Drill Probes For Deep Bonanza Gold Deposits.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Oct. 8, 1997-- Robert G. Hunter, Chairman of Misty Mountain Gold Limited (TSE:MGL;VSE;MGL; NASDAQ:MGLCF) is pleased to announce that additional diamond drilling has commenced at the Company's 100% owned Harmony Gold Project on Graham Island in the Queen Charlotte Islands, British Columbia. The 400 square kilometre Harmony Property covers one of the world's premier epithermal gold systems and includes the Specogna Deposit which contains a mineable resource of 2.88 million ounces of gold. The current drill program is designed to probe for potential bonanza gold deposits which may have developed at depths of up to 200 metres below the currently known Specogna Deposit in a deeper, throttled portion of the epithermal system.

Misty has employed state-of-the-art computer technology to target the potential bonanza gold zones. This advanced system was used to generate three dimensional models, combining an extensive database of lithologic, structural, alteration, and geochemical information, and yielded new and important exploration insights. This work identified key structural conduits that channeled the gold bearing hydrothermal fluids responsible for the near surface Specogna Deposit. Projection of these zones towards their high grade source at depth has resulted in the delineation of three primary drill targets below the currently known deposit. A 3,000 metre,large diametre (HQ) drill program has commenced to test these key targets.

In addition to the deep drilling program Misty is conducting a wide spectrum of technical and environmental scoping studies to provide a framework to develop a comprehensive Specogna Deposit Prefeasibility Study. These activities include; socioeconomic considerations, environmental analyses, deposit modelling, resource estimates, mine designs, mineralogy, metallurgy, site facilities location, and infrastructure planning. Conventional metallurgical processes including gravity recovery, flotation, bio-oxidation, leaching and heap leaching are being evaluated as part of the scoping programs. A 1,700 kilogram bulk sample is presently undergoing testing utilizing Bio-Oxidation/Heap Leach processing techniques. Results from this program are being closely monitored because it is anticipated that this testwork will lead to a preferred, environmentally sound, low-cost processing option for the Harmony Project.

Successful results from deep exploration drilling and/or metallurgical testing are expected to have a major impact on Harmony Gold Project valuations. Results will be released when available.

The Toronto Stock Exchange and the Vancouver Stock Exchange have not approved nor disapproved the information contained in this news release.

ON BEHALF OF THE BOARD

Robert G. Hunter

Chairman

CONTACT: Misty Mountain Gold Limited

604/684-6365 or 800/667-2114

Fax: [phone]