CORRECTION - Diadem Acquires Rights to Two Properties in Indonesia.

TORONTO, Ontario--(BUSINESS WIRE)--Nov. 10, 1995--DIADEM RESOURCES LTD. (ME:DIR) DIADEM RESOURCES LTD. is pleased to announce that it has secured the rights to acquire interests in two properties in Indonesia through two separate joint venture agreements. The first agreement is designed to recover gold from alluvial gravels in the modern and ancient Kahayan River Valley. The second agreement is to develop base metal deposits and tin deposits on Belitung Island.

The first joint venture agreement with P.T. Mercu Buana Raya Contractors (MBRC) has been concluded whereby Diadem may acquire a 60 percent interest for an expenditure of the greater of US$1,500,000 or the cost of completing a full feasibility study on the Tewah Gold Project in central Kalimantan. The Kahayan River Valley follows a north-south fault plane cutting through and draining a mineralized gold belt that hosts a number of recently discovered major gold deposits.

Since 1987, more than US$3.6 million has been spent on exploration and engineering of this project. Two significant alluvial resources have been drill indicated which contain an estimated mineable resource of between 900,000 and 1,300,000 ounces of gold, depending on the gold price, and could be extended.

The second joint venture agreement with P.T. Gunung Ki-Kara Mining (GKM) has been concluded whereby Diadem may acquire a 90 percent interest for an expenditure of US$1,000,000 over two years to develop base metal deposits and tin deposits on Belitung Island.

The project contains one of the most important known primary tin deposits in the southeast Asian tin belt. Tin mining and exploration has been carried out by Billiton (1906-1942), BHP (1971-1985), Preussag (1985-1989) and GKM, who suspended operations in 1993 due to low tin prices.

During tin exploration a zinc-lead-silver mineralized zone was identified in a sedimentary bed with an indicated strike length of 6 km and zones within it ranging up to 20 m width and grades in the order of 10.6 percent zinc, 7.7 percent lead over 10 m width. Previous estimates of potential mention up to 35,000,000 tonnes at 7.3 percent zinc and 2.9 percent lead.

Diadem intends to initially drill and bulk sample the zinc-lead deposit, prior to a feasibility study which will include the tin potential also.

Diadem has agreed to pay to GKM 50,000 common shares prior to proceeding with exploration and an additional 50,000 shares upon approval in principal by the Department of Mines.

The consummation of each of the joint venture agreements is subject to all required regulatory and Montreal Exchange approvals, as well as the approval of the Indonesian Department of Mines. Completion of Diadem's obligations under each of the joint venture agreements will require suitable strategic relationships with third parties and/or additional financing.

CONTACT: A. C. A. Howe

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Lina Noble

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