MAXAM GOLD CORPORATION: Maxam Cancels Option to Sell Peoria South Ownership, Maxam withdraws effort to file SB-10, Maxam Reduction of Debt

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For Immediate Release

MAXAM GOLD CORPORATION: Maxam Cancels Option to Sell Peoria South Ownership, Maxam withdraws effort to file SB-10, Maxam Reduction of Debt

EAST PEORIA, ILLINOIS, Aug. 6 -/E-Wire/-- Maxam continues to evaluate all business opportunities involving the precious metals industry, as well as other businesses that may enhance the company's mission for success. The cash flow prospect from the precious metals market, at this time, is extremely low. Maxam's board of directors acknowledge these limitations and concur that growth for the company can only occur when these announced changes are instituted, and the company continues its discipline to maintain a minimal expense strategy. Peoria South Ownership

November 16, 1999 Maxam announced the signing of a Letter of Intent with Sigma Gold Mines, LTD to acquire Maxam's interest in Peoria South Mining, LLC. The conditions for the sale was a commitment of due diligence on the part of both parties. Since signing the Letter of Intent, two extensions were granted and both have now expired. Maxam has notified Sigma that no further extensions will be granted and the financial arrangements, including the note have been cancelled. After serious consideration, Maxam's Board of Directors decided this action was in the best interest of the company and is offering the property to other investors.

Fully Reporting Company Plans Withdrawn

Efforts for the past two-years for Maxam to file the appropriate SB-10 forms with the SEC for fully reporting corporation status have and continue to produce significant financial expense to the company. In light of the ever increasing costs of auditors and their liability insurance and associated legal fees it is anticipated the cost to prepare and file 3-10Q's, 1-10K and probably one or more 8K's could cost Maxam in excess of $100,000 a year. With the present lack of cash flow, the Board of Directors believes it prudent to withdraw this effort until cash flow is sufficient to maintain full reporting status.

Maxam Satisfies a Significant Debt

Maxam announced that it has satisfied over $3.6 million of the current debt to two creditors by assigning ownership of 1,015,230 "Restricted" shares of Black Mountain Gold common stock to satisfy these obligations. Maxam will continue its efforts toward settling debt obligation with remaining creditors.

FORWARD LOOKING STATEMENT

Information on this page represents best efforts of the Maxam Board. Statements contained herein, or elsewhere, are based on current expectations and are considered Forward Looking. Maxam management is optimistic about Maxam's long range prospects, but actual results could differ materially. The following issues and uncertainties, and others, must be considered in evaluating growth outlook: changes in technology, investment cycles, other economic anomalies, prices of metal, cost of revenues, sales and marketing successes, competitive issues, litigation, environmental issues, and other governmental changes and considerations.

MAXAM GOLD CORPORATION

http:///www.maxamgold.com

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