Ashton Reports Analyses and Progress of Field Programs.

VANCOUVER, British Columbia--(BUSINESS WIRE)--July 27, 1998-- John S. Auston, President and CEO of Ashton Mining of Canada Inc., reports results of analyses from the Buffalo Hills Project in north-central Alberta and the progress of summer field programs in Alberta, the Northwest Territories and Quebec.

Alberta Microdiamond Analyses

Samples from the final three of the nine kimberlites discovered last winter have now been analyzed in the North Vancouver and Perth laboratories. Each sample is from a vertical reverse circulation hole on targets in the eastern portion of the area. The results returned only one microdiamond from kimberlite K-32, while kimberlites K-93 and K-15 showed no microdiamonds. No further field work is planned at this time on these three kimberlites.

This completes microdiamond analyses of all 23 of the Buffalo Hills kimberlites discovered in the past 18 months. Sixteen of these have been determined to be diamondiferous and four with higher microdiamond counts havebeen mini-bulk sampled (K-14, K-5, K-6 and K-91). The widespread occurrence of diamonds confirms the broad prospectivity of this extensive new kimberlite province, where much investigation remains to be carried out.

Kimberlite K-91

Results from the analysis of a mini-bulk sample from kimberlite K-91 are nearing completion and are expected by the end of July.

Field Programs

Many aeromagnetic anomalies with possible kimberlite signatures remain to be investigated on the ground. Geophysical crews have begun surveys and will continue through the summer and fall months to define targets to be drilled under winter conditions. Mineral indicator sampling is also underway over wide areas.

The joint venturers on the central Buffalo Hills Project are Ashton Mining of Canada Inc. (ACA.TSE/ME, 42.5 percent), Alberta Energy Company Ltd. (AEC.TSE and AOG.NYSE, 42.5 percent) and Pure Gold Minerals Inc. (PUG.TSE, 15 percent). Ashton is operator of the programs.

Northwest Territories

The summer field program is underway on the Roundrock claims, on the large RIC and ROC claim blocks to the northwest of the Lupin mine and elsewhere in the Slave region. A total of about 900 samples will be taken for mineral indicator analysis in search of new kimberlites.

Quebec

Field sampling has begun again with a program of wide reconnaissance in northern Quebec.

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.

    CONTACT: Ashton Mining of Canada Inc.
              John S. Auston, 604/983-7750
              or
              Ashton Mining of Canada Inc.
              Susan Morrison, 604/983-7750
              E-mail: [e-mail]