Zenda aquires the Dutch Flats property in Nevada's prolific Getchell Trend.

TORONTO--(BUSINESS WIRE)--Feb. 17, 1997--Zenda Gold Corp (CANADIAN DEALING NETWORK ZNDA.) The Dutch Flats property acquisition is the first 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 income from the Zenda Mine, where heap-leach 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. The Paramount property is on trend with several deposits that exceed 1,000,000 ounces of gold.

The 1600 acre Dutch Flats property is located on the Getchell Trend, east of the producing Twin Creeks, Getchell and Pinson mines. The property is located in the Hot Spring Range and contains several bulk tonnage exploration targets, including range front targets and extensions of existing gold mineralized zones. The Dutch Flats property is underlain by the sedimentary rocks of the Harmony Formation. Gold mineralization occurs in sedimentary rocks that are predominantly oxide and exhibit metallurgical properties that are suitable for heap-leach operations. Historical gold workings, including numerous shafts, adits and pits located throughout the property, have potential for large low-cost mining operations. The property is easily accessible from Highway No 95 north of Winnemucca, NV.

Acquisition terms are US$10,000 on signing, $20,000 in 6 months and $10,000 on the first anniversary date of signing. $20,000 will be due on the second anniversary, $25,000 on the third anniversary and $50,000 on each subsequent anniversary date to a maximum of $500,000. The Vendors are to receive 100,000 shares of Zenda over the 18 month period following signing and 100,000 shares upon completion of a positive feasibility study and will retain a 3.5 percent NSR which be reduced to 1.5 percent once $3 million in royalties have been received.

THE DUTCH FLATS ACQUISITION BRINGS TOGETHER TWO SEPARATE LAND PACKAGES WITH MULTIPLE TARGETS.

The presence of oxidized mineralization and large geological structure are attractive for exploration of bulk tonnage gold deposits. Previous work by companies such as Homestake and Amax generated attractive exploration targets which could not be realized until the current property package was assembled.

Several exploration targets have been identified, including the EL PASO AREA, CENTRAL ZONE, NORTH EXTENSION AND SOUTH EXTENSION. Previous exploration in the El Paso Area indicates 10 million tons of low grade gold mineralization. Results from exploration on the Central Zone returned grab assays of 1.79 opt gold and 0.054 opt gold in the north end of the zone and up to 0.022 in the south end.

Grab samples taken from the North Extension include 0.665 opt gold near the Belmont Shaft and 1.85 opt Au just south of the access road. This area has seen limited exploration despite encouraging surface results. There is potential for a high grade, bonanza (Sleeper Mine Vein Type), vein system.

Encouraging gold samples on the South Extension were taken just above a 450ft long adit driven into shale and sandstone of the Harmony Formation. There is potential for a bulk tonnage target in quartz stockwork hosted ibn sediments related to intrusive bodies. Encouraging surface values, together with a drainage system that has produced significant gold, indicate prime targets for additional exploration work.

Previous exploration work on the Dutch Flats property has focused on a small area with numerous other encouraging targets receiving limited or no attention. Further exploration is required including A first phase of geological mapping, rock and soil geochemistry and Limited geophysics prior to a drill program.

EXPLORATION WORK WILL BEGIN IN APRIL 1997 AND FOCUS ON THE POTENTIAL DRILL TARGETS.

CONTACT: Zenda Gold Corp

Tim Campbell, 416/368-9512

416/ 368-1539 (FAX)