Ashton receives $1 million for James Bay interest and maintains 25 percent entitlement in joint venture.

VANCOUVER, British Columbia--(BUSINESS WIRE)--April 16, 1996-- Ashton Mining of Canada ("Ashton" or "ACA") is pleased to report the sale of its James Bay Joint Venture entitlement to KWG Resources Inc. ("KWG") for $1 million.

Under the terms of the sale agreement, Ashton will be paid $1 million over a four-month period and upon full payment Ashton will relinquish its 51 percent entitlement in the Joint Venture. Under the terms of the new agreement Ashton will retain a 25 percent clawback right into any diamondiferous discovery (excluding the Kyle #1 property) and will have the option of exercising that right by reimbursing KWG 300 percent of exploration and evaluation costs of the said discovery prior to the decision to mine.

Ashton is very pleased with the negotiated terms as they allow Ashton to maintain a significant interest in the area through its 25 percent clawback right into any diamond mine that KWG may locate in the James Bay Joint Venture area. A further advantage derived from the new agreement is that Ashton will no longer be incurring exploration expenditures associated with this project area.

In addition, the KWG payments will place $1 million into Ashton's treasury and these funds will allow Ashton to focus greater commitment and expenditures to its own diamond exploration initiatives in the highly prospective Northwest Territories.

Ashton Mining of Canada Inc. is a diamond exploration company with interests in a wide range of exploration properties in Canada and the United States. The company is 62 percent owned by Ashton Mining Limited of Australia, a leading international diamond exploration, mining and marketing company.

CONTACT: Ashton Mining of Canada Inc.

David M. Hurburgh, 604/983-7750