ZENDA Acquires Claims Near Florida Canyon in North Central Nevada.

TORONTO--(BUSINESS WIRE)--March 10, 1997--(CDN:ZNDA)

The Zenda Florida Canyon Property is located on the range front of the Humboldt Mountain range at the western end of the Getchell Trend. The new property is located one mile from the 200,000 ounce per year Florida Canyon Mine owned by Pegasus Gold.

The Zenda Gold property is structurally located on the north-east extension of the range front fault which hosts the Florida Canyon Mine. Range front faulting of sedimentary rocks are identified at surface. Grab samples taken from two prospective rock packages on the property are reported at .04 and .06 ounces gold per ton.

Reserves at the Pegasus mine are 1,400,000 ounces of gold and increasing. Pegasus has been expanding the mine to the north- east in the direction of the new Zenda property. Several mining analysts have suggested that the Pegasus reserves could double or triple. Continued exploration by Pegasus is focusing on mineralized structures along the range front trending towards the Zenda property. Pegasus holds the property around three sides of the new Zenda property.

The Grass Valley formation underlies the property and the neighbouring Pegasus mine. Examination of old prospect pits along the range front fault shows distorted and altered shales with quartzite beds, quartz veining and brecciation on the Zenda property. Calcarious sandstone beds were also noted close to the southern portion of the claims.

The new eight claim property is a two hour drive, 100 miles east of Reno, Nevada on the south side of US Interstate 80. Zenda has acquired a 100 percent interest in the mineral claims for annual lease payments of US$15,000 and 100,000 common shares of Zenda Gold Corp. to be issued over a period of 18 months. The property is subject to a 3 percent Net Smelter Royalty which can be bought out at the rate of US$250,000 per percentage point.

The Florida Canyon property acquisition is the most recent in the Company's plan to acquire new properties with attractive exploration potential. Property acquisitions and early stage exploration programs are to be funded by the company's royalty interest in the Zenda Mine, where gold production is scheduled to begin in November 1997.

Zenda's Paramount property, located in the Aurora Trend south of Reno, Nevada, will be drilled this summer to increase the 280,000 ounce gold resource delineated to date. Located in the Aurora Trend, the Paramount property is in close proximity to neighbouring multi-million ounce deposits such as the Bodic Hills Mines and the Aurora Mines. First stage exploration work is scheduled to begin this April on the recently acquired Dutch Flats property, situated on the Getchell Trend in north central Nevada.

A preliminary exploration program of the Florida Canyon property consisting of mapping, sampling and trenching is planned to begin during the summer of 1997 to identify drill targets.

CONTACT: Zenda Gold Corp

Tim Campbell, 416/368-9512