Dia Met Minerals: NWT Diamonds Project.

KELOWNA, British Columbia--(BUSINESS WIRE)--Feb. 4, 1997--DIA MET MINERALS (AMEX, TSE, VSE:DMM.A)(AMEX, TSE, VSE:DMM.B ) BHP has delivered the final feasibility study for the NWT Diamonds Project to its joint venture partners in Canada.

This study was required under the joint venture agreement and follows the completion of the permitting and licensing process.

The final regulatory approval requirements for the development of the NWT Diamonds Project were completed on January 7, 1997. These were:

- the issuance of an 8-year Class A Water Licence by the NWT Water Board and Minister of Indian Affairs and Northern Development (DIAND), related specifically to development of the Panda, Misery and Koala pipes;

- the issuance of six 30-year land leases by DIAND; and

- the signing of the Environmental Agreement by DIAND, the Government of the NWT (GNWT) and BHP after consultation with four Aboriginal groups.

This completes a two and a half year approval process including a federal Environmental Assessment Review Process (EARP). Regulatory approvals for pipes other than Panda, Misery and Koala are expected to be sought in conjunction with applications for the renewal of the Class A Water Licence.

The feasibility study details the development plan for five kimberlite pipes, namely Panda, Misery, Koala, Fox and Sable and covers 17 years of operation. Three additional pipes, including Leslie, which have been bulk sampled, may have economic potential, and a further five pipes, which have not been sampled for macrodiamond content, show sufficient encouragement at the present time to warrant additional sampling. Given these prospects and continuing exploration, the joint venture anticipates a project life in excess of that taken in the feasibility study. Apart from the substitution of Sable for Leslie, all other major elements of the mine development plan, such as processing, tailings disposal and site reclamation plans remain the same as in the Environmental Impact Statement.

Construction of the mine site infrastructure for the NWT Diamonds Project has commenced. Critical activities over the next four months will be the completion of the permanent accommodation complex and the delivery of fuel and construction materials over the 1997 winter road. The winter road is now open, and in excess of 2,000 tractor trailer loads are scheduled to be shipped. Contracts for the major buildings and plant facilities have been awarded. The workforce of the site will remain at about 250 people until the accommodation quarters are completed in April 1997, when the workforce will increase to approximately 800 people on site. Prestripping operations will begin in the spring of 1997, and production from Canada's first gem quality diamond mine is expected in the second half of 1998.

Dia Met has just received the feasibility study and, upon review, will provide additional details. -0-

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

CONTACT: Dia Met Minerals Ltd., Kelowna

James E. Eccott or Grant L. Miller, 604/861-8660

604/861-3649 (FAX)