UNITED REEF LIMITED - POTENTIAL RESOURCE EXPANDING RAPIDLY ON THE BAMINGUI DIAMOND PROPERTY.

TORONTO--(BUSINESS WIRE)--Nov. 24, 1994--United Reef Limited (URP-TSE) said today that exploration has been progressing rapidly on the Bamingui Diamond Property in the Central African Republic ("CAR").

Exploration sampling along the Bangoran River, eight kilometres north of the Bamingui River commenced on November 7th. Currently 96 sample sites have been excavated, testing both the right and left banks of the drainage system over a distance of roughly 2.6 kilometres. The sampling indicates that the elevated gravel terraces reach widths of up to 600 metres, with the gravel horizon exhibiting an average thickness of 0.40 metre. More than half of the sample sites have produced gravel suitable for processing, and bulk samples will be excavated from these sites and transported to the Company's pilot plant for processing.

The Company's pilot plant continues to process the stockpile of Bamingui River exploration samples. A total of 316 sample sites excavated thus far have tested the terraces over a distance of approximately 4.6 kilometres along the Bamingui River system. The average recovered grade of the gravel processed to date is 0.29 carats per bank cubic metre (BCM). Individual sample results have ranged from a low of 0.08 carats per BCM to a high of 0.75 carats per BCM. To date, a total of 1,429 diamonds with a total weight of 552.2 carats have been recovered as a result of exploration sampling of the Bamingui River deposits.

Sample excavation has also started within the low-lying alluvial flats of the Bamingui River. The alluvial flats occupy the floor of the present-day drainage system, and extend over a distance of approximately 8 kilometres within the property, averaging approximately 300 metres in width. Two large samples of this alluvial gravel were excavated and processed through the Company's pilot plant during the past week. The first sample, measuring 67.2 BCM (approximately 125 tonnes) resulted in the recovery of 81 diamonds with a total weight of 28.6 carats. A second sample, measuring 61.4 BCM resulted in the recovery of 52 diamonds with a combined weight of 17.65 carats, as well as approximately 0.5 grams of fine gold. The calculated grade of these exploration samples were 0.43 carats per BCM and 0.29 carats per BCM, respectively. Management is encouraged by these initial results, and anticipate that the gravels contained within the alluvial flats will exhibit a higher average grade than those found within the elevated terraces that mark the edges of the present-day Bamingui River drainage system.

The Company is offering it's initial exploration parcel of 420 carats of diamond for sale by tender in Antwerp later this month. Previous valuations of these diamonds indicated an average value per carat of over US $150.

CONTACT: Michael Coulter, President,

                         or
              Kenneth Johnson, Vice President, 416/368-0993