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Gold/Mining/Energy : Star Resources Corp. (SRR.TSE) (SRRCF.NASDAQBB)

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To: Paul Watkins who wrote (28)	12/3/1996 4:14:00 PM
From: Paul Watkins	of 76

Here's the latest progress report from the crater... Crater of Diamonds State Park Evaluation Program Progress Report #13 Friday, November 29, 1996 Introduction This progress report covers the project activity for the week ending Friday, November 29, 1996. Drilling Contract Drilling commenced on Friday of the proceeding week and progressed throughout the weekend. A major storm began on Friday and precluded any work on Sunday November 24. Drilling performance was hindered on Saturday and Monday but did proceed. Hole #96-2 was drilled vertically to a total depth of 283.5 ft. The hole was completed on Tuesday, November 26 in the novaculite gravel bed which marks the contact zone with the host sedimentary rock. The drilling site was secured and cleaned on Wednesday morning and drilling activity was suspended for the Thanksgiving holiday weekend. Excavation / Transport No haulage or excavation occurred from Friday November 22 through to Tuesday November 26 (5 working days) due to heavy rains. The major storm over the weekend flooded the Trench #9 site and all of the haul roads. Clear weather on Tuesday allowed the Park access roads to be graded. The roads were sufficiently dry for the excavation of Trench #9 to commence by 10:00 am on Wednesday November 27. Approaching storms required that the trench excavation was completed on Thanksgiving Day. Backfilling and rough grading were completed prior to the heavy rains which commenced on Friday November 29. Quantities Trench #9 11/27/96 295.73 tons 11/28/96 359.23 tons Total 654.96 tons Plant Operation Due to the inclement weather as described above no ore was delivered no the plant until Wednesday. All of the prior trenches had been processed by Friday November 22. In order for the trench excavation to catch up, the plant was shut down for the Thanksgiving week except for limited maintenance and daily circulation of the FeSi solution. The plant was drained to prevent damage from freezing weather. Diamond Recovery Lakefield Research completed the diamond recovery and attrition operation for Trench #2 on Saturday November 23. No other diamond recovery was conducted during this reporting period. Diamond Sorting No diamond sorting was conducted during this reporting period. It is proposed to conduct diamond sort on the recovered concentrate on Monday December 2 / Tuesday December 3. The Press Release detailing the diamond recovery results will probably be issued at 4:30 pm on Wednesday December 4, depending on the progress of the diamond sort activity. For further information please contact: Star Resources Corp. Tel: (713) 870-9882 E-Mail: dedwards@compassnet.com WWW: pwatkins.com

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