Ashton Discovers Kimberlitic Pipes in Alberta.

NORTH VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--Jan. 27, 1997-- ASHTON MINING OF CANADA (ME, TSE: ACA.) John S. Auston, President & CEO of Ashton Mining of Canada Inc. is pleased to announce that the first two holes in a program of drilling in north-central Alberta have intersected kimberlitic rocks.

These drill holes on two separate geophysical anomalies are the first in an initial program designed to test 10 anomalies, all of which display the characteristics of kimberlite-style volcanism.

After penetrating 34 metres (113 feet) of glacial sediments the first vertical diamond drill hole on anomaly 7B passed into olivine-dominated fragmental and tuffaceous material displaying possible crater and diatreme facies textures. The drill hole remained in this volcanic-textured material until termination at 154 metres (505 feet).

A second vertical hole on separate anomaly 7C penetrated 36.6 metres (120 feet) of glacial overburden and passed into kimberlitic rocks similar to those in the first hole. It remained in these volcanic rocks to a depth of 91.4 metres (300 feet), at which point it was abandoned because of difficult drilling conditions. Drilling is now continuing on a third anomaly.

The rock types are interpreted by Ashton to represent pipes (diatremes) which have intruded from the basement through a thick column of overlying younger sediments to the pre-glacial surface. The core will be tested for indicator minerals and diamond content at Ashton's laboratory in Vancouver, and petrographic studies will be undertaken to determine the diamond potential of the discovery.

These results from drilling of the first two anomalies are highly encouraging, and many anomalies of similar size and geophysical character remain to be tested. Ashton is optimistic that these may prove to represent a new kimberlite province in Canada.

Landholdings in the Buffalo Hills area have been further expanded recently and now cover approximately 2.4 million hectares (5.8 million acres) in contiguous blocks.

As reported previously, Ashton Mining of Canada Inc. and Pure Gold Resources Inc. have entered into an option agreement with a large Alberta energy company whereby Pure Gold has funded the first $500,000 of exploration expenditures and Ashton has the option to fund the next $5 million to earn interests of 15 percent and 42.5 percent interest respectively, following which the three companies would form a joint venture. Ashton is operator of the program.

Ashton is a diamond exploration company with interests in a wide range of properties in Canada and the United States. It is 62 percent-owned by Ashton Mining Limited of Australia, a leading explorer, producer and marketer of diamonds which holds an interest of 40 percent in the Argyle diamond mine in northwestern Australia.

CONTACT: Ashton Mining of Canada Inc.

John S. Auston, 604/ 983-7750 or

Wayne D. Hillier, 604/ 983-7750