AMERICAN NEVADA COMMENCES PAMLICO DRILLING PROGRAM

December 16, 2002 - AMERICAN NEVADA GOLD CORP. (TSX VE:AGN) is pleased to report that is has been notified by American Bonanza Gold Mining Corp. (the "Operator"), its joint venture partner, that drilling has commenced at the Pamlico Project located in the Walker Lane gold trend of Nevada. American Nevada's interest in the Pamlico Project is held pursuant to an option agreement with the Operator.

The drilling contractor, Layne Christensen Company, has mobilized both a reverse circulation drilling rig and a core drilling rig to the project site. The program will consist of about 8 drill holes to confirm and expand mineralization encountered previously in the underground workings in the Central Mine Area and at the northwest end of the Main Zone. Completion of this phase of drilling is expected in December.

As previously disclosed by the Operator, in the Central Mine area nine channel samples from the B-Zero Adit returned values averaging 20 g/t gold with four of the samples having higher results (67g/t, 34 g/t, 31.5 g/t and 22.3 g/t gold). The gold-bearing vein strikes northerly and dips moderately to the east. It averages 0.6 metres in true thickness but locally exceeds 1 metre in thickness. Two additional nearby areas returned high gold values from vein sampling. One area, 45 metres away, had gold values of 19.9 g/t and 6.2 g/t; the other, 180 metres distant, returned values of 60 g/t and 29.5 g/t gold.

In the Main Zone area, numerous adits and shafts indicate this was the primary historic mining centre, producing over 50,000 ounces of gold. In the Main Zone, previous drilling targeted known productive veins approximately 90 metres down dip from the historic workings. Eight holes were drilled along a 230 metre, roughly linear, fence. Three holes encountered narrow veins approximately 0.6 metres in true thickness, grading 42 g/t, 134 g/t and 700 g/t gold. The first intercept represents a previously unknown vein while the latter two intercepts appear to represent the down dip extension of the known productive veins that were stopped during historic mining.

Additional information about American Nevada and its properties can be obtained at www. americannevadagold.com . For further information, please contact Jeff Sundar at (604) 684-2181.


AMERICAN NEVADA GOLD CORP.

"Hari B. Varshney"

Hari B. Varshney
President

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for the adequacy or accuracy of this release.




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