ENGLEWOOD, Colo., July 17 /PRNewswire/ -- Santa Elina Gold
Corporation and Echo Bay Mines Ltd. (AMEX and TSE: ECO) announced that
Echo Bay's acquisition of 50% of Santa Elina has now closed.
    Under the terms of the previously announced transaction, Echo Bay
has increased its ownership of Santa Elina to 50% from 7% in a share
exchange transaction with the Santa Elina shareholders.  The remaining
50% is owned by Sercor, a private holding company.  Santa Elina's assets
are located principally in Brazil.
    Santa Elina shareholders are now entitled to exchange their common
shares for Echo Bay common shares on the basis of 6.67 shares for one
Echo Bay share.  Letters of transmittal for the exchange were sent to
Santa Elina shareholders with the proxy materials.  Santa Elina's shares
will be delisted from The Toronto Stock Exchange in the near future.
    The companies also announced the appointment of Robert C. Armstrong,
52, to President and Chief Executive Officer for all Santa Elina
operations, effective immediately.  He will continue to report directly
to Richard C. Kraus, President and Chief Executive Officer of Echo Bay
Mines.
    "The placement of Bob Armstrong in this critical position
underscores how important Santa Elina is to Echo Bay's growth strategy,"
said Mr. Kraus.  "Our substantial investment in Brazil is an important
step in Echo Bay's evolution into a global mining company."
    Mr. Armstrong brings thirty-five years of mineral exploration,
engineering and operations experience to his new position.  Prior to
joining Echo Bay in 1987, Mr. Armstrong was with Cominco Ltd., where he
had responsibility at various times for exploration, evaluation,
development and operations for both open pit and underground mines.
    Mr. Armstrong joined Echo Bay in 1987 as Group Vice President,
Northern Operations.  He was named Vice President of Mining and
Technical Services in 1987 and Senior Vice President of Operations in
1991.  He has served as Executive Vice President since 1992.
    Mr. Armstrong was educated at the University of British Columbia,
where he received a bachelor of applied science degree in geological
engineering in 1966, and at Queens University, where he received a
master of science degree in geology in 1971 and a Ph.D. in geology in
1974.