Mr. Charles Fipke of Metalex reports

METALEX RECOVERS LARGE WHITE DIAMOND FROM U2

Metalex Ventures Ltd. has released preliminary macrodiamond results from the second of 11 holes from the nine-hectare U2 kimberlite pipe on the Metalex-Arctic Star Diamond Corp. joint venture in the James Bay lowlands, Ontario.

A 0.52 carat white diamond has been recovered from the second bulk-sample hole from U2. The diamond passes through a 4.750-millimetre sieve and rests on a 3.35-millimetre sieve. The stone has been broken, and it is not possible to estimate how large it was originally. Photos of the diamond are presented on the company's website.

To date, 302 commercial-sized (over 0.425 millimetre) diamonds have been recovered from the second hole at U2. This hole intersected crater infill at a depth of nine metres until a depth of 85 metres. From 85 metres, kimberlite with five to 10 per cent limestone xenoliths was intersected until the end of the hole at 349.5 metres. A total of 10.3 tons of crater infill was sampled, and 41.6 tons of kimberlite were sampled.

Audit samples from the first hole are now finished, and eight additional diamonds have been recovered. These diamonds have been included in the results. Audit samples have yet to be processed for the second hole.

                      RECOVERED DIAMONDS IN HOLE U2-RC-03
                                                                                        
      Depth                         Sampled                   Diamonds   Sampled  Grade 
From    To  Interval                material                    No.  Ct   weight         
 (m)    (m)   (m)                                                         (kg)    (cpht)

  0     61     61   Overburden and crater infill -- low grade   12 0.218   8,398   2.6 
 61     106    45   Crater-kimberlite transition -- mod. grade  29 0.705   6,201  11.4
 106   166.5  60.5  Kimberlite -- low grade                     46 0.324  11,503   2.8 
166.5  181.5   15   Kimberlite -- moderate grade                16 0.254   2,380  10.7
181.5  211.5   30   Kimberlite -- low grade                     27 0.289   5,128   5.6 
211.5  271.5   60   Kimberlite -- high grade                    92 1.648   9,960  16.5
271.5  301.5   30   Kimberlite -- moderate grade                33 0.279   3,597   7.8  
301.5  331.5   30   Kimberlite -- high grade                    33 0.497   3,271  15.2 
331.5  349.5   18   Kimberlite -- low grade                     14 0.075   1,416   5.3  

The size distribution of the diamonds is very coarse with a high proportion of the diamonds being in the large size categories. This is important for a high average carat value. An attached table contains the size distribution of the diamonds recovered and described to date.

Hole                                    Sieve sizes (through/on)                                      Total    
             0.6 mm         0.85 mm     1.18 mm     1.7 mm      2.36 mm      3.35 mm       4.75 mm              
             0.425 mm       0.6 mm      0.85 mm     1.18 mm     1.7 mm       2.36 mm       3.35 mm              

U2-RC-02        61           81           56          24            4           3            -         229
U2-RC-03        50          121           79          38           12           1            1         302
Total          111          202          135          62           16           4            1         531

Characterization of all the natural diamonds recovered and described to date from the first two holes are as follows: 218 diamonds (41 per cent) are white; 138 (26 per cent) are grey; 124 (23 per cent) are brown; 46 (9 per cent) are yellow; three (1 per cent) are green and two are pink. Significantly, the proportion of white diamonds increases as diamond size increases. Of the 21 largest diamonds (greater than 1.7 millimetres), 13 are white, one is yellow, three are grey and four are brown. By weight, white diamonds comprise 54 per cent of the parcel, and yellow diamonds comprise 8 per cent.

Metalex is most encouraged by the recovery of a white 0.52 carat diamond. The fact that it is broken provides further evidence for the coarse diamond size distribution at U2. In addition, the proportion of white and yellow diamonds continues to be promising.

The technical information and results reported here have been reviewed by Chad Ulansky, PGeol, a qualified person under National Instrument 43-101, who is responsible for the technical content of this release.

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