Band-Ore Resources - 1/4 Carat Diamond Recovered From GQ Property In Wawa, Ontario.

Business Editors

BURLINGTON, Ontario--(BUSINESS WIRE)--June 18, 2001

S.E.C. EXEMPTION NO. 82-4233

SHARES O/S: 27.02 MILLION

Band-Ore Resources is pleased to report the recovery of a 0.254 carat diamond described as a broken, white octahedral measuring 3.74mm by 3.30mm by 3.10mm from a 12.5 tonne exploration sample. This clearly demonstrates that larger, commercial sized diamonds are present in the Engagement Zone ("EZ") (formerly called the area "E" diatreme). The 0.254-carat stone recovered from the GQ Property is the largest diamond recovered from a bedrock source in the Wawa area.

In addition to the 0.254 carat diamond, twenty-nine (29) other diamonds ranging in size from 3.06 mm to 0.70mm were also recovered from this sample. Twenty-seven (27) of the diamonds had two dimensions greater than 1.0 mm, four (4) of which had two dimensions greater than 2.0 mm. The diamonds varied in colour; 13 white, 6 yellow, 3 pink, 3 brown, 2 gray and 3 black diamonds. The procedure selected for the processing of the sample recovers diamonds with at least two dimensions greater than .85mm. The Company's main reason for extracting and processing such a sample at this early stage of exploration was to determine if larger commercial size diamonds occur in association with the previously reported anomalous micro and macro diamond results from the Engagement Zone.

The Company extracted and shipped the 12,542kg exploration sample to the diamond processing facility of Saskatchewan Research Council (SRC) in Saskatoon, Saskatchewan, an experienced laboratory in the recovery of diamonds. Standard laboratory security, processing and quality control protocols were assured by the laboratory. Diamonds were extracted by caustic digestion of a 0.85mm to 8mm heavy mineral jig concentrate.

The results of the 12.5 tonne exploration sample (a total of 30 diamonds weighing 0.607 carats) compare favorably to previous results obtained by caustic fusion processing. To date, the Company has processed 11 samples (389.4kg) by caustic fusion from the Engagement Zone, recovering more than 12,000 diamonds, including 319 macrodiamonds (diamonds with at least one dimension greater than 0.5mm). Of the 319 macrodiamonds recovered by caustic fusion processing, 2 diamonds had two dimensions greater than 0.85 mm, and only these diamonds would have been recovered by the jig process employed on the exploration sample.

The company also reports that it has received the results for caustic fusion processing of two additional samples in the vicinity of the Engagement Zone. One sample was collected approximately 100 metres northwest of the location of the exploration sample. Sample 51263 weighing 46.8kg, contained 47 macrodiamonds and 446 microdiamonds. These results compare favourably with other diamond results from the Engagement Zone. This sample demonstrates that the high diamond content of the EZ diatreme continues for a length of at least 250 metres.

A second sample was collected some 300 metres due north of the Engagement Zone and likely represents yet another diamond bearing breccia. The 32kg sample contained 10 microdiamonds. Numerous near source boulders were also located along the same northwest trend.

The significant early results and the need for further geological information has led the company to make the decision to initiate a diamond drill program during the summer to further establish the dimensions and confirm the geometry of the Engagement Zone. Processing of several additional multi tonne samples will be required in order to further evaluate the economic diamond potential of the EZ diatreme. Additional mechanical stripping, trenching, mapping and technical studies are also planned for this summer and fall, both on the Engagement Zone and other similar breccias that remain virtually unexplored in other areas on the GQ Property. Numerous macrodiamonds have been recovered from these identified but unevaluated breccias.

Based on the geological interpretation and the significant results from the EZ diatreme, the Company has submitted an application to acquire an additional 14 square kilometers in the immediate area of the GQ property.

Immediately adjacent to the north of the GQ Property, Pele Mountain Resources Ltd. today announced five (5) new diamond discoveries. Three of the new discoveries are located 1 km or less from the northern boundary of the GQ Property. All of the diamond discoveries on the Band-Ore property strike northwest-southeast, as do the enclosing rock units implying some relationship between the diamond discoveries on the two properties.

The Company also announces that on June 15, 2001 it completed a private placement of 139,000 flow-through special warrants at $0.72 per warrant, raising gross proceeds of $100,080. Each special warrant is exercisable, for no additional consideration, into one flow-through common share and one-half of one common share purchase warrant. Each common share purchase warrant entitles the holder to purchase one common share of Band-Ore at $1.00 until December 15, 2002. The proceeds of the offering will be used to continue the exploration of Band-Ore's GQ Diamond Property.

THE PRESS RELEASE WAS PREPARED BY BAND-ORE RESOURCES LTD. WHICH ACCEPTS THE RESPONSIBILITY AS TO ITS ACCURACY. NO REGULATORY AUTHORITIES OR SIMILAR BODY, HAVE APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.