Red Lake Properties to be Explored by Placer Dome

[Franko10 ™]

Claude's Red Lake Properties to be Explored by Placer Dome
Claude Resources Inc. (Claude) and Placer Dome (CLA) Limited (Placer) have entered into an option/joint venture agreement in respect of Claude's Madsen gold exploration property near Red Lake, Ontario. The agreement is subject to Placer conducting due diligence and electing to proceed with the option phase by December 15, 2000.

The option phase will entitle Placer to earn a 55% working interest in the Madsen property by expending $8.2 million over three years and delivering to Claude a bankable feasibility study by the end of the fifth year. Placer may abandon the option at any time after spending $1.2 million.

Concurrent with electing to proceed with the option phase and subject to regulatory approval, Placer will subscribe for 1,000,000 common shares of Claude for $750,000. As well, Placer and Claude will work towards a "preferred relationship" agreement whereby the parties intend to pursue mutually beneficial opportunities.

Upon Placer fulfilling its obligations in respect of the option phase, Placer and Claude will be deemed to have formed a joint venture with respective interests of 55% and 45%. At Claude's election, Placer may earn an additional 5% of the project by funding Claude's share of infrastructure costs associated with any mine development on the property. Under the agreement Claude's interests can not be reduced below 40%.

The Red Lake mining camp is one of the most prolific gold producing areas in Canada.

For further information please contact:
Neil McMillan, President
Phone: [phone]