Ashton's diamond exploration update.

VANCOUVER, BC--(BUSINESS WIRE)--May 3, 1995--Shareholders of Ashton Mining of Canada Inc. (ACA) who attended the company's Annual General Meeting held yesterday in Vancouver, were given an update on the recent diamond exploration advances made by the company.

The James Bay Joint Venture, with KWG Resources Inc. was highlighted. The project located in Northern Ontario has now discovered a total of 5 kimberlites within the joint venture area.

Ashton is currently undertaking a test program to determine the content of commercial-sized diamonds of the Kyle Lake body at James Bay drilled during late March. Ashton's Dense Media Separation (DMS) plant is designed to recover those diamonds larger than 0.8mm.

The two most recent discoveries at James Bay, Kyle #2 and #3, are being tested for their micro diamond content. Results from this work will determine the next stage of evaluation.

In the Northwest Territories of Canada, Ashton currently is flying an airborne geophysical survey, covering its strong land position in the Camsell Lake - Mountain Province area. This area and the Cross region demonstrate that new kimberlite fields are being found outside of the established Lac de Gras region.

Encouraging results from Ashton's regional sampling programs elsewhere in the Slave Province are also leading to new targets being defined.

In the Lake Superior Joint Venture in the United States, drill targets are being generated from recently acquired geophysical data. In the quarter ended March 31, 1995, Ashton has incurred a net loss of $303,000 or $0.03 per share. Corporate costs not chargeable to exploration were $380,000 offset by interest income on short term investments of $274,000. Exploration costs charged to income were $197,000.

Activities during the period included exploration expenditures of $1,073,000 and capital asset additions of $37,000 with corporate costs and working capital utilizing cash of $447,000.

Working capital decreased $1,168,000 to $16,470,000 in the first quarter of 1995. This balance included $15,867,000 in cash and short term deposits.

Ashton Mining of Canada Inc. is a diamond exploration company with interests in a number of exploration properties in Canada and the United States. The company is 60 percent owned by Ashton Mining Limited of Australia, a leading diamond producer, explorer and marketing company.

CONTACT: Ashton Mining of Canada Inc., Vancouver

David M. Hurburgh, President & C.E.O., Tel: [phone]

INDUSTRY KEYWORD: MINING REPEATS: New York 212-575-8822 or 800-221-2462; Boston 617-330-5311 or