RE: Nova Beaucage Acquiring Interest in Gold Producing Ecuadorian Company.

TORONTO--(BUSINESS WIRE)--June 5, 1996--NOVA BEAUCAGE MINES(CANADIAN DEALING NETWORK: NBAM ) Nova Beaucage Mines Limited ("Nova Beaucage" or the "Company") announces that it has agreed to acquire all of the shares of a private Ontario company ("Privco") whose main assets will consist of approximately $1,250,000 in cash and an option to acquire up to 40 percent of an Ecuadorian company over a period of two years.

The Ecuadorian company owns and operates a producing gold mine located in the Nambija region of the province of Zamora-Chinchipe in Southern Ecuador. The area presently being mined, which comprises less than 10 percent of the total property, produces approximately 9,000 ounces of gold per annum at the rate of 40 tons per day. Because of the primitive mining and extraction process presently employed, only ore containing 0.50 ounces or more of gold can be mined. Recent sampling carried out in one of the sections of the mine indicated values of 0.28 ounces of gold per ton over a distance of 40 metres or 132 feet. Within that section, 7.0 metres, or 22 feet, yielded results of 16.0 grams, or approximately one-half ounce per ton. It is estimated that there are probable reserves of at least 5 million tons carrying a minimum grade of 0.20 ounces of gold per ton. There are also indications that the ore zone continues well past the section sampled. Samples taken from the undeveloped part of the property were also found to carry economic gold values.

The Ecuadorian company also owns a 150 tons per day carbon in pulp gold extraction plant built in 1991 and located within 3 kilometres from the mine site. The mill was only used for a short time and appears to be in excellent condition and should be able to be reactivated within a few months.

The transaction contemplates the issuance of shares and units to the shareholders of Privco resulting in those shareholders owning approximately 81 percent of the then issued and outstanding shares of the Company and existing shareholders of the Company owning approximately 19 percent. There will be no change in management or in the board of directors of the Company.

To acquire a 30 percent of the Ecuadorian company, Privco and/or Nova Beaucage will make the following payments: a non-refundable payment of U.S. $350,000 for a three month option; a second payment of U.S. $1,150,000 payable in three months; a third payment of U.S. $500,000 payable in six months; and a final payment of U.S. $500,000 payable in twelve months. The Company will have an option to acquire an additional 10 percent of the Ecuadorian company, which option is to be exercised within one year of making the final payment of acquire its 30 percent interest at a price to be determined by an independent engineering evaluation.

Canuc Resources Inc. of Toronto, Ontario, will also have an option to acquire 30 percent of the Ecuadorian company with an option to acquire an additional 30 percent.

The transaction is subject to the entering into formal documentation, completion of outstanding due diligence, approval by the shareholders of the Company at its annual and special meeting of shareholders which will be held on July 15, 1996, and receipt of all requisite regulatory approvals.

Canadian Dealing Network has indicated that trading in the shares of the Company will not resume until after the Annual and Special Meeting.

The Board of directors is also considering recommending to the shareholders a consolidation of the common shares of the Company.

CONTACT: Nova Beaucage Mines Limited

Hubert Mockler, 416/363-4477, 416/363-1902 (Fax)

or

Nova Beaucage Mines Limited

France Crawford, 416/862-0887, 416/862-2204 (Fax)