Antares Acquires Diamond Prospects from Randgold.

TORONTO--(BUSINESS WIRE)--Aug. 3, 1999--

Antares Mining and Exploration Corporation (TSE:ANZ.) is pleased to announce that it has signed an agreement with Randgold & Exploration Company Limited covering their 50 percent interest in the mineral rights of the Witkrans prospect and their 100 percent interest in the mineral rights of the Kafferskraal prospect, both prospects located approximately 120 kilometres west of Johannesburg, in the alluvial diamond producing Ventersdorp district of South Africa.

The Witkrans prospect is situated 35 kilometres north of the town of Ventersdorp and encompasses 3,856 hectares. It covers the northwestern extension of the Vetpan-Hartebeeslaagte alluvial diamond deposit, which has produced an estimated 42,160 carats of diamond to date. While this deposit has been mined extensively on the neighbouring Vetpan and Hartebeeslaagte properties immediately to the east, little to no production has been undertaken on Witkrans.

Diamonds were first discovered on the property during the late 1920s as a result of a prospecting rush to the area. A reconnaissance geological survey completed by Antares has indicated that the Vetpan-Hartebeeslaagte deposit extends across this prospect in a northwesterly direction, covering a strike length of approximately seven kilometres, and exhibiting surface widths ranging between 100 and 200 metres. It is encouraging to note that the diamondiferous gravels that have been excavated on the neighbouring Vetpan property extend right up to the fence-line that marks the boundary between the two properties.

Antares will hold prospecting rights for a three year period. Title to the mineral rights will pass from Randgold to Antares at the time of a production decision, at which time Antares will pay to Randgold a production royalty of 5 percent of the gross value of diamond sales from Randgold's 50 percent interest. Antares expects to complete negotiations for the remaining 50 percent mineral rights on Witkrans shortly and exploration is planned to begin thereafter. Assuming successful exploration results, Antares plans the immediate initiation of a trial mining program on the prospect.

The 2,098 hectares Kafferskraal prospect located 25 kilometres west of the Witkrans prospect is situated along the Wildfontein diamond run which produced over 86,000 carats between 1904 and 1984. The agreement with Randgold regarding Kafferskraal is the same as with Witkrans, and preliminary exploration on this prospect will begin shortly.

Diamonds recovered from gravels in the Ventersdorp District are renowned for their high quality and large average stone size and are normally sold at values of over U.S.$400 per rough carat. Recent media releases quote De Beers' officials confirming significant demand for gem diamonds due to strong U.S. and improving Asian markets resulting in a 44 percent increase in overall Central Selling Organization revenues.

Antares is also pleased to announce that Mr. Kenneth W. Johnson has joined the Antares Board. Mr. Johnson is President and CEO of Vaaldiam Resources Ltd. and brings to Antares considerable experience related to the diamond exploration and production sector.

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