Cusac Gold Mines Ltd.

Cusac Gold Mines Ltd.

February 28, 2005 16:17 ET

Cusac Receives Positive Table Mountain Preliminary Feasibility Study


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CUSAC GOLD MINES LTD.

TSX SYMBOL: CQC
OTC Bulletin Board SYMBOL: CUSIF

FEBRUARY 28, 2005 - 16:17 ET

Cusac Receives Positive Table Mountain Preliminary
Feasibility Study

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 28, 2005) - Cusac Gold
Mines Ltd. (TSX:CQC)(OTCBB:CUSIF)

David H. Brett, President, Cusac Gold Mines Ltd. (the "Company"),
reports that the Company has received a positive Pre-Feasibility Study
relating to the economic viability of mineral reserves currently
outlined in the East Bain and Rory Veins located on the Company's 100%
owned and operated Table Mountain Gold Mine in north central British
Columbia. The Pre-Feasibility Study was prepared by Dennis Bergen,
P.Eng., an independent qualified person under National Instrument
43-101. Highlights of the Pre-Feasibility Study are as follows:

- Ore currently outlined in the East Bain and Rory Veins totals 44,000
tons of Probable Mineral Reserves grading 0.49 ounces per ton containing
21,360 ounces of gold.

- The Company would net $2.5 million in cash from the project (projected
to take 12 months) after deducting all operating costs and capital
expenditures.

- The project would result in an annualized internal rate of return of
129%.

- Total cash costs (included all direct onsite operational and overhead
costs) per ounce are estimated to be US$256 per ounce and total
production costs (includes amortization) are estimated to be US$292,
under the assumption that all capital costs of the project ($765,000)
are amortized immediately.

The Pre-Feasibility Study is based on cut grades only (meaning all drill
core assays used in reserve calculations over 2 ounces per ton were cut
back to 2 ounces), assumes a Gold price of $535 Canadian, and does not
include previously announced Rory and East Bain Inferred Mineral
Resources of 3,369 tons grading 0.96 ounces per ton (cut). $3.7 million
is required to fund capital expenditures and operating cost to bring the
project to positive cash flow.

"While this pre-feasibility study shows solid economics for current
mineral reserves over the short term, Table Mountain has excellent
potential to yield significant additional gold resources," said Cusac
CEO David Brett. "We have had good success discovering new gold
resources in the past and we plan an aggressive exploration program in
2005."

The Company also reports that it has arranged a private placement of
200,000 units at $0.16 per unit comprised of one common share and one
warrant to purchase an additional common share at $0.20 for a period of
one year, subject to regulatory approval.

This News Release has been reviewed and the technical content approved
by Dennis Bergen, P.Eng., a Qualified Person for the purposes of NI
43-101.

CUSAC GOLD MINES LTD.

David H. Brett, President & CEO

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Cusac Gold Mines Ltd.
    David H. Brett
    President & CEO
    1-800-670-6570 (Canada) or 1-800-665-5101 (USA)
    info@cusac.com
    www.cusac.com
    The TSX has not reviewed and does not accept responsibility for the
    adequacy or accuracy of this release.