RNS Number:7090Q
Reefton Mining N.L.
09 October 2003


                              REEFTON MINING N.L.

       SKELETON COAST DIAMOND PROJECT - IMPRESSIVE RESULTS AND ACQUISITION

   *Reefton to acquire an 80% interest in a strategic 90 kilometre length of
    the Skeleton Coast, taking its coverage to 310 kilometres of the coastline.

   *Reefton recovers diamonds from the modern beach. Marine processes are
    still depositing diamonds in the concession area.

   *Bulk sampling returning larger diamonds of up to 2.3 carats.

Acquisition of EPL 2742 - Kunene River, Skeleton Coast Namibia

The company is pleased to announce that it has entered into an agreement to
acquire an 80% interest in EPL 2742 - an important diamond concession covering
90 kilometres of the diamond bearing Skeleton Coast of Namibia. The concession
is up to 8 kilometres wide. To the south, diamonds are located in the modern
beach on the shoreline, and fossil beaches from various geological periods with
the oldest being located up to 2 kilometres inland.

The new concession adjoins the company's existing concessions, to the north,
bringing the total coverage of the diamond bearing beach deposits held by the
company to 310 kilometres.

Further to the north in Angola, a corridor of diamondiferous kimberlite trends
south east into the concession area. This corridor contains kimberlites and
extensive rich alluvial diamond deposits.

Diamond bearing rivers draining this corridor include the Kunene River on the
BORDER="0" of Namibia and one of its ancient outlets - the Angra-Fria River
System. This reaches the coast within the southern portion of this concession,
and is most likely to have also been a transport corridor for diamonds in the
past. The strong north flowing Benguela Current distributes the diamonds
emerging from the river outlets, along the coast. The marine processes then
concentrate the diamonds into beach gravels.

The agreement entered into with Rusina Mining Limited provides Reefton with an
option to acquire an 80% interest in the tenement. Following exercise, and
subsequent to satisfaction of the conditions precedent Reefton will be required
to pay $290,000 and issue 4,000,000 fully paid ordinary shares to Rusina Mining
Limited.

Modern Beach Sampling Result

A bulk sample of 10.8 tonnes of gravel from the modern beach was taken and 5
diamonds recovered. The modern beach is the youngest and located above the surf
zone.

The sample, being wet, was processed directly through the scrubber and Dense
Media Separation Plant (DMS) and returned 1.02 carats equating to a grade of 9.4
carats per hundred tonnes (cpht).

It is significant that diamonds lying on the ocean floor are still being
transported by marine processes. The dynamic system of diamond deposition is
still active along the current shoreline as it has been in the past where it
built stacked fossil beach deposits up to 2 kilometres inland.

Mowe Bay Bulk Sampling

The bulk sampling programme at Mowe Bay is continuing to return high quality
diamonds. As the sampling is progressing larger diamonds are being recovered
with the largest recovered since the Company's last announcement being 2.3
carats. That particular sample is still being processed and sorted for diamonds.






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