ENGLEWOOD, Colo., Oct. 30 /PRNewswire/ -- The following is being issued by
Echo Bay Mines Ltd. (Toronto; AMEX: ECO)

                                ECHO BAY MINES
              (American and Toronto stock exchanges, symbol ECO)
                               Earnings Summary

    U.S. dollars                                     1996          1995
    THREE MONTHS ENDED SEPTEMBER 30:
    Revenue                                   $94,936,000      $93,497,000
    Provision for McCoy/Cove
     pit wall stabilization                   $30,000,000               --
    Net loss:
     Before provision for McCoy/Cove
      pit wall stabilization                 $(12,416,000)     $(8,689,000)
     After provision for McCoy/Cove
      pit wall stabilization                 $(42,416,000)     $(8,689,000)
    Loss per common share:
     Before provision for McCoy/Cove
      pit wall stabilization                       $(0.09)          $(0.08)
     After provision for McCoy/Cove
      pit wall stabilization                       $(0.31)          $(0.08)
    Weighted average common
     shares outstanding                       137,600,000      113,900,000

    NINE MONTHS ENDED SEPTEMBER 30:
    Revenue                                  $257,772,000     $268,300,000
    Provision for McCoy/Cove
      pit wall stabilization                  $30,000,000               --
    Net loss:
     Before provision for McCoy/Cove
      pit wall stabilization                 $(43,175,000)    $(33,325,000)
     After provision for McCoy/Cove
      pit wall stabilization                 $(73,175,000)    $(33,325,000)
    Loss per common share:
     Before provision for McCoy/Cove
      pit wall stabilization                       $(0.33)          $(0.29)
     After provision for McCoy/Cove
      pit wall stabilization                       $(0.55)          $(0.29)
    Weighted average common
     shares outstanding                       132,800,000      113,100,000

    Echo Bay Mines Ltd. (AMEX and TSE: ECO) today reported a net loss of $12.4
million ($0.09 per share) in the third quarter of 1996 before a previously
announced special provision of $30.0 million ($0.22 per share) for waste rock
stabilization at the McCoy/Cove mine, which brought the total quarterly loss
to $42.4 million ($0.31 per share).  A year ago, Echo Bay had a third quarter
net loss of $8.7 million ($0.08 per share).
    The average number of common shares outstanding during the quarter rose to
137.6 million from 113.9 million a year ago.
    The losses in both quarters reflect the continuing high level of
exploration and development activity in the company's international search for
new gold reserves and production.  Echo Bay expensed $17.1 million in the
third quarter of this year and $18.8 million a year ago to advance a number of
exploration and development projects.
    Gold production rose 6% to 218,043 ounces from the same quarter last year,
reflecting increased tonnage of ore processed at both McCoy/Cove and Round
Mountain, partly offsetting lower ore grades processed.  Cash operating costs
increased to $243 per ounce of gold produced from $215 in the previous year,
reflecting the lower grades.  Silver production was 2.1 million ounces, down
from the previous year of 3.4 million, but up from the second quarter. Silver
grades during the period were 45% lower than the same period the previous
year.
    The full-year gold production target remains unchanged and is anticipated
to be 725,000 - 750,000 ounces at a cash operating cost of $245 - 255 per
ounce.  Full-year silver production is now anticipated to be approximately
seven million ounces.
    Third quarter revenues were $94.9 million this year, compared with
$93.5 million a year ago.  The average price received per ounce of gold sold
during the quarter by Echo Bay was $390, compared with $387 in 1995.
    The increase in the number of shares outstanding to 139.4 million at
quarter's end reflects the July issuance of 8.8 million shares to increase
Echo Bay's interest in Santa Elina Gold Corporation to 50% from 7%.  The
increase over the third quarter of 1995 also includes 16.9 million shares
issued in late 1995 in connection with the conversion of convertible preferred
stock.
    In August, Echo Bay announced that it would establish a one-time
$30.0 million provision for the estimated costs of removing up to 30 million
tons of waste rock from an unstable portion of the Cove pit wall at the
McCoy/Cove mine in Nevada.  The unstable pit wall has had no effect on
production or reserves, and no future impact is anticipated.  Existing ore
stockpiles of 4.5 million tons, together with ore to be mined from other areas
of the pit, will provide production sources until the stabilization of the pit
wall is complete.  The majority of the work is expected to be undertaken in
1997 and 1998 following completion of a detailed stabilization plan,
anticipated in early 1997.
    Echo Bay is a major gold producer with mines in Canada and the United
States.  The company has expanded its search for new gold reserves and
production worldwide.  The company's long-term goal is to double annual gold
production to 1.5 million ounces of gold at a cash production cost well below
current levels, and to increase gold reserves to more than 20 million ounces.
    Additional information is available by fax on request.  Please call Janine
Townsend at 303-714-8811.
    "Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: The statements herein that are not historical facts are forward-
looking statements involving risks and uncertainties that could cause actual
results to vary materially from targeted results.  These include but are not
limited to differences in ore grades and tons mined from those expected,
changes in project parameters as plans continue to be refined, changes in
mining and milling rates from currently planned rates, the results of current
exploration activities and new exploration opportunities, and the conclusions
of feasibility studies currently under way.  Please refer to a discussion of
these and other factors in the company's 10-K, 10-Q and other Securities and
Exchange Commission filings.

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