more formal agreement being signed. This agreement is also subject to the approval of the Toronto Stock Exchange.

The five Basay mines are historic silver-lead-zinc and copper-gold producers with extensive underground workings and are all located within 19km of its 200 tpd expandable mill and comprise a total of 440 hectares.

The properties host potential for manto-style Ag-Pb-Zn replacement type ore bodies, chimney type Au-Ag-Pb-Zn-Cu ore bodies and vein type ore bodies.

Minimal diamond drilling has been completed to date, but sufficient underground resources have been outlined to justify immediate production, given the low start-up capital requirements.

The Chalchihuites Mining District is highly active with major Mexican mining companies I.M.M.S.A. and Penoles currently developing projects nearby.

The Basay property, Magistral, for example, is 2km on strike from I.M.M.S.A.'s Guantes Cronos project, which is reported to host a 25 million tonnes chimney-type Ag-Pb-Zn deposit where 5 diamond drills are currently exploring.

Also, Basay's La Rusia Mine is 3km southeast of PanAmerican Silver Corporations La Colorada silver mine, now under expansion.

Basay plans to activate the La Rusia Mine first, where grades average 1 g/t Au, 120 g/t Ag, 8.5 percent Pb, 6 percent Zn and 0.8 percent Cu. Another property, the Esmeralda Mine, which adjoins the Noranda option ground, hosts a significant copper oxide deposit with historic grades running between 2-10 percent copper.

The deposit appears to be a "pipe" like alteration zone which is approximately 70-100 meters in diameter where examined. The zone is open in all directions. No diamond drilling of this deposit has been carried out. Basay plans to drill several underground holes to determine the size and grade of this deposit.

Minera Basay S.A. de C.V. is currently owned and run by a group of professional mining engineers with extensive background and experience in underground mining operations throughout Mexico. Basay and its current management will operate the project together with Cusac personnel. -0- CUSAC GOLD MINES LTD. (Signed) Per Guilford H. Brett, President -0- Note: Location map available from the Company at the phone number listed below.

CONTACT: Cusac Gold Mines Ltd.

David Brett, 800/670-6570 (Toll Free)

Website: http://www.cusac.com

E-mail: [e-mail]