Homestake Statement On Hostile Newmont Offer For SantaFe Pacific Gold.

SAN FRANCISCO--(BUSINESS WIRE)--Jan. 7, 1997--Homestake Mining Company (NYSE:HM) today issued the following statement in response to Newmont Mining's hostile offer for Santa Fe Pacific Gold Corporation (NYSE:GLD):

"As previously announced, we have a definitive agreement, approved by

Santa Fe's Board of Directors, to merge with Santa Fe Pacific gold to create a new leading international gold company." said Jack E. Thompson, President and Chief Executive Officer of Homestake. "Our planned merger with Santa Fe will create a new top-tier gold producer with the asset base, portfolio of growth opportunities, financial strength including a strong balance sheet and operating skills to pursue an aggressive strategy that should enable the new Homestake to earn a market valuation reflecting its improved fundamentals."

He added: "We fully intend to complete our planned transaction which effectively gives Santa Fe's shareholders about 50 percent of the combined company and which we believe offers much greater upside potential than Newmont's offer."

Homestake Mining Company is an international gold mining company with substantial operations in the U.S., Canada and Australia. Homestake also has active exploration programs in the Andes, Venezuela, French Guiana, Brazil and elsewhere in Latin America, and development and/or evaluation projects in Chile, Russia and Bulgaria.

Statements contained in this press release which are not historical facts are forward-looking statements as that item is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimated results. Such risks and uncertainties are detailed in the companies' filings with the Securities and Exchange Commission.

CONTACT: Homestake Mining Company

Gene G. Elam, 415-983-8106

Vice President, Finance and Chief Financial Officer

or

Michael A. Steeves, 415-983-8169

Director, Investor Relations