Cusac Gold Mines Ltd.
TSX : CQC
OTC Bulletin Board : CUSIF

Cusac Gold Mines Ltd.

August 21, 2006 09:01 ET

Cusac Gold Mines Ltd.: Table Mountain High-Grade Underground Gold Mining Begins, Taurus II Exploration Continues

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 21, 2006) - David H. Brett, President, Cusac Gold Mines Ltd. (TSX:CQC)(OTCBB:CUSIF) (the "Company"), reports that surface preparations are complete and underground operations have begun at the Company's 100% owned Table Mountain Gold Mine in northern British Columbia, and that trenching has begun in advance of drilling at the nearby Taurus II disseminated gold target. All required underground mining personnel, equipment, and supplies are on site, and refurbishment of the mill, assay lab and other facilities are progressing, keeping the Company on-track for commencement of cash flow from gold production in the 4th quarter of 2006.

Exploration crews have completed an extensive (2,700 sample) soil geochemical survey over the Taurus II bulk tonnage target and results have defined numerous gold anomalies that are currently being investigated by trenching. Trench results to date have defined a number of alteration zones and quartz vein structures that warrant follow up diamond drilling. Diamond drilling is scheduled to commence during the first week of September 2006. Ongoing data compilation and geological modeling at Taurus II and the rest of the Table Mountain property is being enhanced by a high-resolution "bare-earth" topographic model generated by a helicopter-borne LIDAR (Laser Imaging, Detection and Ranging) survey over the 10 Km long Erickson Creek Fault Zone which hosts the bulk of the gold occurrences on Cusac's extensive land package. George Sanders, M.Sc, P.Geo is a Cusac Director and Qualified Person for the technical portion of this News Release under National Instrument 43-101.

To assist the Company in its exploration strategy, the Company retained Senior Consulting Geologist Mathew C.N. Ball, Ph.D., who recently completed a two-week visit to the Property. Dr. Ball worked for both Cusac and Erickson Gold up to 1994, and completed his doctoral thesis on the subject of the origin of gold mineralization at Table Mountain, and was a runner-up winner of the ground-breaking "Goldcorp Challenge" and subsequently worked with the winning team. Dr. Ball has now identified over 70 priority-ranked exploration targets on the property, and the Taurus II area stands out on his data set as the highest priority. Dr. Ball also has recommended new down-dip drilling to test possible gold bearing extensions of the major veins on Table Mountain.

"We are very excited about the evolving exploration targets at Taurus II and potential for positive results in the upcoming diamond drilling program," said VP of Exploration, Lesley Hunt.

"It's been a very busy summer for the Cusac team at Table Mountain, and I am pleased that we are making such great strides on the mining and exploration fronts," said Cusac CEO, David Brett. "We are looking at an even busier fall as we ramp up our drill program at Taurus II and start to hit ore on the Rory Vein."

Cusac Gold Mines Ltd. is a gold mining company in existence since 1966. Cusac has a dominant land position in the Cassiar Gold Camp of northern BC, and is re-starting gold production from high-grade quartz veins on Table Mountain. Cusac also owns over 30% of the low-grade, bulk tonnage, million-ounce resource at the Taurus deposit, and is exploring for more bulk-tonnage, disseminated gold mineralization nearby at its 100% owned Taurus II project. Please visit our website www.cusac.com for more details.

CUSAC GOLD MINES LTD.

David H. Brett, President & CEO

Forward-Looking Statements

There are forward-looking statements contained herein that are not based on historical fact, including without limitation statements containing the words "believes", "may", "plans", will", "estimate", "continue", "anticipates", "intends", "expects" and similar uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, among others, Cusac's exploration results, lack of revenues, additional capital requirements, risks associated with the exploration activity. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future results, events or developments.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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