97/2                                                                NEWS RELEASE


                                                                    May 12, 1997
                                                            Coeur d'Alene, Idaho

                   PRIVATE PLACEMENT ANNOUNCED BY FISCHER-WATT

FISCHER-WATT GOLD COMPANY,  INC.  announced this week the recent completion of a
private placement which has raised  approximately  US$454,000.  Proceeds will be
utilized for continued exploration,  development and expansion of Fischer-Watt's
mining properties and contribute to working capital requirements.

The securities  were sold in units  consisting of two shares of Common Stock and
one  Warrant to  purchase  one share of Common  Stock  exercisable  from date of
purchase  through  February,  1999.  Purchase price per unit was US$1.06.  These
securities  were not registered  under the Securities Act of 1933 and may not be
offered  or sold in the  United  States  absent  registration  or an  applicable
exemption from registration requirements.

Fischer-Watt Gold Company, Inc. is an Idaho based mining and exploration company
with an operating  gold mine,  El Limon,  and two  additional  properties  under
development in Colombia,  South America. It also holds exploration  interests in
Mexico, is active in property research in Panama and holds key land positions in
Nevada,  one of the world's  principal gold producing  districts.  The Company's
shares trade on the NASD Bulletin Board (FWGO-OTC).

For further information, please contact:

George Beattie, Chief Executive Officer and Chairman,1-208-664-6757
or
Diane Bryan, Investor Relations, 1-702-689-7450






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