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Gold/Mining/Energy : A CANADIAN DIAMOND HUNT -- Ignore unavailable to you. Want to Upgrade?

To: bill who wrote (665)	1/31/2002 2:37:55 AM
From: VAUGHN	Read Replies (1) \| Respond to of 930

Hello Bill MGJ News Release: Date: January 30, 2002 Trading Symbol (CDNX-MGJ) Shares Issued: 42,099,328 News Release #02-05 FOR IMMEDIATE RELEASE MAJOR GENERAL TO SEEK APPROVAL FOR FORMATION OF NEW DIAMOND COMPANY Vancouver, B.C. -- Shareholders of Major General will be asked to approve a reorganization of the company’s corporate structure leading to the formation of a new diamond company. The new structure would see Major General’s existing shares being consolidated on a three-for-one basis. Shareholders of the consolidated Major General would receive shares in a yet to be named new diamond company on the basis of one share for every 3.5 shares held in the restructured Major General. Holders of share purchase warrants in Major General will receive warrants in the restructured Major General and the new diamond company consistent with standard anti-dilution provisions. The new diamond company will apply to have its shares listed on the Canadian Venture Exchange. Directors of Major General said the proposed reorganization is being recommended to provide greater awareness of the company’s extensive mineral and diamond properties. All existing diamond prospects will be transferred to the new diamond company, while Major General will retain its mineral resource property and royalty interest. The Board is recommending acceptance of the plan on the basis it is a significant opportunity to increase shareholder value. Approval requires 75% of the votes cast at the next annual general meeting to be held in May 2002 and will be subject to approval of the Supreme Court of British Columbia and to acceptance by the Canadian Venture Exchange. The new diamond company will be funded by a brokered equity financing on terms yet to be determined. Initial capital will be provided by a loan from the consolidated Major General, which will be convertible by Major General into the diamond company shares at a price equal to the planned brokered financing. Major General will also retain a 9.9% equity position in the diamond company and a royalty of 2% on production. Properties located in Nunavut to be transferred to the new diamond company include: Washburn; Adamas; Yankee; Tahoe; Mariner; and Blue Ice and in the Northwest Territories include Misty Lake and Kidme. During the 2002 season, expenditures of $Cdn 2 million are planned for the diamond properties. Canadian properties to be retained by Major General include: Hammerdown Royalty, Abe-Pal, Green Bay, Sabin, Sarah Lake, Despinassy, Sally, Adlatok 1, Nepisiguit, Olympic and Stewart. Shares in Major General are traded under the symbol MGJ on the CDNX Senior Board. William J. Coulter President Regards Vaughn