Ashton Exploration Update.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Aug. 8, 1997-- Ashton Mining of Canada (TSE, ME: ACA.) John S. Auston, President and CEO of Ashton Mining of Canada is pleased to provide an update of Ashton's North American exploration activities.

BUFFALO HILLS PROJECT, ALBERTA

Recent drilling on geophysical anomaly K14C has found a new kimberlite pipe, bringing to 16 the total number of kimberlites discovered since January of this year. K14C is 300 metres northeast of pipe K14 and 250 metres east of the previously-announced kimberlite K14B. Geophysical interpretations suggest that K14C is a separate and distinct geophysical target closely associated with the original K14 pipe. Delineation drilling will be required to fully evaluate the spatial relationships of these kimberlites.

Elsewhere on the property reverse circulation drilling for mini-bulk samples has been completed on pipes K14 and K6 and two coring rigs are presently drilling on the large K5 complex.

To date approximately 14 dry tonnes of kimberlite from pipes K14 and K14B have been received at Ashton's Vancouver laboratory. Further kimberlite material is being collected through core drilling and test pitting from these and other pipes and will be transported to Vancouver at regular intervals. Analysis of these mini-bulk samples by dense media separation commenced in late July and will continue through September. Final processing and observation of the concentrates will follow and it is anticipated that final results will be available by mid to late October.

In Ashton's Vancouver laboratory the first microdiamond samples from pipes K1A, K1B and K14B have been completed. The results indicate that all of these recent discoveries are diamondiferous, although K1A and K1B returned only very low microdiamond counts. K14B returned higher microdiamond and macrodiamond results similar to those previously reported from K14. The results from the recent analyses are tabulated below. -0-

                                             Number of Stones
                                             less     greater
Kimberlite  Sample   Interval    Sample Wt   than      than
& Hole No.  Number     (m)         (kg)      0.5 mm    0.5 mm

1A-1        1A-1-1   32.4-39.8     46.6       1         0
1B-1        1B-1-1   40.8-50.0     43.1       1         0
14B         14B-1   surface pit    36.0      39         2

    Note: Microdiamonds are stones with a maximum dimension of less
than 0.5 mm and greater than 0.1 mm.  Macrodiamonds are stones with
one dimension equal to or greater than 0.5 mm.

NORTHWEST TERRITORIES PROJECTS

During June and July Ashton completed nine drill holes on the Roundrock Property. Two of these were drilled into the previously discovered diamondiferous Aquila kimberlite and the remaining seven holes tested geophysical anomalies related to nearby indicator dispersion fans.

Two drill holes in the Aquila kimberlite intersected limited intervals of kimberlite and brecciated granitic material and recovered approximately 150 kg of kimberlite. The recent drilling has indicated that the Aquila body is highly irregular, smaller than originally anticipated, and unlikely to be of economic dimensions. Drilling of geophysical anomalies intersected kimberlite dykes up to three metres in width in two separate drill holes 500 metres and 1500 metres north of the Aquila kimberlite.

Elsewhere in the Slave region, exploration activities are concentrating on the collection of heavy mineral samples on Ashton's various other properties.

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 40.1 percent in the Argyle diamond mine in northwestern Australia.

CONTACT: Ashton Mining of Canada Inc.

John S. Auston, 604/983-7750

or

Ashton Mining of Canada Inc.

Wayne D. Hillier, 604/983-7750