Cusac to Acquire Profitable Alberta Gas Producer; Financing Arranged.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--July 23, 2001

Mr. Guilford H. Brett, President, Cusac Gold Mines Ltd. (TSE:CQC) (OTCBB:CUSIF), reports that Cusac has signed a letter of intent to acquire 100% of 906459 Alberta Ltd., a private oil and gas exploration and development company with a portfolio of properties from which it enjoys net production of 286 Mcfpd of Natural Gas and 7 boepd oil.

The properties also have exploration potential. Under the arrangement, 906459 Alberta Ltd.'s oil and gas management team will join Cusac's existing team to pursue a strategy to build energy assets and maintain its strong base of gold and other mineral resource properties as a diversified natural resource company. Cusac's 100% owned Table Mountain Gold Mine in the Cassiar district, which has produced 400,000 oz of gold to date, remains under care and maintenance. The Company controls over 80 square miles of staked property in the area, a fully permitted mine infrastructure and a 300-ton per day mill. Management believes the property has potential for additional high-grade gold reserves. The purchase price for 906459 Alberta Ltd. is 15,000,000 shares of Cusac common stock. The acquisition should also allow Cusac to realize on its significant loss carry forwards accumulated during its thirty-year history as a mineral exploration and gold production company. In conjunction with the transaction, Cusac has arranged a private placement of 2,000,000 units at $0.15 per unit consisting of one common flow-through share and one warrant to purchase an additional non flow-through common share at &0.25 for a period of one year. The transaction is subject to closing, the approval of the Toronto Stock Exchange, and shareholder approval.

The principals of 906459 Alberta Ltd. are Mr. James G. Evaskevich, Mr. Don J. Brown, P. Eng., Mr. Al J. Kroontje, P. Eng and Mr. Robert D. Weir, P. Eng. Mr. Evaskevich, who will join Cusac's board, has over 25 years of oil and gas industry experience, primarily in the areas of field operations and facility construction.

Mr. Evaskevich is currently a Director and Operations Manager of Glacier Ridge Resources Ltd., a private oil and gas company with current production of 500 boepd and an asset value exceeding $30 million.

Mr. Brown, who will join Cusac's board, is a Petroleum Engineer with over 22 years of oil and gas industry experience, primarily in reservoir engineering and the evaluation, acquisition and optimization of oil and gas properties. Mr. Brown co-founded and is a Director of Quarry Oil & Gas Ltd., a CDNX listed oil and gas company with current production over 900 boepd.

Mr. Kroontje, is a Petroleum Engineer and has over 22 years of oil and gas industry experience. Mr. Kroontje co-founded and is a Director of Quarry Oil & Gas Ltd., a CDNX listed company with current production over 900 boepd. Mr. Kroontje founded and is the President and a Director of Telford Resources Ltd., an oil and gas service company listed on the CDNX.

Mr. Weir, who will join Cusac's board, is a Petroleum Engineer and has over 32 years of oil and gas industry experience, primarily in the areas of drilling, production operations and facility construction. Mr. Weir is currently the Vice President Engineering of Glacier Ridge Resources Ltd. and a Director of Telford Resources Ltd.

906459 Alberta Ltd. currently has producing properties located in the Provost (Kirkpatrick West and East) and Badger areas of southern Alberta. Total production net to the company for the first four months of 2001 was 55 Boepd (using a 6/1 gas/oil ratio) comprised of 286 Mcfpd gas and 7 Bpd of oil and natural gas liquids. Cash flow for the first four months of 2001 was approximately $190,000. Production is 87% gas weighted and is characterized by long life reserves and low decline rates. One of the properties has significant potential to increase production through low risk re-entries of suspended or abandoned wellbores. Following is a description of the individual properties.

Kirkpatrick West

The company has a 100% working interest and operates two producing Viking gas wells that were recently pipeline connected and commenced production in 2001. The company also has an average 16% non-operated working interest in two Belly River gas wells that commenced production in late 2000. The company has an 45% operated working interest in a suspended well that it intends to re-enter and produce from a zone that was previously suspended due to low gas prices. Net production from this property in the first four months of 2001 was 175 mcfpd and 1 bopd.

Badger

The company has a 30% non-operated working interest in two producing Mannville oil wells. The wells produce significant gas and gas is conserved and sold. The company also has a 30% working interest in the onsite separation/treating facilities. Net production from this property in the first four months of 2001 was 74 mcfpd and 6 boepd.

Kirkpatrick East

The company has a 4% non-operated working interest in 7 low decline Viking gas wells and also has a 3.5% royalty interest in 5 of the wells. Combined production is 685 mcfpd (net 46 mcfpd). Operating costs are low due to processing revenue from an interest in the plant. The wells produce to a company owned gas plant and third party processing income is received from the plant. Net production from this property in the first four months of 2001 was 37 mcfpd.

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