Dayton Mining Banking Update.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Oct. 23, 1998-- Dayton Mining Corp(TSE:DAY.) (AMEX:DAY) Dayton Mining Corporation (TSE, AMEX:DAY) announces that discussions are continuing with the company's banking syndicate and other lenders for the restructuring or refinancing of the company's bank debt. All existing defaults were previously waived by the lenders through October 19, 1998 but an extension has not, to this date, been granted and as a result the company's subsidiary is technically in default under the existing loan agreement. As arranged earlier, Dayton's CEO, Bill Myckatyn, and CFO, Don MacDonald, will be meeting the syndicate members and other lenders in the coming week to discuss an extension of the waiver and the restructuring or refinancing.

Mr. Myckatyn said, "Although there is no assurance that an agreement will be reached, there is currently US$17.9 million outstanding on the loan, of which US$12.9 million is cash collateralized. Given that only US$5 million is not cash collateralized and the lenders are secured by the Andacollo Gold Mine, we are hopeful that a satisfactory agreement can be reached." Dayton will announce the results of these discussions as they progress.

Dayton Mining Corporation holds a 100 percent interest in the Andacollo Gold Mine located in central Chile, and trades on both the American Stock Exchange (AMEX) and Toronto Stock Exchange (TSE) under the trading symbol DAY.

Notice: The Company relies on litigation protection for "forward looking" statements.