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News Release
February 1, 2000

Madison arranges $5.25 million private placement

Madison Enterprises Corp. ("Madison") is pleased to report that it has, subject to regulatory approval, arranged a brokered private placement of 8,077,310 units at a price of $0.65 per unit to generate gross proceeds of $5,250,251.50. Each unit will consist of one common share of Madison and one half warrant, every full warrant entitling the purchase of an additional common share of Madison at a price of $0.70 per share during the first year and at a price of $0.90 during the second year.

Canaccord Capital Corp. has agreed to act as Madison's agent in respect of this placement and will receive a commission of 6% of the gross proceeds and a broker's warrant entitling the purchase of up to 807,731 shares of Madison at a price of $0.70 per share during the first year and at a price of $0.90 during the second year. Canaccord will have the right to arrange a further $5 million of funding before the end of May.

Carpenter Pacific Resources NL has the right to purchase 2,239,838 units pursuant to the anti-dilution right which was granted to it pursuant to the sale agreement under which Madison acquired Carpenter's interest in the Mt. Kare property in Papua New Guinea.

The proceeds of this private placement will be used to fund drill testing of Madison's six highest priority targets at Mt. Kare: the Black Zone North/Realgar Zone, Black Zone South, C-9 Deep Feeder Zone, Middle Maratani Zone and the Pinuni Creek and Orosa targets. These targets include potential significant expansions to the known deposit as well as highly prospective peripheral targets.

In connection with Canaccord's appointment as Madison's agent in respect of this placement, Madison reports that it has terminated its retainer with TD Securities to have that firm provide financial advisory services for Madison.

On behalf of the Board of Directors of
MADISON ENTERPRISES CORPORATION

Signed: "R. Davidson for Chet Idziszek"
Chet Idziszek, Chairman of the Board

NO STOCK EXCHANGE HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.

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