Dia Met Minerals: NWT Diamonds Project Exploration and Development Update.

KELOWNA, BRITISH COLUMBIA--(BUSINESS WIRE)--Aug. 21, 1997--Dia Met Minerals Ltd (TSE, AMEX DMM.A., TSE, AMEX DMM.B.) Dia Met Minerals Ltd. is pleased to announce that the total number of confirmed kimberlites on the NWT Diamonds Project has risen to 100. This follows exploration core drilling for the summer 1997 season which commenced in April, 1997, and was completed on August 8. The program resulted in the discovery of 23 new kimberlite bodies.

Of these 23 new discoveries, 16 are located in the Core Zone claims in which Dia Met holds a 29 per cent interest. Seven are located in the Buffer Zone claims in which Dia Met holds 7.8 per cent interest.

Samples of split core have been submitted to an independent laboratory for microdiamond analysis to determine the diamond carrying potential of each new discovery. These analyses should be complete within the next two months.

The drilling program also delineated and collected samples for analysis from two previous discoveries which show economic potential. The pipes are named Koala North and Beartooth. Each pipe produced initial microdiamond analysis comparable to both the Panda and Koala pipes. Both are located in the immediate vicinity of the Panda- Koala mine development area. New drilling information is being evaluated and core splits have been submitted to an independent laboratory for additional microdiamond analyses. The joint venture partners may elect to bulk sample both pipes for macrodiamond content if the current technical evaluation is positive. Both pipes appear to be comparatively small.

As of July 31, 1997, approximately $455 million Cdn has been spent on the project, including exploration. The project is expected to be completed on time and within budget. Construction is approximately 40 per cent complete and is progressing well.

Foundations have been completed and steel is being erected on all major buildings, including the process plant, primary crusher, truck shop and warehouse, storage buildings, power plant, and security building. These buildings are targeted to be enclosed by mid-October to facilitate construction during the winter months.

As of July 31, over four million tonnes of rock, which is required for roads, dykes and other construction purposes, has been extracted from the Panda pit. This work is proceeding on schedule, at a rate of about one million tonnes per month.

The on-site workforce has been averaging about 750 people over the past two months. Approximately 45 per cent of construction employment is being filled by northern residents, including 19 per cent by aboriginal people. These levels exceed targets established for the construction phase. A safety milestone was reached on July 31 with 500,000 person hours worked without a lost time accident.

Dia Met Minerals Ltd. is a publicly traded mineral exploration and development company with a primary focus on diamonds. The company holds a 29 per cent interest in the North West Territories Diamonds Project (joint venture) with BHP Diamonds Inc. The joint venture is developing the first major commercial diamond mine in North America. The Company is also involved in diamond and gold exploration projects in other parts of the world.

CONTACT: Dia Met Minerals Ltd.

Gerald Prosalendis, 250/861-8660

Fax: [phone]

e-mail: [e-mail]

or

Dia Met Minerals Ltd.

James E. Eccott, 250/861-8660

Fax: [phone]