Eurasia Gold Fields is Conducting an Extensive Exploration Program in Buriatia, Baikal Lake Region in Southeastern Siberia, Russia.

MOSCOW--(BUSINESS WIRE)--Oct. 27, 1998--EURASIA GOLD FIELDS has acquired two exploration properties in Buriatia (Russia): the Tainskoye and Zunospinskoye fields.

They are located in the Okinski district of the Buriatia Republic, 150 km west of Baikal lake and 100 km east of Orlik, the administrative center of this district. The distance between the properties is 5 km and they can be reached by gravel and dirt roads. Energy is easily available, as there is a 35,000 Volt electricity line on the famous Zun - Kholbinski gold mine just 40 km north - west of the properties. Both properties are 100% owned by the Company.

Tainskoye Property

The Tainskoye property consists of 1400 has. The topography is very rugged with heights up to 3200m. The regional geology consists of Lower Paleozoic granites, Archean gneiss, Mid-Proterozic schists, carbonates and opholites including serpentine, and talk-carbonates. These rocks are common in other major gold belts in the world, including the prolific Timmins - Porcupine belt in Canada. On the property itself, the mineralized lode is hosted by Paleozoic granite and contacts with Protozoic serpentines and carbonates.

The mineralization consists of both grey quartz veins containing 3-5% sulfides. Including varying amounts of pyrhotite, chalcopyrite and sphalerite and altered granites (metosomatites) which are now composed of quartz-mica rocks which contain quartz vein and sulfides. Assay results from the main vein range from 4,6 g/t over 1m to 11,6 g/t Au over 0,8 m. The widest exposure observed to date returned 10,56 g/t Au over 1,8m. A large mineralization boulder, grading 215 g/t Au and 152 g/t Ag was found 1km south east of the outcropping vein. Preliminary metallurgical results indicate recoveries of 80-99% using gravity and gravity-flotation-cyanization methods. Silver content goes from 27,9 g/t to 141,4 g/t.

Zunospinskoye Property

Zunospinskoye property consists of 440 has. The topography is very rugged with the main showing occurring at the top of a hill at 2600m ASL. The regional geology is similar to the above Tainskoye. On the property itself, a biotitie - hornblende granite is locally overlain by basalts. Mineralization is associated with series of shear zones, veins and stockworks which occur with the granite and locally along contact of the granite and ophiolite - carbonate sequence. The system exposed over a 1.5 - 2 km strike length with a width of up to 80m although the mineralization explored to date is more commonly 1.5-2.0 m in width. The adit exposes up to 7 individually steeply dipping veins, all of which are reported to contain economic value. Only one vein has been explored to date in detail although other zones are reported on the property.

Typical samples from the main vein include grab assays ranging from 4g/t up to 26g/t Au. The vein has a potential strike extent of 2 m if in fact it extends beneath the basalt cover as indicated by geophysical results which are reported to indicate a conductive source on strike with the vein exposure.

Resources

Both fields were explored from early 1960's. More than 5.000m3 of trenches were opened. Two adits at depth of 30 and 90m were opened with 298m length. Two vertical (200 and 198m) and four horizontal holes (total 610,4m) were drilled. 4100 samples were taken from the trenches and 150 samples from the drilling. Tainskoye and Zunospinskoy fields were thoroughly covered by geophysical and geochemical research and extensive surface geological exploration.

As a result of previous exploration, the Republic of Buriatia (Russia) Geological Committee has estimated the following resource: -0-

   Table 1 - Summary of resources of Tainskoye and Zunospinskoye
                             Properties

Properties            Ore in       Resources           Content
                     th. Tons   Gold kg  Silver t   Gold   Silver
                                                     g/t    gr/t
C1 + C2
Tainskoye             1.204,9   10.768,6   195,6     9,0   162,3
Zunospinskoye            73,5    2.003,0     6,2   27,25    84,9
Total C               1.278,4   12.771,6   201,8
--------------------------------------------------------
P1 + P2
Tainskoye                        4.999,0    37,0
Zunospinskoye         3.374,0   23.880,0   622,6
Total P                         28.879,0   659,6
-------------------------------------------------------
Total                           41.157,6   861,4
--------------------------------------------------------

Current exploration program

The Company started an extensive exploration program in May 1998 which will last till late November 1998. Currently, more than 100 people are working in this program. The program, concentrated on the Zunospinskoye field, which has been less explored than the Tainskoye field. It consists of 130 trenches along seven main veins and 2.000 new samples have been taken and are now under processing. Additionally the Company is re-analyzing the results of the geophysical survey, which has done a few years ago. Besides, a specialized team is reviewing all the former geological information.

The exploration program has been designed and is under the supervision of Professor V. Polevanov, a well known gold expert and Member of the Academy of Science of Russia, applying internationally accepted exploration standards. The preliminary results of the ongoing exploration are very encouraging and confirm the results achieved in former works. Metallurgical tests have been favorable. The Company is estimating that the production costs could be close to US$ 150 per ounce of Au.

Eurasia Gold Fields Inc. is a mineral exploration company with gold projects in Russia. Its stock trades under "EUGD" on the OTC Bulletin Board in the United States of America.

ON BEHALF OF THE BOARD Jorge L. Lacasa President

This News Release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of the United States of America and section 21E of the Exchange Act of the United States of America. All statements other than statements of historical facts included in this News Release, are forward-looking statements. All statements concerning geological resources are also deemed to constitute to be forward looking statements to the extent that they reflect conclusions that may infer potential for further development or commercial viability. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable; it can give no assurance that such expectations will prove to have been correct. These forward looking statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from those projections; these risks include but are not limited to exploration, sampling, geological mineralization, accidents, breakdowns and political risk. All attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by the Cautionary Statement.