Vega-Atlantic Corporation Announces Independent Geologist Report Update On Bianfushan and Shangzai Gold Deposits in China.

Business Editors

DENVER--(BUSINESS WIRE)--July 6, 2000

Vega-Atlantic Corporation ("the Company") (symbol Frankfurt Exchange: VGA; symbol OTCBB: VGAA) announces the results of the independent geologist report of Mr. David Taylor dated June 25, 2000 on the China located "Shangzai" and "Bianfushan" gold deposits from his site visit May 20-21, 2000.

The Company owns an 80% interest in Tun Resources Inc. ("Tun Resources"), which 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 currently in the mine construction phases of its Shangzai gold deposit, and has plans to place its Bianfushan gold deposit into production in the first quarter of 2001. The fully permitted Shangzai gold deposit is scheduled to be in production this October, providing Vega-Atlantic with its first producing mine interest before year-end. The two concessions contain a 100,000 ounce gold resource with other claim areas providing further strong exploration potential.

A June 25, 2000 Addendum Report to the January 29, 1999 report conducted by independent geologist, Mr. David Taylor, on the Shangzai and Bianfushan gold deposits has been commissioned. Independent geological report highlights are provided with excerpts from the report shown in quotation marks throughout this news release.

-- "Introduction" -- "Since the writer's (David Taylor) report of

January 29, 1999 and his visit to the Zhen Yuan area on May

20-21, 2000, work has continued on the Bianfushan and Shangzai

properties. During the May, 2000 visit, meetings were held

with Mr. He Wan Ju, Chief Geologist of Yunnan Yuntong

Exploration Company Ltd., as to the status of this work, but

(at the time of that meeting) Mr. He had not received his

assay results. Mr. He has (subsequently) on June 20, 2000,

forwarded his maps and (assay) results of the limited work

conducted on these properties in the last 18 months."

-- "Shangzai" -- "Since February, 2000, Shangzai has received

steady attention. Over 540 meters of trenches (8 trenches) and

149 meters of pits (13 pits) with 60 meters of branches have

been dug. 201 total samples have been taken and analyzed

during this work. Local access roads are under construction to

facilitate mining; this access will also provide access for

the recommended diamond drilling of the deeper mineralization 

at Shangzai."

-- "Sections have been received from line 27 to 39 on 20 m.

spacings (except 37) showing the latest pre-production

trenching, pitting and assays. It is expected that a 1 g/tonne

Au cutoff will be applied to feed for the leaching operations

and it can be seen that several significant sections of 6-8

g/tonne material are evident in sections 33, 31, and 29. The

estimate of He Wan Ju, the chief site geologist is that the

reserves above the elevation of the main access road (up to 25

m.) contain 569,430 tonnes of leachable ore at 5.44 g/tonne

containing 309.82 kg (9,961 troy ounces) of gold; this

includes 9,970 tonnes of uneconomic rock at 1.35 g/tonne

containing 13.48 kg. of gold. Applications have been submitted

and plans are being finalized to bring this area into

production as soon as possible."

-- "Bianfushan" -- "Results have been received from a 40 m.

cross-cut or vein drift and 30 m. of sub-drifting on the No. 5

ore zone at Bianfushan. The plan shows a 1.5 m section of

mineralization at the 20 m. underground sub-drift that ran 1.4

g/tonne of Au, and 5m. of 11.25 g/tonne Au is noted in the 40

m. subdrift, all within the fault identified as F-33. The

trench above the cross-cut gave an assay of 6.16 meters of

5.01 g/tonne Au. It is planned to extend the cross-cut further

into the fault zone by at least another 40 meters and also to

place new exploration drifts at 40 m. intervals above the

current workings. Four such new adits are planned."

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.