Adamas -- Option to Earn 70 Percent Interest in 34,000 Acre Gold Exploration Concession in Mozambique.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Dec. 11, 1996-- Adamas Resources Corp. (VSE:AMS) is pleased to announce that it has signed a Memorandum of Understanding (the "Agreement") with Mincor Resources Inc. ("Mincor") to earn a 70 percent interest in the Niassa Exploration Concession (the "Property") in northern Mozambique.

The Agreement is subject to regulatory and board approvals.

Encompassing 34,000 acres (13,760 hectares) in the province of Niassa (which borders the countries of Tanzania and Malawi), the Property was previously acquired from the Mozambique Government by Mincor for US$350,000. Adamas Resources has also negotiated a first right of refusal for Mincor's remaining 30 percent interest in the Property.

The Mozambique Government reports that during 1994, over 240,000 ounces of gold were recovered by local miners working alluvial, eluvial and colluvial deposits plus surface-exposed gold-bearing reefs located on the Property.

Only limited exploration work has been performed to date on the Property. It is believed that the gold deposits are likely to be similar to those hosted in the Archean Greenstone belts of Tanzania. Adamas Resources believes that the Property holds significant potential to host a world-class gold deposit based on the productive surface yields.

Within the Niassa District, Anglo American, Gencor, Ashanti / Lonhro and BHP have recently acquired or are reported to be currently staking major land positions. Kennmare Mining plc, which is exploring on ground adjoining the Property, recently announced a near-surface gold discovery containing approximately 200,000 ounces. To earn its 70 percent interest, Adamas Resources must spend $1.5 million on exploration and development over the next three years.

Adamas Resources expends to spend a minimum of $500,000 during its Phase I work program, which will be conducted over the next 12 to 24 months. The initial program will include, but not be limited to, regional and local geological mapping, rock chip and geochemical sampling, stream sediment sampling, data compilation and interpretation, with an objective defining preliminary targets for future trenching and drilling.

Subsequent Phase I work will include a continuation of the regional reconnaissance / assessment work program, as well as trenching and RVC (or core) drilling of major gold anomalies / targets identified on the Property.

Adamas Resources anticipates spending a minimum of $1 million during its Phase II exploration and development work program on the Property, continuing its regional evaluation work, with emphasis on identifying, trenching and drill-testing specific areas of the Property that are both economically viable and worthy of subsequent feasibility work.

In addition to the proposed work program outlined above, Adamas Resources will issue Mincor a total of 150,000 of its common shares in four stages.

Upon completion of the exploration and development work program and share payment schedule detailed above, Adamas Resources will be vested at an undivided 70 percent equity interest in the Property. Beyond this point, future exploration and development costs would be shared pro-rata.

In other news, negotiations are continuing regarding a joint venture exploration and development proposal for a past producing gold mine located in central Zimbabwe. Further details will be released as they become available. -0-

Note to Editors: The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of contents of this News Release.

CONTACT: Adamas Resources Corp.

Investor Relations Department, 604/685-2248

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