$3,800,000 Financing Agreement Signed.

TORONTO, Ontario--(BUSINESS WIRE)--July 7, 1998--International Mining & Exploration Corp. (OTC\BB:IMEF) is pleased to announce that it has signed an agreement for a private placement financing of common shares of Diadem Resources Ltd. (Montreal Stock Exchange - DIR) in the amount of $3,800,000. The proceeds will be used to continue exploration and development work on Diadem's Leek Springs diamond project in California and its La Mestiza gold project in Nicaragua as well as general working capital purposes.

FINANCING DETAILS

The proposed private placement, which is subject to regulatory approval, Diadem's shareholder approval and completion of satisfactory due diligence by International Mining & Exploration Corp. (OTC\BB:IMEF), is comprised of the issue of 12,666,666 units at $0.30 per unit for proceeds of $3,800,000. Each unit is comprised of 1 common share and one common share purchase warrant. Each common share purchase warrant permits the holder thereof to purchase one additional common share at a price of $0.45. The warrants have a term of two years from the date of issue. A special meeting of Diadem will be held in early September to seek approval by its shareholders. Upon completion of the financing, International Mining & Exploration Corp. (OTC\BB:IMEF) will be the beneficial owner of 28.8% of Diadem's common shares (38.7% fully diluted).

DIADEM'S MINERAL PROPERTIES

1. LEEK SPRINGS DIAMOND PROPERTY, CALIFORNIA

The Leek Springs property, consisting of 4,300 acres, is located in the Sierra Nevada mountain range in Eldorado County, California. It is approximately 120 miles northeast of San Francisco and 22 miles southwest of Lake Tahoe. Diadem is earning a 55% interest in this property by making certain option payments and work commitments.

A surface and airborne exploration program during the 1997 exploration season included geological mapping, sampling, petrographic studies, whole rock analysis, indicator mineral analysis, land sat interpretation and airborne geophysics. An interpretation of the results of this work by Diadem's consultants has outlined twenty magnetic anomalies. Three large positive magnetic anomalies of 40-50 acres each were interpreted as diatremes. They are believed to be the major primary vents through which the volcanic breccias and flows were erupted and represent the main source/conduits of the widespread diamond and indicator mineral-bearing volcanic outcropping in the Leek Springs area. They have not been drilled.

Seventeen other smaller anomalies were interpreted as secondary volcanic vents. Seven of these anomalies were drilled by Diadem in 1995/1996 and all were diamondiferous with the recovery of 247 fragmented and broken diamond crystals ranging in size from 0.06mm to 0.68mm. The diamonds occur in an olivine lamproite volcanic breccia. This is significant since the largest diamond mine in the world, the Argyle Mine in Australia, produces from a lamproite.

Diadem is planning an exploration program for 1998-1999 of ground follow-up on 13 of the 20 anomalies, including sediment sampling for indicator minerals, prospecting, geological mapping and ground magnetic surveying. The purpose is to assess the anomalies prior to commencement of a diamond drilling, core sampling and testing program. Work is expected to commence in mid July.

Diamonds were first discovered in California during the gold rush commencing in 1848. More than 800 diamonds were recovered and documented by the gold miners. The average size was 0.86 carats with several being larger than 1.0 carat. The largest recorded diamond weight 7.25 carats. Most were understood to be of gem quality. The discovery of diamonds by Diadem on the Leek Springs property is the first time that a bedrock source of diamonds has been recorded in California. Indications are that the majority of the diamonds recovered during the gold rush had their origins in the area of the Leek Springs property.

2. LA MESTIZA GOLD PROPERTY, NICARAGUA

The La Mestiza gold property is located 60 miles north of Managua, the capital of Nicaragua. It covers an area approximately 1 half mile by 1 mile and is held under a 5 year exploration permit dated April 4, 1994. Diadem has the right to earn a 68.75% interest by making certain option payments and work commitments.

Diadem's consultants estimate that this property contains resources of 4,962,000 tons grading 0.29 ounces of gold per ton for an aggregate of 1,440,000 ounces. While additional exploration and development work is required to confirm the resources, the property has excellent potential to increase the resources and to support a 500-800 tons per day mining operation. An exploration program is being prepared for 1998-1999 to further explore the 12 vein systems on the property. It is anticipated that a 50-ton per day pilot mill will be installed on the property within the very near future as part of this program. An environmental permit has been received for the operation of the pilot mill.

INTERNATIONAL MINING & EXPLORATION CORP. PROPERTIES (OTC\BB:IMEF)

1. SUPERIOR GROUP GRAPHITE PROPERTY, BRITISH COLUMBIA

The Superior Group Graphite property is comprised of an area of approximately 20 square kilometers and contains 36 graphite bearing claims in the Slocan Mining Division of British Columbia. The property is estimated to contain as much as 80 or 100 million tons of graphite-bearing ore. International Mining & Exploration Corp. (OTC\BB:IMEF) has engaged the services of several independent engineering firms to assess the quality of the ore and final results are expected in two weeks.

Previous preliminary tests have been very encouraging. Flotation test results returned by Lakefield Research, of Lakefield Ontario indicated that of the 83.6% of the graphite recovered from the cleaner concentrate, 41% was coarse flake (+48 mesh), the most marketable form of graphite. Intermediate flake (-48+100 mesh) represented 37.3% and amorphous flake (-100 mesh) was only 21.6%. Current prices are approximately US$ 1,200/ton for coarse, $ 600/ton for intermediate and $150/ton for amorphous. There is very strong demand for graphite, and currently approximately 50% of the market is being supplied with synthetic graphite, which is considerably more expensive than the natural product. Demand has been increasing at the rate of 3% annually.

2. PALCALLACO GOLD CONCESSIONS, ECUADOR

The Palcallaco Concessions property is located in the El Oro province of Ecuador, approximately 30 miles ESE of Machala, and consists of 5 contiguous gold-bearing properties with a total area of 42,000 acres. International Mining & Exploration Corp. (OTC\BB:IMEF) has acquired a 100% interest in these properties. A series of assay tests, performed by Kilborn Inc in 1997, indicated results suggesting an average gold content of 3.68 oz/ton of ore.

3. "PANAMA" SILVER PROPERTIES, BRITISH COLUMBIA

The "Panama" group of silver properties is included in a larger block of 43 mineral claims in British Columbia, Canada, in which International Mining & Exploration Corp. holds an undivided 100% interest. The "Panama" group includes the Panama, JoJo, Miner Boy, London Hill, Silver Glance and Empress mines which have been heavy producers of silver, lead and zinc since 1893. The latest laboratory assay test of seven individual samples shows an average of 203 ounces of silver per ton of ore. There are several mills nearby which can produce in excess of 100 tons of ore each, on a daily basis.

INTERNATIONAL MINING & EXPLORATION CORP. (OTC\BB:IMEF) The NASD has neither approved or disapproved of the content of this news release

    CONTACT:  International Mining and Exploration Corp.,
               515 Madison Ave. Suite 505,
               New York, New York,
               USA 10022
               Phone: [phone]
               Fax: [phone]
               Attn: John McKee
                   or
               Toronto Office:
               International Mining and Exploration Corp.
               365 Bay Street, Suite 200,
               Toronto, Canada
               M5H 2V1
               Phone: [phone]
               Fax: [phone]
                   or
               Investor Relations:
               Cyber Financial Services Inc.
               Alan L. Taylor
               Phone: [phone]
               E-mail: [e-mail]
               More at: www.miningcorp.com
     INDUSTRY KEYWORD:  MINING/METALS