Echo Bay Announces Receipt of Toronto Stock Exchange Conditional Approval; Deferral of Capital Security Interest Payments

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Echo Bay Announces Receipt of Toronto Stock Exchange Conditional Approval; Deferral of Capital Security Interest Payments

    EDMONTON, Alberta, March 14 /PRNewswire-FirstCall/ -- Echo Bay Mines Ltd.
(Toronto; Amex: ECO) announced today that The Toronto Stock Exchange ("TSE")
has granted approval for the listing of up 361,561,230 common shares of Echo
Bay, conditional upon holders of common shares approving the issuance of these
shares at a meeting called for March 25, 2002, and Echo Bay issuing this news
release and filing all necessary documents with the TSE by April 15, 2002.
    These shares are to be issued to retire a capital securities debt
obligation of US $100 million in principal amount plus accrued and unpaid
interest, assuming the holders of all of the capital securities agree to
exchange their securities for common shares.  To date, holders of 98 percent
of the capital securities have agreed to participate, subject to satisfaction
of certain conditions including receipt of TSE listing approval.  Expressed in
per share terms, each common share issued will retire U.S. $0.45 of principal
and interest calculated to December 31, 2001.  The transaction contemplates
retirement of the entire principal and interest obligation, including interest
accrued to, or to accrue after, December 31, 2001.
    The Company also announced that it has elected to defer the interest
payment due on April 1, 2002 to holders of its capital securities.  Under the
terms of the capital securities, issued in March 1997, the company has the
right to defer interest payments for up to 10 consecutive semi-annual periods.
The current deferral represents the ninth consecutive deferral of semi-annual
interest payments.  Interest accrues during the deferral period at the rate of
12 percent per annum, compounded semi-annually, compared with the 11 percent
face amount payable on the capital securities.
    Echo Bay mines gold and silver in North America.  The primary markets for
its common shares are the American and Toronto stock exchanges.
    For further information contact:  Lois-Ann L. Brodrick, Vice President and
Secretary, telephone 780-496-9704.

SOURCE Echo Bay Mines Ltd.

http://www.echobay.com
CONTACT:
Lois-Ann L. Brodrick, Vice President and
Secretary of Echo Bay Mines Ltd., +1-780-496-9704