Ashton Updates Buffalo Hills Exploration Program.

VANCOUVER, B.C.--(BUSINESS WIRE)--Oct. 2, 1997--Ashton Mining of Can (TSE, ME ACA.) John S. Auston, president and CEO of Ashton Mining of Canada Inc., is pleased to provide an update on Ashton's exploration activities on the Buffalo Hills Project, Alberta.

Ashton's summer exploration program in Alberta was completed in early September. Drilling and surficial pitting collected 5 tonnes of kimberlite from K5, 8.5 tonnes from K6, 27 tonnes from K14 and 10 tonnes from K14B. These mini-bulk samples have been transported to Ashton's Vancouver laboratory and processing by Dense Media Separation is ongoing. The first results from this mini-bulk testing are expected in late October.

In Ashton's Vancouver laboratory a second small sample from hole K14C-1 has been processed by caustic fusion for microdiamonds. The samples are from a short vertical rotary percussion hole which was abandoned at a depth of 30 metres because of water inflows. In the summary below a distinction has been made between relatively whole crystals and those fragments of diamond formed by breakage of larger stones.

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Kimber-         Sample    Microdiamonds        Microdiamonds
lite &          Weight   Less than 0.5mm    Greater than 0.5mm
Hole No. Sample  (kg)   Crystals Fragments  Crystals Fragments

K14C-1    1(X)   43.4      58       270         3       90
K14C-2     2     45.6      94         0         1        0
Total            89.0     152       270         4       90

(X) reported  earlier

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Microdiamonds are stones with a maximum dimension of less than 0.5 mm and greater than 0.1 mm.

As reported earlier sample 1 contains a high count of diamond fragments formed by breakage of an unknown number of stones. Sample 2 shows no evidence of such breakage while confirming a high microdiamond count.

The results from kimberlite K14C remain very encouraging. As stated previously, larger samples will be required to evaluate its potential. Two core drill rigs will commence drilling within the next week both to collect a mini-bulk sample from K14C and to initiate delineation drilling on K14B and K14C.

Ashton Mining of Canada Inc. and Pure Gold Resources Inc. have an option agreement with Alberta Energy Company Ltd. of Calgary whereby Pure Gold and Ashton have the right to earn interests of 15 percent and 42.5 percent respectively in the Buffalo Hills Property. Total landholdings, including option and joint venture lands, comprise 28.3 million acres in north central Alberta. Ashton is operator of the related exploration programs.

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

604/987-7107 (FAX)

or

Ashton Mining of Canada Inc.

Wayne D. Hillier, 604/983-7750

604/987-7107 (FAX)