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Gold/Mining/Energy : Black Swan -- Ignore unavailable to you. Want to Upgrade?

To: Dale Kohler who wrote (3144)	7/21/1999 1:36:00 PM
From: Dale Kohler	Read Replies (1) \| Respond to of 3186

Strategic Move into Diamond Trading Black Swan Gold Mines Ltd. ("Black Swan") is pleased to announce that its Board of Directors has decided to make a strategic move into the diamond trading business. The Company believes that a program of investment in special large or coloured stones will complement its ambitions to become a significant producer, finisher and marketer of both rough and polished diamonds. In line with this decision, the Company has made its first substantial investment in an exceptional diamond, weighing 79 carats and intense pink in colour. The diamond in question was discovered by artisinal miners (garimperos) working near to properties held by Black Swan, in the Abaeté River, close to the town of Três Marias in northern Minas Gerais, Brazil. The diamond has been christened "Estrela Rosa do Milênio" (Pink Star of the Millennium) by the local miners. WWW International Diamond Consultants Ltd. of London, England was retained by the Company and has confirmed the Company's view that the diamond in question is a very important stone, which because of its size and quality is exceptionally rare, if not unique. In recent years, polished diamonds of an intense pink colour and good clarity have sold in the range of US$400,000 to US$700,000 per carat. WWW have estimated that a realistic valuation for the rough diamond could be around US$130,000 per carat but, that due to tits exceptional nature, the price could greatly exceed this depending on the degree of desirability it has amongst a select group of individuals who may consider such a purchase. The Company now intends, along with its local partners, to further study the diamond and market it internationally. Similar investments will be made when the correct opportunities arise. With respect to the Company's operating activities, the first stage of due diligence on the Tejucana operation has not revealed any serious concerns. It is believed that the Company will be in a position to make a decision whether or not to exercise the option prior to the September 5 deadline. The Gamela JV at Coromandel (Black Swan has an option to earn 51%) is progressing well. The remaining equipment for the processing plant is currently being installed and final commissioning is expected to commence shortly. Once completed, it is expected that the plant will have the capacity to treat 2,000 cubic metres of gravels per day. Reports covering the first phase of exploration at Gamela have now been completed and applications to commence the bulk sampling phase are now being lodged with the government agencies. Sampling work will commence once the necessary permitting is in place. Speaking today, Mr Stephen Fabian, President of Black Swan, said "historically Brazil has produced some of the world's most important fancy large and coloured diamonds and entering into the trading business, which I believe will be profitable in its own right, is also a natural step forward in our ambition to become a vertically integrated diamond company". This news release contains certain forward-looking statements that involve risks and uncertainties. In the light of the inherent risks and uncertainties in any forward looking statement, such statements should not be construed as a representation by the Company that the contents will materialise. Furthermore, the Company relies on litigation protection for forward looking statements. For further information contact: Val Mazur, Public Relations Tel: 1-604-688-2595 Fax: 1-604-662-8429 Toll-free: 1-877-252-5796 Stephen Fabian, President Tel: 011-5531-9961-1670