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Company Press Release

MK Gold Company Announces Joint Venture Agreement

SALT LAKE CITY--(BUSINESS WIRE)--Dec. 23, 1998--MK Gold Company (NASDAQ:MKAU - news) today announced the finalization of a Joint Venture agreement with Phelps Dodge Exploration Company to explore, develop and produce precious and other metals from the Diamond Valley property in Elko County, Nevada.

The property contains ``Carlin-type'' sediment-hosted gold deposit targets in paleozoic limestones and marine black shales. Preliminary geologic mapping and sampling suggests a number of potentially viable drill targets. Gold assays up to .064 oz/t have been obtained from jasperoid outcrops along a major north-south fault zone on the property. During 1999, the Company will commence an exploration program on the property consisting of rock chip and soil sampling, geophysics and drilling to determine whether production is feasible.

MK Gold can earn up to an 80% interest in the Venture by making certain payments to Phelps Dodge and completing a work program. MK Gold will also direct the exploration program and be the operator upon production. Phelps Dodge is one of the Nations largest mining companies with offices in Phoenix, Arizona.

MK Gold Company is engaged in the business of mining gold, contract mining, and exploring for and acquiring gold and other mineral properties. The Company is incorporated in Delaware and its executive offices are located at 60 East South Temple, Suite 2100, Salt Lake City, Utah 84111.

Certain information set forth in this press release contains ``forward-looking statements'' within the meaning of federal securities laws. There are a number of risks and uncertainties that could cause actual results to differ materially from those set forth in this press release. These risks include, but are not limited to, economic recessions, fluctuations in gold prices, risks associated with closure and reclamation of mines and risks associated with exploration activities. Future events and actual results could differ materially from those contemplated by the forward looking statements.

For further information contact John Farmer at 801-297-6900 or visit MK Gold Company's web site at www.mkgold.com.

     MK Gold Company, Salt Lake City
     John Farmer, 801/297-6900