Ashton advances North American diamond exploration interests.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Nov. 17, 1994--In the 12 months since Ashton's (TSE,ME:ACA,ACT.WT) initial public offering, the company's exploration portfolio has been substantially upgraded with the discovery of six kimberlites in its main project areas.

The company's diamond exploration strategy is based upon a long term perspective. To this extent, much of the work done over the last nine months has been directed towards broad regional coverage. This program has led to the definition of new prospects and the generation of additional drill targets. The company is of the view that this work will lead to further success.

The discovery of the Cross kimberlite in the Northwest Territories (NWT) earlier this year and subsequent test work have confirmed the area as a new kimberlite field. The completion of the 1994 summer sampling program in the NWT resulted in the collection of 3,200 heavy mineral samples.

From early results received to date, this sampling will generate drill targets in known prospective areas, such as the Cross, and identify new prospects in previously unexplored areas.

Recent discoveries of new indicator mineral anomalies in the Great Lakes Joint Venture area in the United States have given impetus to the company's plans in this region. The James Bay Joint Venture with KWG Resources Inc. has seen activities increase substantially in the past quarter, with an extensive program of aeromagnetic surveys and associated claim staking being undertaken.

Future activities in both joint venture areas will include detailed geophysics and staged drill follow-up.

The company reported a net loss for the nine months ended Sept. 30, 1994, of approximately $0.9 million or $0.04 per share. Corporate expenses not chargeable to exploration of $1.8 million were offset by interest on short-term investments of $0.9 million. Total expenditures during the period were $8.3 million including $4.4 million on resource properties and $0.5 million in fixed asset additions.

Operating activities utilized cash of $3.4 million. Working capital decreased from $24.9 million at Dec. 31, 1993, to $19.2 million at Sept. 30, 1994.

Ashton Mining of Canada Inc. is a diamond exploration company with interests in a number of exploration properties in Canada and the United States. The company is 60% owned by Ashton Mining of Australia, a leading diamond producer, explorer and marketing company.

CONTACT: Ashton Mining of Canada Inc., Vancouver

David M. Hurburgh, 604/983-7750