Exercise of options

Brancote Holdings PLC
10 June 2002


                              BRANCOTE HOLDINGS PLC

                              EXERCISE OF OPTIONS

Richard Prickett, Bill Humphries and David Dare, directors of Brancote, intend
to exercise options in respect of an aggregate number of 1,828,556 Brancote
ordinary shares. In accordance with undertakings given to Meridian Gold Inc. ('
Meridian') they intend to accept its Offer in respect of these shares, however
they reserve the right subsequently to sell them in assented form in the market.

As set out in the offer document the Directors also undertook to accept the
Offer in respect of the balance of their holdings amounting to 1,379,080
ordinary shares prior to the first closing date of the Offer, 26 June 2002.

The purpose of reserving the right to sell, in assented form, the shares
resulting from the exercise of options is to enable the Directors, having
accepted the Offer, to realise value from their investments should they so wish.
In compliance with Note 5 to Rule 4 of the Takeover Code none of the shares will
be sold for at least 24 hours following the time of this announcement.

Meridian has filed a registration statement on Form F-4 with the SEC that
includes the offer document/prospectus relating to the Offer.  Brancote
shareholders are urged to read the offer document/prospectus before they make
any decision with respect to the Offer because it contains important
information. Brancote shareholders and Meridian shareholders may obtain a free
copy of the offer document/prospectus and other documents filed by Meridian with
the SEC at the SEC's website at www.sec.gov.  The offer document/prospectus and
other documents may also be obtained for free upon written or oral request from
Meridian, 9670 Gateway Drive, Suite 200, Reno, Nevada 89511-8953 USA, attention
Heather Fatzer, telephone [phone].


Enquiries:

Brancote                                Tel: [phone]

Richard Prickett

Bill Humphries

Brown, Shipley & Co. Limited            Tel: [phone]

William Staple





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