Rex Diamond Mining Corp.: Kimberlex and Speer Darrow amalgamate to form Rex Diamond Mining/Private placements generate $8.3 million/trading commences on CDN

Business Wire, Sept 15, 1995

(b) the amalgamation of Kimberlex and Speer Darrow to form a continuing

corporation under the name of Rex Diamond Mining Corporation

("Amalco"). The outstanding common shares of Kimberlex and Speer

Darrow will each be converted into Amalco shares on the basis of one

Amalco share for each share of the respective predecessor companies.

As it is contemplated that all of the assets of Speer Darrow will be

sold prior to the amalgamation, the amalgamation will have no effect

on the net assets of Amalco. The shareholders of Kimberlex and

Speer Darrow will receive 21,983,859 and 933,500 shares of Amalco,

respectively.

REX DIAMOND MINING CORPORATION Notes to the Proforma Consolidated Balance Sheet March 31,1995

3. ACQUISITION OF CARRIG AND REXCOR BY KIMBERLEX

Pursuant to an agreement dated Jan. 13, 1995, Kimberlex purchased

52,000,000 Carrig shares representing 63.3% of the total Carrig

shares outstanding and 2,000,000 Rexcor shares representing 8.4% of

the Rexcor shares outstanding. The purchase price for such shares

was satisfied by the issuance of an aggregate of 7,500,000 common

shares of Kimberlex. In addition Kimberlex purchased 3,431,400

Rexcor shares representing 13.2% of the Rexcor shares outstanding

for cash of U.S. $1,765,556 (SAR 6,862,000).

The consolidated balance sheet of Kimberlex used as the basis of

accounting for the business combination described in Note 2 is as

follows:

Kimberlex Carrig Kimberlex

Non-consolidated Consolidated Consolidated

Balance Balance Balance

Sheet Sheet Consolidating Sheet

Mar. 31/95 Mar. 31/95 Entries Mar. 31/95

(U.S.)[1] (U.S.) (U.S.) (U.S.)

---------------- ------------ ------------- ------------

(in 000's) Cash $ 1,284 $ 455 $ $ 1,739 Other current assets - 887 887 Investment in Carrig and Rexcor 12,966 - (12,966) - Mining assets - 12,749 12,749 Other assets - 34 34 -----------------------------------------------------------------------

$ 14,250 $ 14,125 $ (12,966) $ 15,409 ======================================================================= Current liabilities $ 146 $ 1,595 $ $ 1,741 Long-term liabilities - 2,805 2,805 Minority interest - 3,356 (1,466) 1,890 Share Capital 14,105 5,051 (11,501) 7,655 Retained Earnings (Deficit) (1) 1,318 1 1,318 -----------------------------------------------------------------------

$ 14,250 $ 14,125 $ (12,966) $ 15,409 =======================================================================

(1) After giving effect to the proposed issuance of l,000,000 common shares for net proceeds of U.S. $1,140,000.