Golden Knight - first phase of large gold mine at Tarkwa viable.

VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--Aug. 23, 1996-- Golden Knight Resources Inc. reports that a feasibility study has confirmed the viability of open-pit mining at the Tarkwa Concession in Ghana. Gold Fields of South Africa Limited holds a 70 percent interest in Gold Fields Ghana Limited which holds the rights to the concession. Golden Knight currently holds a 5 percent interest in Gold Fields Ghana which will increase to 17.5 percent, subject to financing and regulatory approvals.

At December 31, 1995, measured gold resources at Tarkwa totalled 324.2 million tons grading 0.040 ounces of gold per ton, or 13 million ounces of gold. These resources are located within five areas at the southern end of the property. The feasibility study focused on gold resources in three of the five areas, based on an annual mining rate of 4.0 million tons, later increasing to 8.0 million tons from the three areas.

On August 20, GFSA released an announcement of results for the year ended June, 1996, which contained the following information on the Tarkwa project: "The feasibility study on the new surface mine has confirmed the viability of the initial project which will now proceed. The timing is subject to the successful conclusion of the agreements with the remaining owners of properties adjacent to the ore bodies and the normal government permits and mining title being issued. Good progress is being made on these matters.

"The first project is based on mining 142 million short tons of ore at an average head grade of 0.037 ounces per ton and a stripping ratio of 2.25. The ore production and heap leach processing rate will be progressively increased up to 8 million short tons per year with an annual gold production of 230,000 ounces. The average cash cost over the first five years is expected to be US $210 per ounce and the capital cost to be US $125 million excluding inflation and contingencies. Financing arrangements will be announced in due course.

"A prefeasibility study to ensure the optimal development of the full measured resource of 324 million short tons at 0.040 ounces per ton (13 million ounces) is well advanced. The study includes further increases in production rates which enhance the overall project."

On August 19, 1996, Golden Knight announced the acquisition of a 12.5 percent interest in Gold Fields Ghana Limited for US $47 million, plus future consideration for additional reserves and resources outlined through exploration. Nesbitt Burns Inc. is the lead underwriter of a syndicate which is raising equity for the transaction.

Golden Knight Resources Inc. is a Canadian-based gold production and exploration company with operations and projects in Canada and West Africa. The company holds a 40 percent joint venture interest in the Casa Berardi gold mine in Quebec, and has interests in 13 concessions in Ghana and two in Burkina Faso. An advanced gold exploration program, which includes 15,000 metres of reverse circulation drilling, is now under way in the Manso Nkwanta region of Ghana where Golden Knight and Leo Shield Exploration NL, its 50/50 joint venture partner, have interests in five concessions.

NOTE: Location map available from the Company at the phone number

listed above.

CONTACT: Golden Knight Resources Inc.

Robert A. Quartermain, 604/689-3846

R.E. Gordon Davis, 604/689-3846