NZ acquires more uranium resources.

PHOENIX--(BUSINESS WIRE)--Sept. 19, 1996--New Mexico and Arizona Land Co. (AMEX:NZ), has signed a contract for the purchase of a 10,000 acre ranch which contains a major deposit of uranium.

Located in the Tallahassee Creek area of Colorado, the uranium deposit was formerly known as the Hansen Ore Body. Previous studies by independent consulting geologists have indicated that the Hansen deposit contains up to 25 million pounds of uranium oxide equivalent. A major portion of this uranium mineralization occurs in two thick pods, together, covering only about 40 acres.

Bill Pope, chief executive officer, commented that the planned acquisition will be a significant step toward augmenting NZ's traditional asset bases in uranium and rural lands -- both of which are currently experiencing favorable price trends.

He also said that the mineral rights would be purchased by NZU Inc., a wholly owned subsidiary, while the majority of the surface estate would remain with NZ for future development.

J.D. Sphar, vice president -- Minerals, further commented that the initial focus for possible development of the uranium would be on the potential for environmentally benign in-situ leach (ISL) mining. In this regard, he noted that the deposit has several economically attractive characteristics for ISL mining.

These include good mineralized thicknesses at modest depth and in sediments saturated with water of such poor chemical quality as to be unsuitable for other uses. He said that a large number of technical reports and a considerable amount of technical and environmental data is available from prior plans for a large mine-mill complex on the property.

NZ, incorporated in 1908, is the longest traded company on the American Stock Exchange, which is celebrating its 75th anniversary.

CONTACT: New Mexico and Arizona Land Co., Phoenix

J.D. Sphar, 505/881-6644; fax [phone]

E-mail: [e-mail]