Pure Gold Update.

VANCOUVER, British Columbia--(BUSINESS WIRE)--May 21, 1997--Pure Gold Resources (TSE:PUG.)

ALBERTA Edmonton area claims acquired - approximately 9.3 million acres

Increasing its position in the Alberta diamond play, Pure Gold has acquired a 50 percent interest in claims in and around the Edmonton area.

The Edmonton Project is strategically located in what is believed to be a kimberlite/lamproite province, which makes it an excellent target area for diamondiferous kimberlite pipes. Both airborne and ground geophysical survey and interpretation of the glacial geomorphology is considered essential in this program. The project area contains concentrations of kimberlitic indicator minerals and diamonds in till and gravel samples.

The eastern section of the project area is underlain by a covered Archean craton of the Hearn Province which is prospective for kimberlitic intrusions. An experienced geophysicist is currently compiling geophysical data from the project area. The 50 percent interest was acquired for a purchase price of $106,000. The property is subject to a 2 percent Gross Overriding Royalty in favor of the staker.

Buffalo Hills Joint Venture

Pure Gold's joint venture partner on the Buffalo Hills Property, Ashton Mining, recently announced micro and macro diamond results. Results from four additional pipes are expected within the next few weeks. Many geophysical anomalies similar to those over the pipes found so far remain to be drilled. Work on some of these anomalies will commence in June, along with further examination of those pipes already defined.

NORTHWEST TERRITORIES Roundrock Property

A follow up exploration program is planned for the Roundrock Property, in the Northwest Territories during the summer exploration season. The Roundrock Property is part of a package of claims purchased from Star Resources (formerly known as Texas Star). Pure Gold initiated the deal with Ashton Mining of Canada Inc. ("Ashton"), by introducing Lytton Minerals Ltd. ("Lytton") to Ashton. A joint venture has been formed under the following terms: -0-

Ashton       51   percent
Pure Gold    24.5 percent
Lytton       24.5 percent

During last year's exploration program a total of 279 samples were collected on the property during the spring and summer of 1996. Processing was completed during the month ending December 31, 1996. Ashton also obtained 654 samples from Canamera Geological Ltd. for the purpose of re-observation on the basis of their location on the current Roundrock Lake claim package.

The most significant result from the 1996 sampling program is the delineation of an indicator dispersion train 1.6 km north of the Aquila kimberlite. The train is defined by samples anomalous in picroilmenite, pyrope, chrome diopside and olivine. Another trend, with a similar mineralogy, is becoming apparent five kilometres northeast of the Aquila area. Here, anomalous 1996 Ashton samples coincide with new results from re-observed Canamera samples. Three to five kilometres south and southeast of the Aquila pipe, there are additional anomalous trends which contain mineralogies distinct from known kimberlites on the property.

Proposed 1997 Program

The discovery of the diamondiferous Aquila kimberlite and an associated fissure system, clearly indicates the potential for additional kimberlites on the Roundrock property. Results from 1996 samples and new data from the re-observed samples have outlined several areas on the property that will require intense follow-up in 1997.

A high-resolution magnetic and EM survey will be flown over a six km area north of the Aquila kimberlite. Any targets identified will be confirmed through ground geophysical surveys and additional detailed heavy mineral sampling. A subsequent drill program scheduled for late June, will test priority targets and recover an additional one to two tonnes of material from the Aquila kimberlite for further diamond testing. A 100 sample follow-up program is proposed in order to increase sample density on the Roundrock Property and test weaker anomalous trends. The anticipated cost of the 1997 exploration program is approximately $450,000.

After spending in excess of $1 million in exploration expenditures on the claims, Ashton has vested its 51 percent undivided interest in the property.

ONTARIO Hoyles Bay

The Placer Dome operated winter drill programme in Bateman Township was completed during the month of April. As part of this programme, approximately 1780 metres of core drilling, in eight holes, were drilled on the Hoyles Bay property optioned from Pure Gold Resources Inc. The holes were targeted on a magnetic low within the East Bay Serpentinite (possibly representing a zone of alteration) and the western contact of the serpentine unit with the adjacent mafic volcanics. Assaying of core is in progress.

Placer Dome Canada will be making the option payment due June 1, 1997 to maintain the option agreement.

On behalf of Pure Gold Resources Inc.

Donald R. Sheldon, President

CONTACT: Pure Gold Resources Inc.

Carina Bittel, 604/682-1240