United Reef Limited--1994 exploration of Bamingui property expands resource to over 450,000 Carats.

TORONTO--(BUSINESS WIRE)--Jan. 12, 1995 --United Reef Limited (URP-TSE) announced today that the 1994 exploration program on its Bamingui diamond property in the Central African Republic ("CAR") has now outlined gravel resources containing 451,321 carats of diamonds.

The Company's exploration efforts to date have primarily focused on the Bamingui River drainage, which represents only 4% of the total property area. Exploration sampling during 1993 had defined a gravel resource containing 80,000 carats of diamond. However, during 1994, exploration was directed towards the expansion of that resource, and a total of 320 additional sample sites were excavated within the elevated terraces along the Bamingui River, covering a distance of over 4 kilometres. This resulted in the definition of gravel resources along the river of approximately 710,000 bank cubic metres (BCM) of gravel at an estimated grade of 0.21 carats per BCM and equates to a resource containing approximately 150,000 carats of diamond. Exploration also identified a potential resource within the alluvial flats of the Bamingui River of an additional 482,000 BCM of alluvial gravel, which at an estimated grade of 0.20 carats per BCM, could contain an additional 100,000 carats of diamond.

Sampling along the Bangoran river, 8 kilometres north of the Bamingui River commenced during late 1994. A total of 123 sample sites were excavated along this river, covering a distance of approximately 3.2 kilometres. This sampling effort identified a potential gravel resource of 958,800 BCM, which could contain approximately 200,000 carats of diamond. Additional sampling along the Bangoran River will be completed in early 1995. Four new areas of the property, with geological features identical to the Bamingui/Bangoran River deposits, are also targeted for detailed sampling in 1995.

Management is extremely encouraged by the exploration success achieved to date. Over 1,910 diamonds with a combined weight of 743 carats, have been recovered from the Bamingui property from exploration, with an average stone size of 0.39 carats. Over 85% of the diamonds recovered are gem quality. The sale in December of two parcels of diamonds in Antwerp with a combined weight of 416 carats resulted in an average value of U.S. $180 per carat.

During 1994 the Company also completed the construction of a pilot processing plant which recovered 1,417 diamonds with a total weight of 532.5 carats. Coarse gold has also been recovered by the plant and the continued recovery of gold during the processing of the gravel is expected to have a positive effect on the economics of the project.

Based on the results achieved from exploration to date, the Company has started a pre-feasibility study of full scale production on the Bamingui property. This study is expected to be completed during the first quarter of 1995 and should result in a production decision.

The Company is also pleased to announce that it has acquired the rights to two alluvial diamond deposits, approximately 150 kilometres south of the Bamingui property. This new exploration permit, known as the Boungou River property, covers approximately 412 square kilometres and encompasses both the Djourou and Aigbando diamond deposits, which are presently hand-mined by local artisans. The Aigbando deposit is the site of the largest diamond find in the CAR where one stone weighing 215 carats was discovered in 1991. Exploration completed by French interests in the early 1960's resulted in the recovery of 3,381 carats of diamond from the Aigbando deposit at a grade of 0.33 carats per cubic metre of gravel. A total of 8,551 carats of diamond was recovered during exploration efforts in the Djourou River deposit area, and indicated a grade of 0.27 carats per cubic metre for the gravels in this area. United Reef has granted Belore Mines Limited (BOE - ASE) the right to acquire a 40% interest in the property through the expenditure of Cdn $250,000 on exploration on the property. Exploration of the permit area is expected to commence shortly.

CONTACT: United Reef Limited

             Michael Coulter, President or
             Kenneth W. Johnson, Vice President, Exploration at
             416/368-0993