Ashton Appoints New President and Finds Diamondiferous Pipe in NWT.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Aug. 7, 1996-- Ashton Mining of Canada Inc. ("Ashton") is pleased to welcome John S. Auston as a Director and the Company's new President and Chief Executive Officer. Mr. Auston's appointment, effective August 7, 1996, follows David M. Hurburgh's return to Australia earlier this year to head up Ashton Mining Limited's Business Development Group.

Mr. Auston is a Canadian geologist who brings to Ashton a broad background in the mining industry, having worked in exploration, project development and mining activities in Canada, the United States and Australia during a career spanning 36 years. Most recently he was President and CEO of Granges Inc. and Hycroft Resources of Vancouver. He will lead Ashton's continued exploration efforts as its highly-experienced technical staff pursues an extensive program of exploration for diamonds in a number of regions of North America.

Ashton's activities in the second quarter included drilling programs on the Noront No. 1 and the Roundrock properties in the Slave region of the Northwest Territories. The Aquila pipe was intersected on the Roundrock property. Microdiamond results from two samples weighing approximately 25kg each have been received and confirm that the Aquila pipe is diamondiferous. In total, 9 microdiamonds were recovered from the two samples. Ashton is very encouraged by these results as they indicate the presence of a diamondiferous pipe in a new region of the Slave. Consequently, Ashton has increased its summer exploration programs on this property in an effort to identify additional indicator mineral trends and drilling targets.

Summer exploration activities include geophysical and sampling programs on a number of properties throughout the Slave region. The objective of these programs is to follow up on previously identified anomalies, leading to the identification of further targets to be drilled later in the year or in early 1997. A separate program is also underway to better define the gold and base metal prospectivity of selected areas in the Slave, following Ashton's extensive heavy mineral sampling programs over the last three years.

Elsewhere in North America, Ashton is providing technical support to assist with the State-run 10,000 tonne sampling program of the Crater of Diamonds in Arkansas. Ashton has an option to earn a 51 percent interest in the project from Texas Star Resources Corp., following a full evaluation of the results of this program and after a successful outcome to the eventual joint bid for the mining rights in the Crater of Diamonds. Also underway is a regional grass-root exploration program in Quebec under a 50-50 joint venture with SOQUEM (Societe quebecoise d'exploration miniere)

No specific exploration programs are planned in 1996 under the Lake Superior Joint Venture with Crystal Exploration Inc. in Upper Michigan, Illinois and Wisconsin. The exploration rights on a number of properties have been maintained while other properties no longer deemed of interest have been abandoned.

The results for the first six months of the year reflect a loss of $3,719,000, or $0.18 per share, after write off of previously deferred exploration costs of $3,773,000. During the period, Ashton recognized a gain of $349,000 on the sale of its interest in the James Bay Joint Venture for proceeds of $1,000,000. Exploration costs for the period were $1,648,000.

As at June 30, 1996, Ashton has cash and short term deposits of $12,213,000 and a working capital of $12,238,000 to support its ongoing exploration activities.

In addition to past and current exploration activities which have led to the discovery of thirteen kimberlites to date, specific new opportunities are being evaluated with the objective of continually increasing and upgrading Ashton's existing exploration portfolio. Ashton is encouraged by its progress to date, and is committed to continued exploration to ultimately fulfill its objective of becoming a successful Canadian diamond mining company.

Ashton Mining of Canada Inc. is a diamond exploration company with interests in a wide range of exploration properties in Canada and the United States. The Company is 62 percent owned by Ashton Mining Limited of Australia, a leading international diamond exploration, mining and marketing company.

CONTACT: Ashton Mining of Canada Inc.

Wayne Hillier, 604/993-7750