FISCHER-WATT COLD GOMPANY INC.
                  1410 Cherrywood Dr., Coeur d'Alene, ID 83814
                    Telephone 208-664-6757 Fax 208-667-6516



News Release # 01/2005                                             June 1, 2005


                FISCHER-WATT SECURES THE DEVELOPMENT OF LA BALSA
                 Arranges funding for Latin American Exploration


Fischer-Watt  Gold  Company,  Inc.  (OTC BB:  FWGO) has entered into a Letter of
Intent with Nexvu Capital Corp. of Vancouver, B.C. for the development of the La
Balsa copper  property in Michoacan,  Mexico.  Additionally,  Nexvu will provide
FWGO with up to $2 million by way of  Convertible  Debentures  to enable FWGO to
carry out mineral exploration programs in Latin America.

La Balsa Project

The La Balsa property is 100% owned by FWGO's 65% controlled Mexican subsidiary,
Minera Montoro. Nexvu will have the right to earn a 67.5% Joint Venture interest
in the  near-surface  oxide portion of the La Balsa copper deposit by placing La
Balsa into production  within 27 months and by having spent at least $10 million
on the project.  However,  total costs to complete the project to production are
expected to be more than this amount, with Nexvu's current preliminary  estimate
for an open-pit mine, leach facility and an SX-EW copper recovery plant being in
the range of up to $18  million.  Nexvu  will  provide  all  these  funds and is
entitled to recoup the  pre-production  capital  costs that are over and above a
non-recoupable  amount of $10 million. They will be entitled to receive 82.5% of
free cash flow from the  operations  during the  period of  capital  recoupment.
Thereafter,  free cash flow will be split in the Joint Venture  amounts of 67.5%
to Nexvu and 32.5% to Minera Montoro.

After  earning its interest in the oxide  portion of the deposit Nexvu will also
be entitled to earn a 100%  interest  in the deeper  sulphide  portion of the La
Balsa copper porphyry system. The earn-in on this portion of the deposit will be
satisfied by the expenditure of $3 million on development of the sulphide system
within 3 years after Nexvu having  exercised its option over the oxide  deposit.
Minera  Montoro will retain a Net Smelter  Return  royalty on  production  after
capital recoupment from the sulphide deposit. This royalty will be calculated on
a sliding  scale  determined  by the price of copper.  The scale  ranges  from a
minimum  royalty of 1% when copper is below US$0.80 per pound to a maximum of 4%
when copper is above US$1.60 per pound.  Nexvu has the option to purchase a 1.5%
royalty from Minera Montoro for $3 million  within one year after  completion of
the final bankable  feasibility study of the sulphide deposit at which point the
sliding scale royalty  payable will be modified to 0.5% when the price of copper
is below  US$1.00  per pound and  ranging to a maximum of 2.5% when the price of
copper is above US$1.60 per pound.

Mr.  George  Beattie,  President of FWGO,  on  welcoming  Nexvu,  said;  "We are
extremely  happy  that  Nexvu  recognised  the large  potential  of La Balsa and
proposed to construct a fully integrated mine and SX-EW plant to produce refined
copper metal."

Latin American Exploration

FWGO will form a strategic  alliance with Nexvu for the purpose of exploring for
mineral deposits in Latin America through FWGO's 65% subsidiary, Minera Montoro.



In order to fund this exploration  Nexvu will provide FWGO with up to $2 million
over 3 years by way of a series of Convertible Debentures. The first tranche, in
the amount of  $650,000  will take place  shortly  after  completion  of Nexvu's
Initial Public Offering. Second and third tranches of $650,000 and $700,000 will
follow one year and two years later, respectively. These debentures will carry a
commercial  interest  rate of prime plus 3% and will be  repayable  a year after
funds have started to be distributed to the Joint Venture on production from the
oxide  deposit  at La Balsa.  Repayment  may be in the form of cash or shares of
FWGO at the then market price of FWGO shares.  FWGO,  at the time of  repayment,
may determine in what form it will repay 50% of the total repayable amount, i.e.
either in cash or shares. Nexvu,  likewise,  may determine in what form it would
like to receive repayment of the remaining 50% of the total repayable amount.

Nexvu has been granted  "back-in"  rights to 51% of a project once over $400,000
has been spent on that  project.  To exercise this right Nexvu has to contribute
200% of the amount spent on the project by Minera Montoro.

Commenting  on this part of the  agreement,  George  Beattie  noted that;  "This
staged  infusion  of money into the Company  will  enable FWGO to continue  with
exploration  projects  even  as La  Balsa  is  being  prepared  for  production.
Additionally,  repayment  is planned to take place a year after FWGO has started
to receive cash distributions from La Balsa."


A  definitive  agreement  is now being  drawn up and may be  subject  to certain
regulatory and shareholder approvals.

For further information please contact:
Mr. George Beattie,  President and Chief Executive officer.
Fischer-Watt Gold Company, Inc
208-664-6757
Email address: gjbeattie@yahoo.com



Statements in this release that are not  historical  facts are  "forward-looking
statements" within the meaning of the Private  Securities  Litigation Reform Act
of 1995.  Readers are cautioned  that any such  statements are not guarantees of
future  performance and that actual  developments or results may vary materially
from those projected in the forward-looking statements.

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