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Gold/Mining/Energy : Trump's 12 Diamond Picks, Discussions Limited -- Ignore unavailable to you. Want to Upgrade?

To: Tomato who wrote (991)	6/29/1998 3:09:00 PM
From: George J. Tromp	Respond to of 2251

Just off the wire: TORONTO, ONTARIO--Rex Diamond Mining Corporation announced today that it has completed a $US3.0 million debt financing with European investors. The financing consists of a non-interest bearing convertible note for $US2.0 million maturing on June 1, 1999 and convertible into two million Rex shares at $US 1.00 per share. In addition a non-interest bearing loan of $US1.0 million payable on December 15, 1998 has been completed on account of future rough diamond purchases with a local industry group, for which Rex has granted the right of first refusal for all diamond production in sizes of less than 1.80 carats. Proceeds of the loans will be used to repay a maturing debenture of $US3.0 million which had right of first refusal on the entire diamond production. Rex will now be able to optimize its return on the marketing of large stones (+1.80 carats), representing more than 2/3 of its production and very much in demand in the current diamond market. South Africa The focus in the first six months of 1998 was the reduction of total cash costs at the South African mines. The effort to restructure operations and workforce at the South African mines is nearing completion. Increased efficiency and the 50 percent consolidation of the workforce has been achieved without significantly affecting production levels and has substantially reduced the net burn rate of the company. The reduction in manpower levels was offset by a continuous training (to multi-function) and upgrading of the workforce combined with the introduction of new mining practices (long-hole stoping) and the establishment of central technical services. In the next six months emphasis will be given to upgrade and mechanize equipment, to open up greater areas of Rex's existing ore reserves and to the establishment of an exploration unit at the South African mines in order to further develop new reserves. The resulting increased production is expected to achieve for Rex a zero net burn rate and a positive contribution towards general expenses of the company. Mauritania The first group of pyrope-rich depressions, identified at the end of April for trenching, were found to be underlain by a 1 km wide and at least 8 km long alluvial gravel layer, roughly 1 m thick, and covered by 2 m of overburden. This gravel, rich in kimberlite pyropes, is now being sampled up-stream with a view to locating the kimberlite source rock. In coming months Rex plans to mobilize a jig plant for testing the diamond content of the alluvial gravel layer. The regional sampling in the 72,000 km(2) exploration permits is progressing according to plan and should be completed by April 1999. Sierra Leone The situation is gradually improving and the government has confirmed Rex's mining concession in Tongo Fields and Zimmi. Rex is currently evaluating the possibility of an early resumption of mining activities after the rainy season (Nov. 1998). Rex Diamond Mining Corporation is a fully integrated group of diamond operating companies ranging from exploration through to mining and marketing of high-quality gem diamonds. The Company has operating subsidiaries in South Africa, Sierra Leone, Mauritania, Liberia and Antwerp, Belgium. Serge Muller President and CEO -30- FOR FURTHER INFORMATION PLEASE CONTACT: Rex Diamond Mining Corporation Ben Holemans, Antwerp +(32)3-205-9060 Website: www.rexmining.com E-mail: Info@rexmining.be or Rex Diamond Mining Corporation Ross Orr, Toronto + (1)416-955-9033 Website: www.rexmining.com

To: Tomato who wrote (991)	6/30/1998 12:04:00 AM
From: VAUGHN	Read Replies (1) \| Respond to of 2251

Hello Tomato I do not deny that as that is always a possibility, although I have doubts a major would bother with such an apparently small deposit with a short mine life. In my opinion, it is more likely a medium producer with deep pockets and patience, who would consider picking up the property at a bargain, but again, ore volume remains the key. Lots of nice little 1 to 2 million oz gold mines operate around Canada but they are generally located where there is infrastructure and costs are lower. The majors not always, but generally look for elephants. With sufficient ore, this dyke would be not too different from a small shear hosted or folded iron Au deposit, but like such a property, it will take $$ to prove up. Good luck PS. Thanks Walt