Cusac Gold Mines: Encouraging Drill Results Announced.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Oct. 17, 1997-- Cusac Gold Mines Ltd. (TSE: CQC; NASDAQ: CUSIF) -- Guilford H. Brett, President, reports significant new high-grade gold drill intersections on various structures being explored on the Company's 100 percent owned and operated Table Mountain Gold Mine in north-central British Columbia.

Cusac's summer/fall exploration program, still underway, has involved three diamond drills, two underground and one on surface.

On surface, the intent of the program was to identify eastern extensions of veins mined by previous owners in an area called the Main Mine. Past production from the main mine was 280,719 tons grading 0.482 ounces of gold per ton (135,393 ounces recovered) One intersection, previously reported, assayed 8 oz Au/ton over 2 feet and is now believed to be the extension of the Dease Vein. Another vein, the Bear Vein, has now been intersected with the following significant results:

Hole #        Footage              Interval   Assay(opt Gold)
97MX-19  35.1-36.9m (115-121ft.)  1.8m (6ft.)    0.847

The above intersections are approximately 80m (260ft.) feet east of underground workings where the Bear Vein was mined underground. The Bear Vein remains open on strike and down dip. The close proximity of the above intercept to surface and existing underground workings make the Bear Vein an attractive target for possible near term development and mining. Follow-up drilling is now underway.

Underground, one drill is testing a new target in the vicinity of the Michelle Highgrade Zone that has confirmed ore-grade mineralization adjacent to the Cusac decline. Significant results include:

Hole #        Footage              Interval   Assay(opt Gold)
97MHG-1  16.2-17.7m (53-58ft.)    1.5m (5ft.)    1.970
97MHG-3   9.5-10.55m (31-34.5ft.) 1.05m (3.5ft)  0.324

Stope-definition drilling will commence within a week and should result in an increase in near-term high-grade mining reserves.

Also underground, "wildcat" drilling north of the Melissa Vein has identified a highly significant new vein. The as yet unnamed vein is a very strong, wide, well mineralized structure within an extensive alteration zone typical of ore bearing veins on the property. The intersection returned only low grade gold values, assaying 0.075 opt over 10.5 feet. This intersection, however, based on current information, is projected to be well below the expected ore bearing horizon. Additional holes are now being drilled to test this promising new structure up-dip and on strike.

Underground development work consisting of two raises on a narrower section of the highly productive Lilly Vein has yielded very high gold grades in chip samples, with multiple ounce values ranging up to 13.408 opt over 0.35m (1 foot). Drilling data in this area is limited, and the intent of this and further development work is to further define near term reserves while also generating high grade mill feed. Cusac Gold Mines Ltd.

Per/

Guilford H. Brett, President -0-

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CONTACT: Cusac Gold Mines Ltd.

Guilford H. Brett, 604/682-2421

604/682-7576 (fax)

http://www.cusac.com

e-mail: [e-mail]