EXHIBIT 99.7

News Release
Homestake Mining Company
650 California Street
San Francisco, CA 94108

Stephen A. Orr
Vice President Investor Relations
415-983-8169


            PRIME RESOURCES GROUP ACCEPTS HOMESTAKE MINING COMPANY'S
                  OFFER TO ACQUIRE MINORITY INVESTMENT IN PRIME


         San Francisco,  CA - DECEMBER 1, 1998 - Homestake Mining Company (NYSE:
HM) announced  today that the  shareholders  of Prime Resources Group Inc. (TSE,
VSE,  AMEX:  PRU) have  approved a  resolution  to accept  Homestake's  offer to
acquire the 49.4% of Prime it does not already own.

         Under the terms of the offer, Prime shareholders (other than Homestake)
had the  choice  of  receiving  0.74 of a  Homestake  common  share or 0.74 of a
Homestake Canada Inc. (HCI) exchangeable  share. Prime shareholders that did not
exercise the option to receive Homestake common stock by November 30, 1998, will
receive HCI Exchangable  shares. Each HCI exchangeable share may be exchanged at
any time for one  Homestake  common  share,  and will have  dividend  and voting
rights equivalent to those of one Homestake common share.

         Homestake  expects final  Canadian  regulatory  approval by December 3,
1998 at which time the  Company  will own 100% of Prime  through a wholly  owned
subsidiary,  Homestake  Canada  Inc.  Homestake  will issue  approximately  27.8
million shares valued at $300 million to complete the purchase.

         The acquisition simplifies Homestake's corporate structure, unifies the
Company's  presence in Canada and eliminates costs associated with maintaining a
separate  public  company.  In addition,  the Company  increases its interest in
low-cost  production and reserves from the Eskay Creek Mine,  clearly  enhancing
Homestake's position as one of the world's leading gold mining companies.

         Jack E. Thompson,  Chairman,  President and Chief Executive  Officer of
Homestake  commented:  "This transaction  contributes to Homestake's  continuing
strategy of growth through quality assets. It will allow Homestake  stockholders
to  benefit  fully  from Eskay  Creek's  potential  and  provides  former  Prime
shareholders  the  opportunity  to  participate  in  Homestake's  global  growth
strategy."

         To help facilitate the Prime acquisition and provide for future growth,
Homestake  shareholders  approved a Restated  Certificate of Incorporation.  The
restated  certificate  has  increased  the number of shares that the company can
issue from 250 million to 450 million. Homestake's shareholders also approved an
Outside  Directors' Stock Compensation Plan that provides for external Directors
to receive a  substantial  portion of their  compensation  in  Homestake  common
stock.




       Homestake  Mining  Company is an  international  gold mining company with
operations and exploration  activities in the United States,  Canada,  Australia
and Chile.  Homestake also has active exploration  programs in Latin America and
Eastern Europe.  Homestake began gold mining  operations over 120 years ago, and
is the  oldest  listed  company  on the New  York  Stock  exchange  still in its
original  business.  It has received numerous industry  environmental and safety
awards for its responsible environmental health and safety stewardships.