Vega-Atlantic Corporation Announces Independent Geologist Report On Lannitang Gold Deposit in China.

Business Editors

DENVER--(BUSINESS WIRE)--June 29, 2000

Vega-Atlantic Corporation ("the Company") (OTCBB:VGAA)(Frankfurt Exchange:VGA) announces the results of the independent geologist report of Mr. David Taylor dated June, 2000 on the "Lannitang" gold deposit from his site visit on May 20, 2000.

This property lies in the Ailaoshan Gold Belt Yunnan Province and is on the extension of the producing 2.2 million ounce Donggualing and Laowangzhai gold mine operated by Zhen Yuan County. The property is a one-day drive from Kunming, the Yunnan Provincial capital.

Tun Resources Inc. ("Tun Resources") is the major stakeholder in two gold exploration and development joint ventures in the Yunnan Province of China. Tun Resources, through its Sino-Foreign "Yuntong" joint venture, is conducting due diligence on the estimated 400,000 oz. gold resource (as calculated by the No. 3 Geological Brigade) that comprises the Lannitang gold project.

Previous geological work conducted by the No. 3 Geological Brigade on the Lannitang gold deposit include the following:

Lannitang Deposit ----------------------------------------------------------------- No of drill holes 41 Meters drilled 12,075 Tunnel length in meters 563 Drill indicated reserve 12.8 tonnes of gold Grade of gold, g/t 5.62 -----------------------------------------------------------------

The Company is continuing its due diligence of the Lannitang gold project, and independent geological report highlights are provided with excerpts from the report shown in quotation marks throughout this news release.

Introduction - "The property was inspected on May 20, 2000 in the company of Zhao Yinglong, Engineer and interpreter and He Wan Ju, Chief Geologist for Tun Resources in the Zhen Yuan area and retired Chief Engineer of the No. 3 Brigade of the Yunnan Bureau of Geology and Mineral Resources. Vega-Atlantic Corporation has joint venture interests in two other properties in the immediate area, Shangzai, which abuts to the west and Bianfushan, which lies 4 km. southeast. Recommendations to prepare for further exploration and for underground development of the deposit are made in this report."

Property -- "The Yuntong (joint venture) has got the exploration and development permit for Lannitang."

History -- "Lannitang was under license to the No. 3 Brigade of the Yunnan Bureau of Geology and Mineral Resources for surface oxide ore mining and basically worked out in the mid 90's. No. 3 Brigade also pattern drilled this ground in the late 80's and most of this report is based on a re-evaluation of the data compiled at that time. The Yunnan Yuntong Exploration Company Ltd. (Yuntong joint venture) and its associates have been working in the Zhen Yuan area for over five years and recognized the opportunity to develop the underground sulphide potential of Lannitang. Application was made for exploration and exploitation rights for this ground in April, 2000."

Regional Geology -- "Yunnan Province has a completely developed stratigraphy and a complex tectonic and magmatic history. The two major tectonic plates in Yunnan are the converging Indian and Burasian plates that have accreted to the Yangtze Platform. Within the confluence zone lie the micro Indo-China, Yunnan-Thailand and Yunnan Burma plates."

"A very deeply rooted suture line runs northwesterly in the Red River graben which is flanked to the southwest by the Ailaoshan belt of mountains (the Ailao Mountains) which host the Ailaoshan Gold Belt. The mountains are folded and faulted parallel to their northwesterly trend with development of intermediate to high grade metamorphism of residual Paleozoic (Silurian-Devonian) sediments, ophialites, and later granitic and basic-ultrabasic intrusions. Copper, nickel and platinum group deposits have been located in these systems as well as mylonitic, shear zone, and quartz vein gold deposits. In modern thinking terms, mesothermal low temperature hypogene deposits of diverse (including Yenshanian to Recent) ages are a feature of the Ailaoshan. Comparisons have been made between the Ailaoshan Gold Belt and California's Motherlode Belt."

"Regionally the Zhen Yuan area (the Ailaoshan Gold Belt) gold mineralization has been identified over 8 km. of length in the NW-SE direction. Individual gold mineralized zones are up to 1 km. long and 12-15 m. thick. Locally ore controls may vary but the shearing control, with widening in flexure features is obiquitous, host rocks, predominantly metasediments, may vary to lamprophyres, porphyry or ultra-basics. Iron carbonated dominate oxidized areas and pyrite is a common denominator in protore and is normally the main gold carrier."

"The gold is generally low-temperature and is associated with quartz-sericite and/or ankerite with pyrite or the iron oxides derived therefrom. The very fine grained nature of the gold makes it easily extractable by cyanide, particularly from oxidized material. Further testing should prove it to be extractable from the sulphides too."

Property Geology -- "The Lannitang mineralization is believed to be part of the structure that hosts the Donggualing one of Zhen Yuan Gold Mines and the southern area of Daqiaoqing. In the Lannitang area brittle fracturing and fault bends and flexures control much mineralization emplacement in the sandy or carbonaceous metasediments of the carboniferous Shaushanguan Formation. This Fm. contains a ductile shear zone between its upper and middle members. This structure is intruded by a fairly massive, mainly concordant "pyrolite" (hartzburgite?) ultra-basic intrusion with associated lamprophryres that is intimately associated with later Yenshanian (Himalayan) pyrite-gold mineralization."

"The ore zone at Lannitang occurs in two separate parts along the main structure, the North Zone which dips northwest at 30 - 40 degrees while the South Zone dips at 40 - 50 degrees to the southwest, steeping to 80 degrees at depth."

"Oxidized ore in both zones has essentially been removed over the last few years by surface mining operations, indeed one illegal operation was observed during the inspection. Extensive drilling conducted between 1989 and 1991 on both zones has defined 31 distinct gold mineralized zones, 18 of which are considered of sufficient size for economic development by the No. 3 Brigade. Total geological reserves of D and E estimated by Brigade are 2,316,743 tonnes of 5.62 g/tonne material containing 13.025 tonnes of gold at Lannitang. Of this 1.135 tonnes of 1.56 g/tonne material is unminable."

"Within the top elevation sections of the sulphide zones certain areas can be accessed by drifts from surface for bulk testing and mining purposed. The northern No. 1 zone can be accessed from the north for 400 m. at the 1350 m. level with a footwall drift portal at line 52. Such a drift would open 500 kg. of gold ore in the backs at 5.1-5.2 g/tonne for testing and development. The southern No. 2 zone is likewise open to access from its northern outcropping at 1400 m. at line 20 for a footwall drift of 600 m. length opening ground for bulk testing and mining containing 2.431 tonnes of gold above 1400 m. @ 7.42 g/tonne with a cut-off of 3 g/tonne."

"Although this 3 tonnes of gold represents less than a quarter of the total reserves of Lannitang it makes a very attractive target for very cheap mining while opening the ground for more complete evaluation at depth and developing the possibility of shafts or winzes to access the remaining 10 tonnes of gold estimated to be present in lower levels of the deposit."

Conclusions -- "With the development of the Zhen Yuan area gold mines attention has been refocused on the old work done on the Lannitang gold deposits. With improved cyanide extraction techniques for sulphide ors and improved logistics attention is now focused on relatively easily accessed underground reserves defined by 1989 - 1991 drilling on the Lannitang property."

"For very low capitalization exploratory drifts can be driven in to both the northern No. 1 and southern No. 2 mineralized zones with both drifts driven as footwall testing features, convertible to haulage drifts after testing to later production facilities. The drifts would also facilitate the up-grading of most of the overlying mineralization form D and E category material to B, C, and D grade and open underlying areas to shaft or winze development. Excellent facilities are available in both Kunming and Vancouver, Canada, to test the amenity of cyanidization for use as an extractive medium in the sulphide concentrates from Lannitang."

"Good millsites are available in the general area and logistics in terms of power, water, transportation and experienced labour are good. Some work is going to be needed to upgrade local access to the proposed portal sites at Lannitang."

"Given underground openings, no further surface drilling should be necessary on the Lannitang though some underground drilling may be necessary to upgrade the category of some of the deeper level mineralization."

"A side benefit of the above work may be development of sulphide ore potential on other properties in the Zhen Yuan area which Vega-Atlantic has interest in, namely the Shangzai and Bianfushan."

Recommendations -- "Lannitang offers a rather unique opportunity to develop a property whilst probably making a profit to cover research and development costs for a much larger financial target".

For further information contact Gary Powers at 800/209-2260 or 303/740-6737.

Safe Harbor Statement

Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, commodity prices of precious metals and actual results differing materially from projections because of geological factors, operation factors, government regulations or factors relied upon from independent sources, may either negatively or positively impact exploration or mining operations. Forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results in the future periods to differ materially from forecasted results. The Company assumes no obligation to update the information in this release.

Vega-Atlantic Corporation common stock is traded on the Frankfurt Stock Exchange (FWB) under the symbol VGA, and on the OTC Bulletin Board in the United States under the symbol VGAA.