Ashton Mining: De Beers Launches Takeover Bid for Principal Shareholder of Ashton Mining of Canada Inc.

Business Editors

VANCOUVER, B.C.--(BUSINESS WIRE)--July 31, 2000

Ashton Mining of Canada Inc. (TSE:ACA.) reports that the Corporation's principal shareholder, Ashton Mining Limited of Australia ("AML"), has received notice that De Beers Centenary AG ("De Beers") intends to make a takeover bid for all of AML's issued and outstanding shares at a price of $1.62 (Australian) per share.

As announced on June 13, 2000, AML holds approximately 24.5 million shares of the Corporation's common shares representing 68.2 per cent of the 35.9 million shares which are currently issued and outstanding.

AML has also announced that its largest shareholder, Malaysia Mining Corporation Berhad ("MMC") has entered into an agreement under which MMC is obliged to accept De Beer's offer for 19.9 per cent of AML's shares. MMC holds 49.9 per cent of AML's shares.

The transaction is valued at $522.2 million (Australian) and is subject to certain terms and conditions established by De Beers. The Chief Executive Officer of AML, Mr. Doug Bailey, has described the offer as inadequate and opportunistic, and has urged AML shareholders not to tender their shares.

In announcing the bid, De Beers has stated that it has no obligation to make a follow-up offer to the minority shareholders of Ashton Mining of Canada Inc. as a consequence of the proposed transaction.