Rex Discovers "Mini Pipe"; Production to Double and Mill Throughput to Triple at the Rex Mine

Business Wire, Nov 16, 1995

TORONTO--(BUSINESS WIRE)--Nov. 16, 1995--Rex Diamond Mining Corporation ("Rex Diamond")(CDN: REXD) today announced that it has encountered a significant widening of the main fissure on the 5 level West at the Rex Mine in South Africa. The mini pipe appears to be approximately 35 metres in diameter compared with a current fissure width of about 0.5 metres. In addition, drilling has encountered a second mini pipe further along the same fissure. This additional ore can be mined at a significantly lower cost than the normal fissure ore.

As a result of these discoveries, Rex Diamond estimates that throughput will triple from the current rate of 6,000 tons per month to approximately 18,000 tons per month beginning in January or February 1996. This increased throughput will allow the recently expanded mill at the Rex Mine to operate at full capacity in mid-1996, a year earlier than previously had been anticipated. Production from the Rex Mine is 92 percent gem- quality with an average sales price of US$220 per carat. Undiluted grade is 50 carats/100 ton. Production grade is 25 carats/100 ton.

Rex Diamond Corporation comprises three profitable, gem-quality diamond mines in South Africa. Production from the Ardo, Rex, and Bellsbank mines averages more than US$240 per carat with an estimated mine reserve of at least 18 years. In addition to producing high-quality diamonds, the company owns sorting and marketing facilities in Antwerp, Belgium, and an extensive portfolio of advanced exploration properties in South Africa and Sierra Leone. The company estimates that it will produce at least 70,000 carats in its fiscal year ended March 31, 1996 and 160,000 carats in its fiscal year ended March 31, 1998.

CONTACT: Rex Diamond Mining Corp.

Ross Orr, 416/777-0001

Chris Cory, 416/777-0001