Cusac Gold - revenues up 68 percent in profitable 1996.

VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--March 10, 1997-- Cusac Gold Mines Ltd (TSE CQC., NASDAQ CUSIF.) Guilford H. Brett, President, is pleased to report the following summarized 1996 full year results. All figures are in Canadian Dollars. -0-

                          Three Months Ended December 31
                                1996          1995

Production Revenue          $1,975,000    $2,605,000
Production Costs             2,094,000     1,446,000
Administration Costs           230,000       138,000
Net Income (loss)             (349,000)    1,021,000
Net Income (loss) per share     ($0.02)        $0.05


                          Twelve Months Ended December 31
                                1996          1995

Production Revenue          $10,963,665   $6,530,015
Production Costs              8,285,636    6,333,208
Administration Costs            849,103      776,024
Net Income (loss)             1,828,926     (579,217)
Net Income (loss) per share       $0.10       $(0.04)

1996 RESULTS

Revenue increased 68 percent in 1996 to $10.96 million compared to $6.53 million in 1995. The increase is due to higher gold production at the Table Mountain Mine, which was up 66 percent to 22,000 ounces, compared to 13,220 in 1995. The average mill head grade for 1996 was 0.81 ounces of gold per ton.

Net earnings were $1.8 million or $0.10/share, compared to a loss of $579,217 or $0.04/share in 1995. Cash flow from operations was $3.2 million or $0.18/share, compared with a deficit of $1 million for 1995. Working capital at December 31, 1996 was $2.88 million.

FOURTH QUARTER RESULTS

Revenue for the three month period ended December 31, 1996 was $1.97 million, compared to revenue of $2.6 million for the same period in 1995. Decreased Fourth Quarter revenues are attributable to lower than expected ore grades and lower realized gold prices for the period, contributing to a loss of $349,000 or $0.02/share, compared to a gain of $1 million, or $0.05/share in 1995.

1997 OUTLOOK

Milling at Table Mountain resumed today following an eight week seasonal shutdown, further downtime was related to maintenance and improvements in the mill and powerhouse. Production for the first three months of 1997 is expected to be Cusac's best First Quarter so far.

With proven and probable reserves currently at approximately 46,000 ounces, management is confident that 1996's production levels can be maintained, and possibly increased. Production during the first six months is expected to be largely from the Vollaug Vein and the Melissa Vein.

EXPLORATION

Special focus in 1997 will be given to aggressive exploration of the Erickson Creek Fault Zone, which hosts the Michelle High Grade Zone. Also, extensive surface diamond drilling is planned for the Vollaug structure, which has significant potential for substantial additional reserves. Management's goal in 1997 is to dramatically expand gold reserves at Table Mountain.

TAURUS PROJECT

Joint Venture partner Taurus International Resources Inc. has informed Cusac that numerous drill holes are planed on Cusac's claims in 1997. The holes are part of Taurus's program of reserve definition and expansion of the Taurus Project. Taurus estimates that the 88 - Hill Zone contains total drill indicated and geologically drill inferred resources of approximately 1 million ounces of gold. Cusac Gold Mines Ltd. Per/

Guilford H. Brett, President -0-

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

CONTACT: Cusac Gold Mines Ltd.

Guilford H. Brett, 800/665-5101 (USA)

1-800-670-6570 (Canada)