ERITREA orders 3 Canadian mining firms to quit work

September 4, 2004

VANCOUVER (Dow Jones)--Nevsun Resources Ltd. (NSU.T), Sanu Resources Ltd. ( SNU.V) and Sunridge Gold Corp. (SGC.V) have each received a letter dated Sept. 2 from the Minister of Energy and Mines of Eritrea instructing the companies to halt all mineral prospecting and exploration work and related activities in Eritrea until further notice.

In a news release, the affected companies said no reason was given for the order.

They said they have sought further clarification and will provide information as it becomes available.

Company Web Site: http://www.nevsun.com

-Wendy Tsau, Dow Jones Newswires; 416-306-2100

Michael Hopley, president and chief executive of Sunridge Gold Corp. (SGC.V), said he hopes to obtain more information before markets open on Tuesday, after the Labor Day holiday Monday.

"We've been blindsided," Hopley said of the brief letter received in the capital city of Asmara from the Eritrean Minister of Energy and Mines. Hopley said the letter "gives no hint as to the reason" for requesting a halt in all mineral exploration and related work being done in the African country.

Hopley said he didn't want to speculate on possible reasons for the letter. " Everything seemed to be going along well, and still seems to be going along well," he said. "There was nothing that I know of, and more importantly nothing that our in-country managers are aware of, that would create something like this," he said.

Sunridge has an option to earn up to a 90% joint venture interest in the Asmara gold and copper project, operated by Australia's Sub-Sahara Resources N.L. (SBS.AU).

Nevsun Resources Ltd. (NSU.T) owns 90% of the Bisha high-grade gold and copper project in west-central Eritrea. Nevsun president and chief executive John Clarke couldn't immediately be reached for comment.

Sanu Resources Ltd.'s (SNU.V) Web site says the exploration company is focused on one project in Eritrea and another in Mali.

Company Web Sites: http://www.nevsun.com, http://www.sunridgegold.com and http://www.sanuresources.com

-Lynne Olver, Dow Jones Newswires; 604-669-1595

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