Mare Gold Mine

GOVERNMENT APPROVAL GIVEN TO RECOMMENCE TAILINGS RETREATMENT PROJECT AT BAIA MARE, ROMANIA. NEW DIRECTORS FOR JOINT VENTURE COMPANY.

The Administrators of Esmeralda Exploration Limited report that Aurul S.A. has received approvals from government and environmental authorities and strong local support to recommence operating the tailings retreatment project at Baia Mare (see attached media release).

Esmeralda Exploration Limited owns 50% of the shares in Aurul S.A.

Aurul has reviewed the various options and believes that this is the best outcome for all stakeholders in Baia Mare. The company has decided to recommence operations on 13 June 2000 for the following reasons:

1.The Aurul project was established as an environmental clean up operation - there is a continuing need to fulfil this role.
2.The company will be better placed to proactively manage any environmental issues with the project up and running, than by suspending or discontinuing it.
3.The people of Baia Mare have indicated in the strongest terms that they support and expect Aurul to resume operations.
4.All appropriate reviews have been undertaken and conditions imposed upon start-up by regulatory authorities have been satisfied.

In preparation for the start-up, new directors have been appointed to Aurul.

The three Esmeralda directors on the Board of Aurul - Mr James Taylor, Mr Max Montgomery and Mr Brett Montgomery - have resigned. They have been replaced by Esmeralda representatives, Mr Martyn Churchouse, Managing Director, Mr Ioan Hudroa, former Director General of Remin (the local joint venture partner in Aurul), and Mr Kim Strickland of accountants Hall Chadwick (the Administrator of Esmeralda).

A management team led by Mr Churchouse, Mr Hudroa and Mr Iuliu Chioreanu (Operations Manager) has been appointed to Aurul to maintain and operate the project.