United Park City Mines Co. Announces the Termination of Joint Venture Agreement and Intention to Proceed with the Development of Flagstaff and Bonanza.

Business Editors

PARK CITY, Utah--(BUSINESS WIRE)--Jan. 17, 2001

United Park City Mines Co. (NYSE:UPK) Wednesday announced the termination of its joint venture agreement with Scottsdale, Ariz.-based DMB Inc., and is proceeding with the development of the 1,655-acre Flagstaff Mountain Resort and the 1,700-acre Bonanza Mountain Resort projects.

UPCM President Hank Rothwell, stated that UPCM has great respect for the development expertise of DMB and its executive staff, but it became apparent that UPCM and DMB had significant differences regarding the business and financial plan for the Flagstaff and Bonanza projects. Accordingly, the joint venture was terminated.

During the past year considerable progress has been made in the approval process for the projects. In 2001, UPCM will continue to work with the Park City and Wasatch County planning staffs towards finalization of the development plan. UPCM also expects this year to commence the construction of the road and utilities infrastructure.

"The Flagstaff and Bonanza design is world class and will reflect a magnificent ski-in, ski-out residential community in a pristine natural setting that will equal or surpass any in America," said Rothwell. "Our design team remains largely intact, so we do not anticipate losing time in the progress of these projects."

Flagstaff Mountain Resort is a 1,655-acre development envisioned as an extension of the present Deer Valley Resort community. The project, which received master plan approval and was annexed into Park City in June 1999, will be consistent with the objectives outlined in the master plan approval.

Through careful planning, the build-out will be highly clustered, retaining over 90 percent of the Flagstaff development as open space. Flagstaff's outstanding design which emphasizes common architectural themes, and miles of dedicated public trails, employee/affordable housing, and mass transportation alternatives ensures a project compatible with the Park City community.

Flagstaff's sister project, Bonanza Mountain Resort, is a 1,700-acre development located in neighboring Wasatch County. Bonanza Mountain Resort will be a natural extension of the Flagstaff Resort, with similar quality design features and land uses.

The design for the Bonanza Resort also includes public access to high alpine locales as well as employee/affordable housing alternatives within Wasatch County. UPCM has filed applications with Wasatch County for master plan approval of the Bonanza Mountain project.

The development plans for Flagstaff and Bonanza open up UPCM's private lands for the use and enjoyment of the citizens of Park City and neighboring Wasatch and Summit Counties.

United Park City Mines Co., founded in 1953, as the successor in interest to business interests initiated in the 1860s, owns, develops, leases and sells real estate located in or near Park City.

UPCM built the first skiing facility at the Park City Mountain Resort in 1964, and has been a community benefactor and active force in the Park City community for over a century sponsoring and contributing to various public events and charities including the annual Miners' Day and the Olympics.