Offer Update

Brancote Holdings PLC
02 August 2002


2 August 2002



   Not for release, publication or distribution in or into Australia or Japan

RECOMMENDED SHARE EXCHANGE OFFER BY MERIDIAN GOLD INC. FOR BRANCOTE HOLDINGS PLC
(the 'OFFER')

                              Closing of the Offer

Meridian Gold Inc. ('Meridian') announces that its Offer for Brancote Holdings
Plc ('Brancote') will close at 3.00 p.m. (London Time) on 19 August 2002.

By 3.00 p.m. (London Time) on 1 August 2002, valid acceptances of the Offer had
been received in respect of 108,330,999 Brancote shares, representing
approximately 92.68 per cent of Brancote's issued share capital.

On 3 July 2002 Meridian announced that it had received valid acceptances of the
Offer in respect of approximately 90.34 per cent of Brancote's issued share
capital and that, accordingly, all the conditions relating to the Offer had been
satisfied or waived. Meridian, therefore, declared the Offer unconditional in
all respects.

On 12 July 2002 Brancote gave notice of its intention to de-list the Brancote
shares from the Alternative Investment Market of the London Stock Exchange
('AIM'). The last dealing date will be 9 August 2002 and the cancellation of the
listing and the trading of the Brancote shares on AIM will take effect on 12
August 2002.

On 8 July 2002 Meridian implemented the procedure under Part XIIIA (section 429)
of the Companies Act 1985 to acquire compulsorily all of the outstanding
Brancote shares. A letter, together with a statutory notice pursuant to section
429, was posted to the Brancote shareholders who had not yet accepted the Offer.
This procedure will conclude on 19 August 2002. The Offer will close shortly
prior to the compulsory purchase of shares pursuant to this procedure.

Of acceptances received, 18,255,564 Brancote shares or approximately 17 per cent
of the acceptances have been received from the directors of Brancote and
Consolidated Press International Limited, Brancote's largest shareholder, who
each gave irrevocable undertakings to Meridian to accept the Offer.

Jones Heward Investment Counsel, as discretionary fund manager of the BMO
Precious Metal Fund, being a person deemed acting in concert with Meridian for
the purposes of the Offer, held 400,000 Brancote shares prior to the offer
period, representing 0.0034 per cent of Brancote's issued share capital. These
shares are included in the level of acceptances stated above.

Save as set out above, neither Meridian nor any person acting in concert with
Meridian held any Brancote shares (or rights over such shares) on 7 March 2002,
the last dealing day prior to the commencement of the offer period, nor has any
such person acquired or agreed to acquire any such shares (or rights over such
shares) during the offer period which commenced on 8 March 2002.

Meridian has filed a registration statement on Form F-4 with the SEC that
includes the offer document/prospectus relating to the exchange offer.  Brancote
shareholders are urged to read the offer document/prospectus before they make
any decision with respect to the exchange offer. 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].

PRESS ENQUIRIES

Meridian                           Tel: [phone]
Wayne Hubert

Standard Bank London Limited       Tel: [phone]
Andrew King

BMO Nesbitt Burns Inc.             Tel: [phone]
Egizio Bianchini

The Offer is not being made, directly or indirectly, in or into Australia or
Japan, or by the use of, the mails of or by any means or instrumentality
(including, without limitation, telephonically or electronically) of interstate
or foreign commerce of, or of any facility of a national securities exchange of,
Australia or Japan. Accordingly, copies of this announcement are not being, and
must not be, mailed or otherwise distributed or sent in or into Australia or
Japan.

Standard Bank, which is regulated in the UK by the Financial Services Authority,
is acting for Meridian and no one else in connection with the Offer and will not
be responsible to anyone other than Meridian for providing the protections
afforded to clients of Standard Bank nor for providing advice in relation to the
Offer.

END.

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