Ashton Discovers Two More Kimberlites in Alberta.

VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--Feb. 14, 1997--Ashton Mining of Can (TSE, ME ACA.) John S. Auston, President and CEO of Ashton Mining of Canada Inc. is pleased to announce that five further drill holes on the Company's drill program in Alberta have intersected kimberlites.

The five recent holes were drilled on two new kimberlite pipes, bringing to seven the number of pipes found so far within an area of 100 square kilometres.

Three of the holes were drilled from a single site on anomaly 5A, a large feature approximately 600 metres (1800 feet) in diameter. After penetrating a vertical thickness of 13 metres (42 feet) of glacial sediments each of the holes intersected olivine-dominated tuffaceous volcanic kimberlite displaying crater facies textures. A vertical drill hole on the adjacent anomaly 5B penetrated 74 metres (242 feet) of glacial sediments before intersecting similar kimberlite of crater facies.

A second vertical hole on anomaly 6, adjacent to an earlier hole, penetrated 74 metres (244 feet) of glacial overburden followed by kimberlite of diatreme facies.

Permits will allow drilling to continue until late February or early March. Upon completion of this first program many anomalies similar to those already tested will remain to be drilled in later programs, along with further investigation of those pipes already identified.

Petrographic study of cores from the first holes has now confirmed Ashton's early interpretation that the rocks intersected are kimberlites. Indicator minerals such as chromite, eclogitic pyrope garnets and peridotitic pyrope garnets have been positively identified in core samples. Detailed logging of the core and chemical analyses of indicator minerals will be conducted prior to analyses for diamond content by caustic fusion.

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 and Ashton have the right to earn interests of 15 percent and 42.5 percent interest respectively. Ashton is operator of the program. Landholdings comprise 5.8 million acres in the Buffalo Hills area of north central Alberta.

Ashton's results for the year ended December 31, 1996 show a net loss of $5,644,000 (1995 - $2,837,000) or $0.27 per share (1995 - $0.14). Corporate costs were $1,305,000 (1995 - $1,351,000) offset by investment income of $683,000 (1995 - $1,100,000). During the year, the abandonment of properties and programs determined to have low prospectivity resulted in a write-off of exploration costs of $5,335,000 (1995 - $2,559,000). During the first half of the year, a gain of $349,000 was realized on the sale of Ashton's interest in the James Bay joint venture. Total proceeds received on sale were $1 million. Exploration costs incurred in the year were $3,592,000 (1995 - $4,339,000).

Working capital at December 31, 1996 is $10,008,000 (1995 - $13,174,000). Cash and short-term deposits are $10,425,000 (1995 - $13,528,000).

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

Wayne D. Hillier, 604/983-7750