Cusac Gold Receives $1.75 Million Funding.

VANCOUVER, B.C.--(BUSINESS WIRE)--Aug. 28, 1997--Cusac Gold Mines Ltd (TSE CQC., NASDAQ CUSIF.) David H. Brett, Vice President, is pleased to report that the Company has completed a private placement of 2.1 million Special Warrant Units at $0.60 per unit for gross proceeds of $1.26 million. (This transaction was earlier announced as involving a total of 2.5 million units, but was reduced to comply with Toronto Stock Exchange regulations.)

A commission of 5 percent is payable to Canaccord Capital Corp. A finder's fee of 3 percent is payable to Barrington Financial Services Inc. The warrants consist of one common share and one warrant to purchase one share at $0.60 during the first year and $0.70 during the second year. This financing is in addition to $490,000 recently received upon exercise of 700,000 stock options at $0.70 per share.

The purpose of this financing is to provide funding for Cusac's drive to build gold reserves through an aggressive exploration program now underway at its 100 percent owned and operated Table Mountain Mine in north-central British Columbia.

As earlier reported, Mr. P.L. Hammond, CA was recently appointed to Cusac's Board of Directors, the first of two directors to be appointed in conjunction with the above financing. The second appointment is expected to be made in the near future.

Cusac's Table Mountain Gold Mine 1997 summer exploration is now underway. Two diamond drills, one on surface and one underground, are currently testing priority targets. Preliminary results should be available soon and will be announced in due course. -0- Cusac Gold Mines Ltd. David H. Brett, Vice President and Director -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.

David H. Brett, 800/670-6570