Viceroy Completes Conditions for the Forbearance Agreement.

Business Editors

VANCOUVER, B.C.--(BUSINESS WIRE)--Oct. 26, 2001

Viceroy Resource Corporation ("Viceroy") (TSE:VOY.) announces that it has satisfied prior conditions and delivered the required consideration and documents in accordance with the Forbearance Agreement, previously executed August 31, 2001, with NM Rothschild & Sons (Australia) Limited ("Rothschild") and Macquarie Bank Limited ("Macquarie").

The Forbearance Agreement relieves Viceroy and its North American subsidiaries of their obligations under agreements guaranteeing certain borrowings and hedging arrangements relating to the Australian operations.

Under the settlement arrangement the total common shares issued by Viceroy has increased by 23,000,000 to 80,664,745 common shares and Viceroy has relinquished its equity position in NovaGold Resources Inc. Rothschild has become a significant shareholder of Viceroy holding approximately 19.7% of the issued common shares. Under the terms agreed to with the Toronto Stock Exchange, Rothschild's interest will be under escrow and only 10% of the position can be voted under normal events.

The voluntary administration of Viceroy's Australian subsidiaries, Viceroy Australia Pty Ltd. ("Viceroy Australia") and Bounty (Victoria) Pty Ltd. ("Bounty") is continuing following adoption on September 21, of a Deed of Company Arrangement that provides for the Administrator to extend the creditor moratorium for a further six months, allowing the Administrator to continue discussions with third parties regarding restructuring proposals which may result in an improved return to creditors. The Bounty Mine continues to operate and Viceroy believes that the finalization of the agreement with Rothschild and Macquarie will significantly assist in the restructuring of the Australian assets while further enhancing Viceroy's ability to pursue new business opportunities.

Under the Forbearance Agreement, Viceroy and its North American subsidiaries are relieved of all obligations under the Rothschild and Macquarie guarantees, while Viceroy retains upside in the event the value of the consideration achieved for the North American plus the Australian assets exceeds the total amount guaranteed under the original facility and hedging agreements. Viceroy is the largest unsecured creditor of Viceroy Australia and Bounty as well as having the right to be subrogated to certain other creditors if those creditors are paid in full.

Viceroy Resource Corporation is a gold producer with operations in Canada and the United States. Viceroy's shares, trade under the symbol "VOY" on the Toronto Stock Exchange.

Statements contained in this news release that are not historical facts are forward-looking statements that involve various risks and uncertainties which are detailed under the heading "Risk Factors" in Viceroy's Annual Information Form filed with the securities commissions of Ontario, British Columbia, Alberta, Quebec and other regulatory authorities. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. All subsequent written and oral forward-looking statements attributable to Viceroy or persons acting on its behalf are expressly qualified in their entirety by this notice.