Redaurum Limited--Kelsey Lake Colorado U.S.A.

TORONTO--(BUSINESS WIRE)--Aug. 15, 1995--REDAURUM LIMITED (TSE:RRK) Redaurum Limited (RRK-TSE) said today that comments made in its press release of 14 August 1995 may lead to confusion regarding the resource calculation at Kelsey Lake. Redaurum's consultant did not confirm or define the resource as was previously stated in that release. It is the Company's opinion that 16,908,000 tonnes of kimberlite can be expected to a projected depth of 100 metres from the KL1 and KL2 kimberlite pipes. This forecast is subject to kimberlite rock being continuous to 100 metres and deeper which from worldwide experience can be geologically expected to occur, and on the additional assumption that the pipes do not cone rapidly with depth. The average rate of coning indicated at the surface is in the order of 85 degrees and this was taken into account for the estimation of 16.9 million tonnes of kimberlite. However, by comparison, the River Ranch kimberlite shows no significant coning to a depth of 150 metres. Redaurum anticipates that additional drilling to a depth of 100 metres to define the resource should be completed by the end of the month.

CONTACT: Mr. Anthony Hamilton 

President and Managing Director, London

44 171 610 6070

or

Mr. Michael Coulter

Secretary, Toronto

[phone]

or

Mr. Graham Roberts 

Hambros Corporate Finance, London

44 171 865 1624

or

Mr. David Williams 

Hambros Corporate Finance, Melbourne

[phone]