Cusac Gold Mines: High Grade Drill Results Announced.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Sept. 3, 1997-- CUSAC GOLD (TSE CQC., NASDAQ CUSIF.) Guilford H. Brett, President, is pleased to announce preliminary results from the Company's ongoing exploration program at its 100 percent owned and operated Table Mountain Gold Mine located in north-central British Columbia.

Current underground and surface diamond drilling at Table Mountain is focusing on three prime target areas. On surface, a series of holes are planned to test an as yet unexplored area known as the Main Mine Extension Zone. The "Main Mine" area hosted a series of prolific veins mined by Cusac's predecessors and were believed to have been highly displaced to the east by the Erickson Creek Fault. Cusac geologists have reinterpreted previous data and believe that the eastern extension of these veins are not displaced as much as previously thought. The first hole in this area intersected a mineralized quartz vein as follows:

Hole no.: 97MX-8  From: 88.3 m (289.6 ft) to 88.9m (291.6 ft)
                  Interval: 0.6 m (2.0 ft)
                  Assay: 8.381 OPT Gold

Underground drilling of the Lilly and Melissa veins is underway. The high grade Lilly vein provided most of Cusac's 1996 production. Current drilling is designed to define its extension to the east. Results indicate a possible new ore-shoot developing, based on the following drill intercept:

Hole no.: 97LE-7  From: 70.91 m (232.6 ft) to 72.47 m (237.7 ft)
                  Interval: 1.56 m (5.0 ft)
                  Assay: 0.636 OPT Gold

Drilling in the Melissa area is testing extensions of this structure in close proximity to current mining. The width and grade of the vein appears to be improving significantly to the west as indicated by the following results:

Hole no.: 97MEL-3 From: 18.3 m (60.0 ft) to 20.05 m (65.75 ft)
                  Interval: 1.75 m (5.75 ft)
                  Assay: 2.645 OPT Gold

Drilling is ongoing and further results will be announced when available.

CUSAC GOLD MINES LTD. Per/

Guilford H. Brett, President -0-

Note To Editors: 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, 604/682-2421

604/682-7576 (FAX)

E-mail: [e-mail]

http://www.cusac.com