Placer Dome, after due diligence, has elected to proceed with the option agreement with Claude Resources on Claude's 10,000 acre, 100% owned Madsen Red Lake and adjoining exploration property.

Placer Dome can earn a 55% interest in the property by spending CDN $8.2 million in the first three years and delivering a positive bankable feasibility study over the following 2 years.

Placer Dome is planning an aggressive program of surface drilling in two phases to evaluate the #8 zone both along strike and at depth. A total of 36,000 feet of drilling is envisaged in 2001. The initial phase of drilling, comprising approximately 15,000 feet, is planned to begin in early January, 2001.

As a result of electing to participate, Placer Dome has subscribed for 1,000,000 treasury shares of Claude at CDN $0.75 per share.

For further information please contact:
Neil McMillan, President
Phone: (306) 668-7505