Adamas Resources Enters into Agreement to Acquire 100 percent Interest in Hercules Gold Project, Nevada.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Feb. 11, 1997-- Adamas Resources Corp. (VSE:AMS) ("the Company") is pleased to announce that it has entered into a binding Letter of Intent ("the Agreement") for an option to acquire a 100 percent interest in the Hydra - Hercules property ("the Project"), located in the Como Mining District, Lyon County, Nevada.

Exploration work to date indicates a large, near surface economic gold system which justifies aggressive additional delineation drilling. Using a cut-off grade of 0.019 oz. Au/ST, current proven and probable open pit reserves at the Project total 7,312,612 ST at an average grade of 0.023 oz Au/ST and 0.159 oz. Ag/ST (containing 169,746 oz. Au and 1,164,369 oz Ag). Possible additional reserves, based on extensions to known ore reserves and resources, are estimated at 20 to 50 million tons grading on the order of 0.040 to 0.045 oz Au/ST, representing a total potential resource of approximately 2.0 to 2.5 million ounces of gold and upwards of 18 million ounces of silver. The reserves are defined by drilling, surface and underground sampling, and are located in several proximal, partially delineated zones. Hydra - Hercules ores are amenable to open pit mining and heap leach processing. Prior metallurgical testing by Kappes Cassiday & Associates indicated average recoveries of 88 percent Au and 66 percent to 75 percent Ag.

PROJECT LOCATION

The Project consists of 84 unpatented lode claims, covering approximately a 2.5 square mile area at the northern end of the Pine Nut Mountains in the Como Mining District of northwestern Nevada. The state capital of Carson City lies approximately 15 air miles to the west and Virginia City, site of the famous Comstock Lode, is located about 7 miles to the northwest of the Project. The past mineral producing Hercules mine lies within the Project boundaries.

GEOLOGY

Epithermal gold mineralization, hosted by Tertiary age andesitic flow and pyroclastic volcanic rocks, occurs over a wide area of the claim boundaries of the Project. Shallow gold-silver mineralization occurs in at least ten separate en echelon zones, with surface dimensions ranging from 800 to 3,000 feet in length and 15 to over 300 feet in width, all along a partially drilled out V-shaped trend. Each leg of the trend is approximately 9,000 feet long.

The relative size of the epithermal gold-silver system, and analogy with other nearby similar type, age and host rock precious metals deposits indicate that there is an excellent possibility of significantly enhancing the Project's current reserve base.

TERMS OF THE AGREEMENT

Upon closing, the Company will hold a 100 percent interest in the Project so long as advance annual royalty payments and the BLM/county filing fees on the Project's claims are paid each year. Adamas Resources will also be required to complete a minimum annual work program of US$100,000.

Total consideration to be paid for the Project is US$200,000 plus a five percent (5 percent) Net Smelter Returns (NSR) production royalty. The Company will have the right to acquire the NSR royalty in its entirety for US$4,500,000; alternatively, Adamas Resources may "buy-down" the NSR royalty on the basis of US$1,000,000 per percentage point (1.0 percent).

PLANNED EXPLORATION PROGRAM

Company anticipates spending at least US$1,000,000 on exploration, development and permitting work at the Project, with an emphasis on drilling vertical and lateral extensions to known reserves, with an objective of significantly expanding the Project's reserve/resource base; a secondary objective will be to drill-test other gold anomalies/targets identified on the Property.

The Company and the Project Owners anticipate signing a definitive purchase agreement within the next ten to fifteen days following receipt of a title opinion on the Project.

Adamas Resources is a gold exploration and development company active in North America and Africa. The Company's shares trade on the Vancouver Stock Exchange (VSE) under the symbol AMS. -0-

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.

Investor Relations Department, 604/685-2248

604/685-5509 (FAX)

1-800-686-6220