DIA MET Minerals - NWT Diamonds Project.

KELOWNA, British Columbia--(BUSINESS WIRE)--Nov. 5, 1996--Dia Met Minerals Ltd (AMEX, TSE, VSE DMM.A, AMEX, TSE, VSE DMM.B ) On November 1, 1996, the Minister of Indian Affairs and Northern Development (DIAND) and the Premier of the Northwest Territories (NWT) announced that the NWT Diamonds Project has received final approval from federal Cabinet for development and that the project now has full government support.

The project remains subject to the ongoing regulatory process, which involves finalizing the water licence and the land lease. The permitting process is underway for both of these.

The government announcement follows a period of intense negotiations on a number of agreements between BHP and the federal government, the government of the NWT, the Treaty 11 Dogrib, the Treaty 8 Yellowknives Dene, the Inuit of Kugluktuk and the Metis of the NWT. The results of these negotiations are as follows:

An implementation protocol for the environmental agreement has been signed by BHP, DIAND, the GNWT and by the four Aboriginal groups. A finalized agreement is expected to be signed after the water licence is issued.

The Impact and Benefit Agreement (IBA) between BHP and the Dogrib has been signed.

Negotiations on the IBA between the affected Treaty 8 First Nations and BHP are being finalized, and both parties remain optimistic about concluding it in the very near future.

Progress in negotiating the IBA's with both the Metis of the NWT and the affected Inuit has been made, and all parties are hopeful that negotiations will be concluded in the near future.

The GNWT and BHP have signed a socioeconomic agreement to guide the project.

Dia Met and our joint venture partner, BHP Diamonds Inc., would like to congratulate all the stakeholder groups on their hard work towards completion of these agreements. We have been impressed by the cooperation and commitment which has been so evident throughout these discussions. We believe that together we have established an excellent foundation for good, long-term relationships between the local stakeholders and the NWT Diamonds Project.

With the government's announcement of Cabinet approval, it is now possible to complete the permitting and licensing for the NWT Diamonds Project. The engineering design work is well advanced so that major contracts for construction can now be let. The critical activities at the site over the next five months will be the construction of the permanent accommodation camp and the transport of supplies for construction up the 1997 winter ice road. The workforce at the site will remain at about 200 people until the accommodation quarters are completed in April, 1997, when it will then increase to approximately 800 people. BHP Diamonds Inc. has a hiring preference for Aboriginals and residents of the NWT.

Dia Met and BHP look forward to bringing Canada's first gem-quality diamond mine into production in the second half of 1998.

SIGNED ON BEHALF OF THE BOARD OF DIRECTORS JAMES E. ECCOTT, PRESIDENT

The American Stock Exchange, Toronto Stock Exchange and the Vancouver Stock Exchange have neither approved nor disapproved the information contained in this release.

CONTACT: DIA MET Minerals Ltd.

James E. Eccott, 250/861-8660

or

DIA MET Minerals Ltd.

Grant L. Miller, 250/861-8660