Dayton Retires Andacollo Project Loan; Dayton Releases Fourth Quarter 1999 and Year End 1999 Operating Results.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--Jan. 20, 2000

Operating Results

Dayton Mining Corporation (AMEX:DAY) (TSE:DAY) announces today that its Andacollo Gold Mine located in central Chile produced 29,507 ounces of gold in the quarter ended December 31, 1999 bringing total production for 1999 to 134,955 ounces. Cash operating costs for the fourth quarter were US$244 per ounce of gold, bringing 1999 cash costs to a total of US$204 per ounce. Higher costs were due to some additional stripping during the quarter and slightly lower feed grades. These figures represent the highest annual production and the lowest annual cash operating costs achieved at the Andacollo Gold Mine since it began commercial production in 1996.

Year-to-date production and cash operating costs were within 2% and 3% of plan respectively.

Financial Update

At December 31, 1999 Dayton had US$5.3 million in cash. The final loan payment of US$1.67 million was made by Dayton on January 19, 2000 resulting in the elimination of the Andacollo project debt. Bill Myckatyn, Chairman, President and CEO states: &uot;In this very difficult gold market, we are pleased with the achievements and operating results of the Andacollo Gold Mine during 1999 and the successful elimination of the project debt. Dayton's clean balance sheet and solid operating asset provide a strong foundation for growth and adding shareholder value.&uot;

Dayton's current hedge position has not changed since it's last reporting in November. The hedge position consists of 30,000 ounces of spot deferred contracts at prices ranging from $304 to $315 per ounce and maturing at various dates from January 2000 to November 2000.

Effective December 31, 1999 Mr. James E. Askew resigned from the Board of Directors of Dayton. Mr. Askew recently moved to Australia and due to business commitments associated with this move has resigned his position with Dayton. The Board of Dayton would like to thank Mr. Askew for his valuable contribution to the Company over these past eighteen months and wish him well in his new endeavours.

Dayton Mining Corporation holds a 100% 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.

&uot;Safe Harbor&uot; Statement: The statements, which are not historical facts contained in this release, are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from targeted results. These risks and uncertainties include but are not limited to significant declines in precious metals prices; currency fluctuations; increases in production costs; differences in ore grades, recovery rates, and tonnes mined from those expected; changes in mining, or heap leaching rates from currently planned rates; the results of current exploration activities and new opportunities; and other factors detailed in the Company's filings with the U.S. Securities and Exchange Commission.

For further information please contact Diane Thomas Garrett, Vice President, Investor Relations 604/662-8383 Notice: The Company relies on litigation protection for &uot;forward looking&uot; statements.