August 18, 2003
Montana Resources to Recommence Mining Operations in Butte

The Management Committee of Montana Resources (“MR”) announced today their decision to commence mine operations in Butte. The Management Committee also announced the appointment of Frank Gardner as President of MR to oversee startup activities and MR’s operations.

Larry Simkins, Chairman of the MR Management Committee, said: “We are extremely fortunate to be in a position to make this decision. Frank and his team prepared a very thorough analysis and presented a compelling case for a new beginning for mining in Butte”.

The Management Committee also cited the strong show of support given by MR’s former key employees as a positive factor in their decision-making. MR’s employees have been and will be vital to the mine’s success.

MR will immediately begin hiring the employees needed to complete startup activities and work toward full production. MR intends to have a full complement of approximately 350 employees on board by mid-October.

Mr. Gardner’s appointment as President is effective today. Mr. Gardner was President of the mine from 1986 through 1997, and will oversee all aspects of MR’s operations. Mr. Simkins stated: “We are thrilled that Frank is returning to Butte to take charge of this new mining effort. There is no person better qualified to build and run the Butte mine. We are excited that Frank is willing to dedicate his time and efforts to make MR successful.”

With Mr. Gardner’s appointment as President, Steve Walsh becomes the Vice President – Human Resources of MR and will be responsible for several critical aspects of MR’s business, including personnel, electricity supply, environmental obligations and safety. The Management Committee complimented Mr. Walsh on his excellent work. Mr. Gardner said: “Steve has done a fantastic job and is an extremely valuable resource for MR. His skill, ability, knowledge, commitment and dedication will be indispensable.”

One of Mr. Gardner’s initial priorities will be to negotiate and finalize the significant contractual arrangements needed for mine operations. These include contracts for the sale of copper and molybdenum concentrates, and for power supply. Regarding electricity needs, Mr. Gardner said: “Current indications for power costs are much better than what we found when operations were suspended in 2000. Quickly obtaining a stable and secure electricity supply for the mine will be of utmost importance.”

MR is a general partnership with the majority of its ownership interest held by Montana Resource, Inc., a corporation wholly owned by Mr. Dennis Washington. When informed by MR’s Management Committee of its decision to commence mine operations, Mr. Washington stated: “I am impressed with the support provided by the City of Butte, Silver Bow County and the State of Montana. MR is counting on their continued support. I recognize that significant challenges lie ahead, and it will take a supreme effort of all involved to make this operation successful.”

Prior to the suspension of mining in July 2000, the mine operated without a significant interruption for nearly 14 years, the longest period of continuous mining activity in Butte. During that period, an average of approximately 330 people were employed and the company paid over $180 million in wages and profitsharing. The operation also paid over $100 million to the State of Montana, Silver Bow County and the City of Butte for state and local taxes. It is anticipated that approximately 350 mining jobs will be created in Butte, Montana.