Adamas Resources - Negotiation for West African Acquisition.

VANCOUVER, British Columbia--(BUSINESS WIRE)--July 31, 1996-- ADAMAS RESOURCES CORP. (VSE: AMS) Adamas Resources Corp. (the "Company") is pleased to announce that further to the Company's news release of July 24, 1996 it has entered into negotiations for the acquisition of an advanced stage gold deposit with drill proven reserves, located in West Africa. Balfour Holdings is assisting in the incorporation of an African subsidiary and securing related permits and agreements for the purposes of formalizing this acquisition. Further details will be released as available.

The Company further announces that it has negotiated a Private Placement with one individual for 300,000 units at a price of $0.33 per unit (the "Placement"). Each unit of the Placement will be comprised of one common share and one non transferable, 2 year share purchase warrant, exercisable at a price of $0.33 per share in the first year and at $0.37 in the second year. Upon closing, the Placement will net the Company $99,000.00, which will be allocated for property acquisitions. A finders fee of 30,000 common shares is payable in regards to the Placement. -0-

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CONTACT: Adamas Resources Corp.

Investor Relations Department, 604/685-2248

604/685-5509 (Fax)

800/686-6220

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