October 22, 2002

News Release: Placer Dome now owns 56% of AurionGold

Placer Dome Inc. (PDG TSX) is pleased to announce that its wholly owned subsidiary, Placer Dome Asia Pacific Limited (PDAP), has gained a controlling interest of 55.85% of AurionGold Limited.

On May 26, 2002, PDAP launched a bid to acquire all of the shares of AurionGold, an Australian gold producer. On October 14, 2002, AurionGold's Board of Directors advised AurionGold shareholders to accept the offer or sell their shares on market while the offer remains open. Placer Dome President and CEO Jay Taylor expressed his enthusiasm on reaching and exceeding the 50% mark. "This is an exciting time for us as it signals an important milestone in completing the acquisition," he said. "Last week we secured Board representation. Our transition team is on the ground and we are reviewing the opportunities we see for AurionGold's assets. This review will allow us to implement strategies aimed at achieving the $25 million per year in operating synergies we expect to realize once we acquire 100% of AurionGold's shares."

The Offer

PDAP is offering AurionGold a combination of shares and cash. The share component of the offer consists of 17.5 Placer Dome shares for every 100 AurionGold shares. AurionGold shareholders whose acceptances are received on or after October 23, 2002 will receive a cash payment of A$0.18 per AurionGold share. AurionGold shareholders, other than those who purchased their shares on an ex-dividend basis, will be entitled to receive the AurionGold fully franked A$0.10 per share special dividend in respect of those shares if they are AurionGold shareholders on October 24, 2002.

The offer is scheduled to close at 6:00pm (AEST) on Friday, 1 November 2002. Acceptance procedures are outlined in the Placer Dome Bidder's Statement dispatched to AurionGold shareholders on June 11, 2002.

Broker Handling Fees

The revised broker handling fees (as outlined in previous announcements, including Placer Dome's 25th supplementary bidder's statement on September 10, 2002) will be available until the scheduled close of the offer. Placer Dome has not yet made a decision about whether it will extend the offer, or if it extends the offer whether any further broker handling fees will be payable.

CAUTIONARY NOTE

Some of the statements contained in this news release are forward-looking statements, such as estimates and statements that describe Placer Dome's future plans, objectives or goals, including words to the effect that Placer Dome or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to among other things, reserves, resources, results of exploration, capital costs and mine production costs could differ materially from those currently anticipated in such statements by reason of factors such as the productivity of Placer Dome's mining properties, changes in general economic conditions and conditions in the financial markets, changes in demand and prices for the minerals Placer Dome produces, litigation, legislative, environmental and other judicial, regulatory, political and competitive developments in domestic and foreign areas in which Placer Dome operates, technological and operational difficulties encountered in connection with Placer Dome's mining activities, and labour relations matters and costs. "Placer Dome" is used in this news release to collectively mean Placer Dome Inc., its subsidiary companies and its proportionate share of joint ventures. "Placer Dome Group" or "Group" means collectively Placer Dome Inc., its subsidiary companies, its proportionate share of joint ventures and also companies for which it equity accounts. "Placer Dome Group's share" or the "Group's share" is defined to exclude minority shareholders' interest. The "Corporation" refers to Placer Dome Inc.

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For further information: Brenda Radies, (604) 661-1911; On the Internet:
www.placerdome.com

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