Newmont and BMG Merge!

June 21, 2000

DENVER, PRNewswire-- Newmont Mining Corporation (NYSE: NEM) and Battle Mountain Gold Company (NYSE: BMG) have entered into a merger transaction under which Battle Mountain will become a wholly-owned subsidiary of Newmont Mining. Each of Battle Mountain Gold's 230 million shares of common stock and exchangeable shares will be exchanged for 0.105 share of Newmont common stock. The transaction will be accounted for as a pooling of interests. The combination will consolidate the two companies' strategic land positions in Nevada and generate company-wide sustainable cash savings of approximately $30 million a year. The transaction is immediately accretive to Newmont shareholders in terms of reserves, production, earnings and net asset value. It is cash flow neutral until Battle Mountain's Phoenix project is in operation and accretive thereafter.

The transaction is also accretive to Battle Mountain Gold's shareholders in terms of cash flow, earnings and net asset measures. Based on closing stock prices on June 20, 2000, Battle Mountain shareholders will receive a 25 percent premium, retain their leverage to the gold price and have an interest in a larger, more liquid and financially stronger company. The transaction is expected to be completed this Fall, following customary regulatory approvals and approval by Battle Mountain Gold shareholders. Noranda Inc., which owns 28 percent of Battle Mountain, has agreed to vote its shares in favor of the merger. "After a thorough review of the Phoenix project, which is the prime attraction for us, we concur with Battle Mountain Gold's management that it is one of the best undeveloped gold properties in North America," said Ronald C. Cambre, Newmont's chairman and chief executive officer. "Located within 30 miles of Newmont's Lone Tree complex, Phoenix provides an excellent fit with our Nevada infrastructure. We also acquire attractive, low-cost assets in Canada, Bolivia and Australia and will have the opportunity to broaden our workforce through the addition of talented people from the Battle Mountain Gold organization." "This merger presents an outstanding opportunity for Battle Mountain Gold shareholders to participate in one of the strongest and largest precious metals producers in the industry," said Karl Elers, Chairman and Acting CEO of Battle Mountain.

"Both companies contribute low operating costs, high quality reserves and major operations that will complement each others' infrastructure in Nevada." Newmont will proceed aggressively with permitting, development and further exploratory drilling on the Phoenix property, which had year-end reserves of 5.7 million ounces of gold and 430 million pounds of copper.

The company believes the project, as well as Battle Mountain's adjacent land holdings, has the potential for a significant increase in reserves. With permitting expected to be finalized by mid 2001, the mine and a leach operation could be in production by early 2002 with the start-up of a 30,000-ton-per-day mill a year later. Production is estimated to average 390,000 ounces of gold, 1.35 million ounces of silver and 27.5 million pounds of copper a year. Current reserves indicate a minimum mine life of 13 years.

Synergies and opportunities from the merger include:

-- Capital savings of $25 million to $30 million from the use at Phoenix of surplus mining equipment from the Mesquite mine in California and Mule Canyon in Nevada, where deposits are being mined out.

-- Processing the gold/copper concentrate from Phoenix through Newmont's Lone Tree autoclave, thereby eliminating smelting costs, reducing transportation charges and increasing recovery rates for gold and copper.

-- Application of Newmont's Gold Medal Performance program and global purchasing initiatives at each Battle Mountain location. -- Consolidation of exploration and administrative personnel worldwide.

Based in Houston, Battle Mountain Gold was formed as a spin-off of Pennzoil Company in 1985 and merged with Hemlo Gold Mines in 1996. The company had proven and probable reserves at year-end 1999 of 9.9 million ounces of gold. The company has estimated production of 760,000 ounces in 2000 rising to more than 900,000 ounces when Phoenix comes into operation in 2003. Total cash costs were $168 an ounce in the first quarter of 2000. In addition to Phoenix, the company has the Golden Giant and Holloway mines in northern Ontario; Kori Kollo in Bolivia and 50 percent of Vera/Nancy in Australia.

It also has an interest in Lihir Gold Limited in Papua New Guinea. The company employs 1,500 people. Newmont, founded in 1921, acquired Santa Fe Pacific Gold Corporation in 1997 to become North America's largest gold producer. It reported reserves of 56.6 million ounces of gold at December 31, 1999. It has estimated production for 2000 at 4.7 million ounces of gold and had cash costs of $176 an ounce in the first three months of the year. The company's core assets are in Nevada, Peru and Indonesia, with other operations in California, Mexico and Uzbekistan. The company has an employee base of 9,300. "The successful acquisition of Santa Fe and our ability to generate significant and sustained savings through the integration of adjacent assets is the model we will follow with Battle Mountain Gold," Cambre said. "While we are reviewing optimal mining rates and processing options for Phoenix, we will achieve significant savings in capital and operating costs by utilizing our existing equipment and facilities compared with Battle Mountain's stand-alone plan. As a result, Phoenix will be one of our lowest cost operations in Nevada." Upon completion of the merger, Newmont's outstanding shares will increase to approximately 192.2 million. The company expects to assume Battle Mountain Gold's 2.3 million shares of convertible preferred stock as well as $199 million in long-term debt. Net debt to total capitalization after the transaction of 40 percent will be essentially unchanged. Following the merger, Newmont will have reserves of 66.5 million ounces of gold (the third highest in the world), 232.8 million ounces of silver and 6.1 billion pounds of copper. North America will account for 56 percent of the company's gold reserves versus 52 percent today. The company will retain its position as the second largest gold producer in the world with estimated production in 2000 of 5.4 million ounces of gold at a total cash cost of under $170 an ounce. "This transaction is part of a much needed consolidation in the industry," Cambre said. "It will enable us to better rationalize our Nevada assets and determine the optimum investment and production levels to achieve the best return for our shareholders."

===Mineral Policy Center Protecting Communities and the Environment===

1612 K St., NW, Suite 808 Washington, D.C. 20006 202-887-1872 (ph)

202-887-1875 (fax) http://www.mineralpolicy.org email: mpc@mineralpolicy.org