EDMONTON, Alberta, Sept. 13 /PRNewswire-FirstCall/ --
Echo Bay Mines Ltd. (Toronto; Amex: ECO) today revised its accounting
treatment of the earnings per share impact of the exchange of the company's
$100 million capital securities plus accrued interest for common shares that
occurred in April 2002.  This revision affects only the earnings per share and
results in a loss per share for the three months ended June 30, 2002 of $0.27
and for the six months ended June 30, 2002 of $0.31, compared to the
previously reported $0.00 for the three and six months ended June 30, 2002.
There is no change to the operating results of $1.4 million net loss for the
three months ended June 30, 2002 and $4.0 million net earnings for the six
months ended June 30, 2002, nor are the balance sheet and cash flow statements
affected.  Reported earnings/loss as reconciled to U.S. generally accepted
accounting principles also do not change.
    The exchange of the capital securities resulted in a loss of
$137.8 million, being the difference between the market price of the common
shares and the book value of the capital securities at the time of exchange.
In accordance with Canadian generally accepted accounting principles, the loss
was split between earnings ($5.5 million) and shareholders' equity
($132.3 million) based on the classification between debt and equity.
    The company has determined that a strict interpretation of the Canadian
accounting pronouncements requires the equity portion of the loss be included
in determining earnings per common share.

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