NFX Announces Private Placement, Adds Weisser/Lehmann Joint Consulting Group to Exploration Management Team.

TORONTO--(BUSINESS WIRE)--June 12, 1998--NFX Gold Inc. (CANADIAN DEALING NETWORK:NFXG.) NFX Gold Inc. (NFXG-CDN) announced today that it is proceeding with a maximum issuance of 2.0 million units, at a price of $0.90 per unit, for gross proceeds of $1.8 million. It is proposed that each unit will consist of one common share and one-half common share purchase warrant, each whole warrant being exerciseable to acquire one additional common share of NFX at a price of $1.25 for eighteen months from the closing date. The private placement is subject to regulatory approval.

NFX intends to use the proceeds raised from the private placement to advance its exploration and development program at its main asset, the Cheminis property which is located on the prolific Larder Lake break in northern Ontario.

NFX is also pleased to announce that it has retained the services of the J.D. Weisser/B. Lehmann Joint Consulting Group. The principals of the consulting group, Professors Dr. Johannes D. Weisser and Dr. Bernd Lehmann, both have extensive experience in mineral exploration and technical evaluation.

In his capacity as a Senior Geologist over a period of twenty five years, Professor Weisser has evaluated exploration projects worldwide. Additionally, Professor Weisser held the positions of Chairman of the European Mining Associates (Brussels), Vice Chairman of the Mines Metal Working Group at Euromines (Brussels), Chairman of the Mineral Raw Materials Committee at the German-Russian Cooperative Council (Bonn), and Professor at the University of Heidelberg, Germany.

Since obtaining his PhD in geology in 1979, Professor Lehmann served as a Research Associate at Harvard University and worked for several years in exploration projects in Africa and South East Asia. He additionally served as a Professor of Economic Geology at the Free University of Berlin, and became Chair of Economic Geology at the Technical University of Clausthal in 1992.

"The addition of the Weisser/Lehmann consulting group will greatly enhance the technical aspects of the exploration program and result in the accelerated advancement of the Cheminis and Barber Larder projects where a new phase of diamond drilling has just commenced," states Thomas Larsen, President and CEO of the Company.

CONTACT: NFX Gold Inc.

Thomas G. Larsen, 416/360-8006 or 1 [phone]

416/361-1333 (FAX)

or

NFX Gold Inc.

Jorge Estepa, 416/360-8006 or 1 [phone]

416/361-1333 (FAX)