Adamas Resources Corp.: First Hole Completed on Crescent Valley Property.

VANCOUVER, British Columbia--(BUSINESS WIRE)--July 8, 1996--Adamas Resources Corp. (VSE: AMS) ("Adamas") announces that a close spaced (100'X 200') resistivity survey was recently completed on the Desert Rose Property by Practical Geophysics of Salt Lake City, Utah. Survey results reveal the presence of several drill targets, represented by co-incident high angle structures, anomalous high resistivity and anomalous spontaneous potential responses. The first of two drill holes planned to test this target has recently been completed to a depth of 800 feet and the section from 650-800 feet was sampled and sent to Chemex Laboratories in Elko, Nevada for analysis. Additional holes to be drilled on the UH Claims following the Desert Rose Property drilling.

The bedrock from the first hole consisting of cherts and siliceous volcanics with minor carbonates. Silica rich zones carry some fine pyrite. Limonitic staining is present along fracture zones. Preliminary evaluation suggests that this combination of rocks, may be representative of the interface between the western siliceous/volcanic facies assemblage and the lower plate carbonates which host the major gold deposits in the area. This zone was sampled in 5 foot intervals and first assay results for gold and silver are expected in 4 to 7 days.

The Company further announces that it is in discussion with a major mining group, in regards to the acquisition of concessions in Central Africa and Brazil. The Company is meeting with the group this week in an effort to finalize an arrangement regarding the acquisitions.

The Company's trading symbol is VSE:AMS.

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

CONTACT: Adamas Resources Corp.

Investors Relations Department, 604/685-2248

800/686-6220

Email: [e-mail]

Internet: http://www.kisto.com