Ashton Finds Another Kimberlite In Alberta And Announces 1999 Plans.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Dec. 22, 1998--ASHTON MINING (TSE:ACA.) (ME:ACA.) John S. Auston, President and CEO of Ashton Mining of Canada Inc. (Ashton), is pleased to report discovery of a third kimberlite in the early-winter program of drilling on the Buffalo Hills Project in north-central Alberta.

The new kimberlite, designated BM-3, is 13 kilometers southeast of kimberlite K-11 within the Birch Mountain property. It was discovered by a vertical core drill hole under 117 metres of overburden.

This new discovery brings to 26 the number of kimberlites found since inception of the program in early 1997. Drilling now has been suspended for the Christmas season.

The joint venturers Ashton, Alberta Energy Company Limited (AEC) and Pure Gold Minerals Inc. (PUG), have agreed on 1999 reconnaissance programs and budgets for Alberta in the amount of $7.4 million. Ground and airborne geophysical follow-up work will resume early in January, followed by drilling of new targets in early February.

PUG has elected not to contribute to the later stages of the 1998 programs and the programs currently agreed for 1999. In accordance with dilution provisions agreed between the three parties, Ashton and AEC have undertaken to share equally the funding for those program expenditures not provided by PUG in return for additional points of interest in the related properties. These additional interests in relation to the 1998 programs and the programs currently agreed for 1999 will be a maximum of 2.5 points for each of Ashton and AEC on the Buffalo Hills and Joint Venture Lands (Buffalo Hills, Birch Mountain, Loon Lake, Rabbit Lake and Muddy River properties), 0.5 points each on the K-14 kimberlite Project Area, and 9.5 points each on the Cayo Lands (Caribou Hills, Athabasca, Lesser Slave and Whitemud properties). It is anticipated that the interests of Ashton and AEC at December 31, 1998 will have increased from 42.5 percent to approximately 43.0 percent on the Buffalo Hills and Joint Venture Lands and from 25.5 percent to approximately 30 percent on the Cayo Lands. The dilution provisions stipulate that any Party whose interest is reduced because of non-contribution may have certain rights to resume its earlier position by payment of a penalty.

Ashton is a diamond exploration company with interests in a wide range of properties in Canada and the United States. It is 61.2 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.