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ROYAL OAK ENTERS INTO AGREEMENT TO PURCHASE HOPE BROOK MINE

 ROYAL OAK ENTERS INTO AGREEMENT TO PURCHASE HOPE BROOK MINE
 VANCOUVER, British Columbia, Dec. 18 /PRNewswire/ -- Royal Oak Mines Inc. (AMEX, Toronto: RYO) announced today that it has entered into a letter of intent with Hope Brook Gold Inc., a subsidiary of BP Canada Inc. (Toronto, Montreal, Vancouver: BPC), to purchase all of the assets of Hope Brook Gold Inc. The assets include the mine, milling facilities, supply boat, site inventory and all mineral rights. In exchange for the assets, Royal Oak will issue to the seller 5.5 million common shares of Royal Oak together with a five- year operating royalty payable only when the Hope Brook Mine is operating and at gold prices above U.S. $380. Royal Oak will also assume other liabilities only repayable at gold prices in excess of U.S. $500 per ounce.
 Completion of this acquisition is subject to regulatory approval, a definitive purchase agreement, completion of due diligence, receipt of acceptable environmental permits and satisfaction of other labor and government-related issues.
 In 1990 the Hope Brook Mine produced 110,460 ounces of gold and Hope Brook currently reports gold reserves of 1.189 million ounces. Royal Oak has evaluated the project and has determined that cost savings resulting from changes to the mining and milling methods will make the Hope Brook Mine economic at current gold prices with minimal capital expenditures.
 The acquisition of the Hope Brook Gold Mine will increase Royal Oak's annual gold production by 60 percent to approximately 320,000 ounces of gold per year and mineable reserves by 85 percent to approximately 2.6 million ounces. Royal Oak has developed an operating plan to re-open the Hope Brook Gold Mine by the summer of 1992.
 ScotiaMcLeod Inc. is acting as financial advisor to Royal Oak in these negotiations.
 -0- 12/18/91
 /CONTACT: J. Graham Eactoo of Royal Oak Mines Inc., 604-682-8320; or James B. Clubb of Clubb Associates, 011-071-490-5558, for Royal Oak/
 (RYO. BPC.) CO: Royal Oak Mines Inc.; BP Canada Inc. ST: British Columbia IN: MNG SU:


KJ -- LA020 -- 3653 12/18/91 19:17 EST
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Publication:PR Newswire
Date:Dec 18, 1991
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