Leader Mining International Inc. — Airborne Magnetic Survey Reveals Additional Kimberlite Pipe-Like Signatures

Business Wire, March 12, 1999

CALGARY, Alberta--(BUSINESS WIRE)--March 11, 1999--Leader Mining International Inc. (ASE:LMN)--

KARMEL PROJECT, SOUTH AFRICA

The Karmel diamond pipe (termed as the "K-1" pipe) with a production history, displays a distinct circular magnetic response to the airborne mag survey. Numerous additional circular magnetic signatures have been identified, suggesting the presence of new kimberlite pipes on the Karmel Diamond Project.

The diamondiferous fissures on the Property (The Dundee Fissure, Southern Fissure), also display a distinct magnetic response.

Initial petrographic studies, including a microprobe study of some 200 indicator mineral grains from samples from the K-1 pipe, Karmel Fissure, Dundee Fissure and Southern Fissure, were interpreted by George Read Consulting Inc. of Vancouver, B.C., Canada. The report concludes that the abundant high chromite contents of the xenocrystic chromites suggests that the Karmel kimberlites have sampled diamondiferous peridotite mantle.

Ground truthing of the interpreted magnetic anomalies will begin in early April. This will include geological mapping and local ground magnetic surveys to specifically locate and delineate anomalies for immediate exposure and sampling.

A Prospecting Permit is underway in order to facilitate the bulk sampling of the K-1 pipe.

The Karmel Project covers an area of approximately 7,500 hectares and is located on the Kaapvaal Craton, recognized as the most prospective diamond exploration area in the world. Leader Mining is funding the project and on completion will have earned a 75% interest in the project by spending $1.5 million; the Project Operator, Poplar Resources Ltd., will hold a 25% interest.

The Alberta Stock Exchange has neither approved nor disapproved of the information contained herein.