DIA MET/BHP NWT DIAMOND PROJECT.

VANCOUVER, BC--(BUSINESS WIRE)--Dec. 12, 1994--DIA MET MINERALS LTD.(TSE, VSE:DMM) BHP, the project operator, has provided the Canadian Government with an updated Project Description for its Northwest Territories diamond project for use by the recently appointed Environmental Review Panel. The document provides basic information on the project and its environmental effects compiled with data from continuing exploration and feasibility work by the Dia Met/BHP joint venture.

The highlights include:

-The proposed development plan has been enlarged from three to five diamondiferous pipes, based on the on-going bulk sampling program. The target pipes are Panda, Misery, Koala, Fox and Leslie.

-The potential project life can be expanded to twenty five years, with the inclusion of the two additional pipes.

-The first production is expected in 1997, on the assumption that the Government grants authorization for development in 1995. Initial production will be at 9,000 tonnes of kimberlite per day, rising to 18,000 tonnes per day in the tenth year of production.

-The kimberlite pipes will be developed in a phased approach, using a combination of conventional open pit and underground mining. One central processing unit will serve all pipes.

The Canadian Minister of the Environment announced membership of the four person Environmental Review Panel on December 9, 1994. The Panel has responsibility for the Environmental Assessment and Review Process (EARP), the highest level of environmental review in Canada. The Project Description will assist the Review Panel to establish the guidelines for the Environmental Impact Statement for the project and subsequent public hearings.

The 1994 summer exploration program for the project in the Northwest Territories, involving 4,700 metres of diamond drilling discovered 13 new diamond bearing kimberlite pipes. This brings the total to 39 confirmed pipes on the Dia Met/BHP property. Small samples from each new pipe have been submitted for analysis.

The planned 1995 winter exploration program will extract one to two hundred tonne samples from four or five pipes using the same reverse circulation drilling techniques as in past programs.

An underground bulk sampling program of the Fox pipe has been completed with the extraction of 6,915 tonnes of kimberlite. The sample yielded 11,960 diamonds weighing 1,766 carats, for an overall grade of 0.26 cts/dmt. Evaluations of the diamonds are not yet complete. Initial appraisals indicate an average value per carat in the US$120 range.

The underground workings have sampled one of several layers in the Fox pipe. Currently two raises are under development to sample the area immediately above the existing workings. Additional surface drilling is also planned this winter to sample the other identified layers within the pipe.

Underground sampling of Panda is progressing. To date 2,835 tonnes of kimberlite have been processed to yield 13,242 diamonds weighing 2,557 carats for an overall grade of 0.90 cts/dmt. The diamonds appear to be of similar quality to those extracted during the 1994 winter drill program.

Commercial evaluations by diamond dealers for the Fox and Panda samples are scheduled to be completed in December.

The landing strip at Koala has been lengthened and improved. It is now operational, has been utilized by a 727 aircraft and is capable of handling Hercules freighters.

A bulk sampling program is also being planned for the Misery pipe this coming winter, subject to acquiring the necessary approvals from Government authorities. Additional sampling by reverse circulation drilling is also planned for the Leslie pipe.

As a result of the larger project scope, resulting impacts on the sampling program and more rigorous permitting requirements for remaining exploration work, inadequate data has been collected to complete an internal feasibility study anticipated by year end. Similarly, a slow initiation of the EARP panel review is likely to delay the start of project construction into 1996 and commencement of commercial production to the third quarter of 1997.

ON BEHALF OF THE BOARD OF DIRECTORS CHARLES E. FIPKE, GEOLOGIST AND DIRECTOR

NOTE TO EDITORS: The Toronto Stock Exchange and the Vancouver Stock Exchange have neither approved nor disapproved the information contained in this release.

CONTACT: Charles Fipke

              Geologist and Director
              604/861-8660

REPEATS: New York 212-575-8822 or 800-221-2462; Boston 617-330-5311 or