Neary Resources Corp: Ruby Violet Mine Evaluation Underway.

VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--Aug. 8, 1997-- NEARY RES. (VSE NRY.) NEARY RESOURCES CORPORATION (the "Company") announces that the evaluation program for the Ruby Violet Mine (the "Property") in southwestern Utah has commenced.

The Company has an agreement, subject to VSE approval, to earn a 60 percent interest in Gemstone Mining Inc. ("Gemstone") and an option to acquire a further 30 percent interest in Gemstone. Gemstone acquired from Kennecott Exploration Company ("Kennecott") the option to purchase the Property located at Beaver Country, Utah, processing facilities and equipment as well as certain additional claims. Kennecott has an option to convert, under certain conditions, its 10 percent interest in Gemstone into a 10 percent equity interest in the Company. Details of the agreement were announced in the Company's news release dated June 9, 1997.

The field program commenced by Gemstone consists of a surface mapping and drilling program and an underground sampling program to collect a 1500 tonne sample for assessment in the pilot plant located in Cedar City, Utah which was constructed for the project by Kennecott in 1995-1996. This will be followed by cutting of the red beryl gems recovered from the bulk sample and a further market study will be undertaken to supplement the previous independent market analysis undertaken for Kennecott.

Data from this evaluation program will be used as the basis for a study of the economic feasibility of mining the deposit at an initial production rate of 25,000 carats per annum. The Feasibility Study will incorporate existing engineering and cost data from the Kennecott program. Preparation of this feasibility study is anticipated by January, 1998.

The following is an update of the program:

Drilling

A program of twelve (12) drill holes is underway in the area between the existing Upper and Lower pits on the Property on a 50 foot grid. This program is an integral part of Gemstone's efforts to upgrade resources on the Property from inferred resources to indicated reserves.

Six (6) drill holes have been completed, and a seventh drillhole is underway. Results obtained to date include: -0-

Hole       Intersection of       Occurrence of Visible Crystals
           Red Beryl Zone (ft.)  at the Following Points (ft.)

RVD-57     29.0 to 156.0         68.5, 126.3, 126.5, 137.1

RVD-58     22.5 to 154.8         none visible

RVD-59     17.5 to 120.3         66.5, 83.8
           123.4 to 126.5
           131.8 to 154.5

RVD-60     44.0 to 154.0         133.9, 134.8, 136.6, 143.7 to
                                 144.0 (4 crystals)

RVD-61     12.0 to 48.5          104.5, 111.5
           70.7 to 114.5

RVD-62     18.1 to 100.0         50.4, 59.4, 73.0 (3 crystals)

-0-

Albert Brantley, President of Gemstone Mining Inc. stated, "We are extremely encouraged by the results obtained from the drilling program to date. While not all the beryl crystals intersected in the drill core are gem-quality, the presence of beryl crystals in the core is an indication of extensive zones of red beryl mineralization which have been defined as a result of a much closer spaced drilling grid".

Mapping

Detailed surface mapping has commenced and is expected to be completed by mid-September, 1997. Mapping is concentrating northeast of the existing opencut on geophysical anomalies identified by Kennecott's 1995-1996 field program. After completion of all surface and underground work, results of the mapping will be incorporated in the revised geological model of the deposit.

Underground Sampling

Negotiations continue with potential contract miners for the program to collect another 1500 tonne bulk sample from the exploration drifts constructed by Kennecott's 1995-1996 field program. This sample will be processed in the pilot plant and is expected to produce additional red beryl gems for a study of the most appropriate cutting methodology and marketing strategy.

The underground work is expected to begin in mid-August to late August, 1997, and is dependent on completion of negotiations with the contract miners and on obtaining all required registrations for the underground work from the Mine Safety and Health Administration (MSHA) of the United States Department of Labor.

Plant Operations

A test run of the pilot plant has been completed utilizing material provided by Mulege International which has allowed for mechanical repair of the plant and preparation for the processing of the underground bulk sample.

In addition, approximately 500 tonnes of high grade material from the Kennecott's 1995-1996 program will be re-processed for additional red beryl recovery, and to confirm that only minor modifications in the design of the plant will be required for full- scale production processing.

Cutting Program

An agreement in principle has been reached with an experienced red beryl cutter to facet (or cut) the larger gems expected to be recovered from the pilot plant during the processing of the 1500 tonnes underground bulk sample and from the reprocessing of 500 tonnes of high grade material from the Kennecott program. The faceting of the larger stones will be undertaken in a facility currently under construction in Cedar City, Utah. Time and technology constraints will likely require the smaller (i.e. the "mele") stones to be cut in an overseas facility.

Marketing Study

Kennecott has made available to the Company an independent analysis of marketability of red beryl in the United States which was completed in 1995. Contact has been made with several international marketing and advertising organizations to determine which further marketing analysis and studies in the North American, European and Asian markets are still required.

Permitting

Work has begun on permitting for the production phase of the project in anticipation of a favorable result from the feasibility study. No significant problems have been identified which would delay successful permitting of the project. -0-

The Vancouver Stock Exchange has neither approved nor disapproved the information contained herein.

CONTACT: Neary Resources Corporation

Brian McAlister, 604/684-1474

or

Neary Resources Corporation

Lisa Zumpano, 604/684-4414 Today's News On The Net - Business Wire's full file on the Internet

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