VANCOUVER, March 3/CNW-AsiaNet/ - A news article in today's Globe & Mail, (Rob March 3, 1997), alleges that DiamondWorks' rights to the Koidu diamond property located in Sierra Leone are being challenged by a Mr. Jean-Raymond Boulle and by Sunshine Mining Co. Neither Mr. Boulle nor Sunshine Mining Co. have bothered to notify the company of their supposed claims. DiamondWorks categorically and vehemently rejects any allegations that it does not have full and proper rights to the prized Koidu diamond property. Such allegations are completely unfounded and possibly libellous. The company considers the allegations as reported by the Globe & Mail to be spurious and without substance. The Globe & Mail gave DiamondWorks no opportunity to comment on the alleged claims before publishing its story. DiamondWorks' subsidiary, Branch Energy Ltd., was granted a 25-year renewable mining lease ("Lease Agreement") on July 22, 1995, more than a year before DiamondWorks acquired Branch. The Lease Agreement grants an exclusive right to carry out exploration and mining operations for diamonds, gold and associated minerals in the area of Sierra Leone known as the "Koidu diamond property." The following facts should be noted, which stand in direct contrast to the allegations contained in the Globe's article: 1. The Lease Agreement of July 22, 1995, is registered in the office of the registrar General, Freetown, Sierra Leone, in the Books of Mining Leases. 2. The Lease Agreement was subsequently ratified by the government of Sierra Leone under the Koidu Kimberlite Project Mining Lease Agreement (ratification) Decree No. 12 of 1995. 3. Legal opinions obtained from Siera Leone counsel by DiamondWorks confirm that such legislative ratification is the "best title that can be obtained for any piece of property or mineral right" under the laws of Sierra Leone and can only be revoked by legislation repealing such Decree. 4. Legal opinions provided by Sierra Leone counsel to DiamondWorks have confirmed that exclusive right of Branch Energy Ltd. to carry out exploration and mining operations on the Koidu diamond property. 5. By letter dated September 26, 1996, the Director of Mines of the Ministry of Mineral Resources of Sierra Leone confirmed that the ratified Lease Agreement held by Branch Energy Ltd. on the Koidu property was current and valid. Written confirmation of the status of this lease was updated by the Ministry of Mineral Resources of Sierra Leone in December of 1996. 6. To qoute taday's Globe & Mail article: "T.L. Belewa, the current director of mining in Sierra Leone, also agress that DiamondWorks has the title." DIAMONDWORKS WILL TAKE STRONG AND PRE-EMPTIVE LEGAL ACTION AGAINST ANYBODY OR ANY COMPANY SPURIOUSLY CLAIMING TITLE TO ANY OF DIAMONDWORKS' ASSTES AND, IN SO DOING, DAMAGING SHAREHOLDERS VALUE. DiamondWorks Ltd. Eric V. Friedland Chairman and CEO DiamondWorks' shares trade on the Vancouver Stock Exchange under the symbol DNW. The Vancouver Stock Exchange has not reviewed and does not accept responsibility for adequency or accuracy of this release. For further information: Eric Friedland, Chairman and CEO (604) 669-8871