AGREEMENT SIGNED WITH LONGREACH GOLD OIL LIMITED

ANGOLAN DIAMOND PROPERTIES

TORONTO, CANADA - TRANS HEX INTERNATIONAL LTD. (TSE: THI) IS PLEASED TO
ANNOUNCE THE SIGNING OF A DEFINITIVE AGREEMENT WITH LONGREACH GOLD OIL LIMITED
(LGO - AUSTRALIAN STOCK EXCHANGE) FOR THE EXPLORATION AND DEVELOPMENT OF THREE
CONCESSION AREAS IN THE LUNDA NORTE PROVINCE OF ANGOLA.

THE AGREEMENT PROVIDES FOR LONGREACH TO ASSIGN TO THI ITS RIGHTS RELATING TO
THREE CONCESSION AREAS KNOWN AS DIAGEMA, KUPOLU AND SOMICOA IN THE LUNDA NORTE
PROVINCE.  THI HAS AGREED TO FUND EXPLORATION AND DEVELOPMENT OF EACH OF THESE
CONCESSIONS UP TO A MAXIMUM OF US$1.5 MILLION PER CONCESSION IN RETURN FOR
WHICH IT WILL ACQUIRE 75% OF LONGREACH'S INTEREST IN THE CONCESSIONS. LONGREACH
HOLDS A 50% INTEREST IN THE CONCESSIONS AND THE BALANCE IS HELD BY ANGOLAN
PARTIES. ANY ADDITIONAL FINANCING REQUIRED WILL BE FUNDED 75% BY THI AND 25% BY
LONGREACH.  SURPLUS CASH, AFTER REPAYMENT OF CAPITAL EXPENDITURE, IS TO BE
SPLIT 50% TO THE ANGOLAN PARTIES, 37.5% TO THI AND 12.5% TO LONGREACH.  IF
LONGREACH ELECTS NOT TO CONTRIBUTE TO THE EXPLORATION AND DEVELOPMENT

EXPENDITURE, ITS ENTITLEMENT DILUTES PROPORTIONATELY DOWN TO 5% OF SURPLUS
CASH.  THE AGREEMENT CONTEMPLATES THAT THI WILL BE THE OPERATOR OF THE PROJECT
AND WILL RETAIN TECHNICAL, ADMINISTRATIVE AND FINANCIAL MANAGEMENT AND CONTROL,
FOR WHICH IT WILL BE ENTITLED TO COMPENSATION FOR AS LONG AS THI HAS FUNDED
MORE THAN 50% OF THE REQUIRED FINANCIAL COMMITMENTS.

THE THREE CONCESSIONS ARE LOCATED ON THE CHICAPA AND LUACHIMO RIVERS IN THE
LUCAPA AREA, ONE OF THE MAJOR DIAMOND PRODUCING AREAS IN ANGOLA, KNOWN FOR ITS
HIGH VALUE GEM DIAMONDS.  AN INDEPENDENT CONSULTANT'S REPORT, PREPARED PRIOR TO
THE PARTIES' INVOLVEMENT IN THE PROJECTS, STATES THAT IN THE MUNGUANHE II
SECTION ON THE DIAGEMA PROPERTY THE INDICATED AND INFERRED ALLUVIAL RESOURCES
IN FIVE MINING BLOCKS TOTALLING 35 HECTARES CONTAINS AN ESTIMATED 148,760
CARATS. THE HISTORICAL AVERAGE SIZE OF DIAMONDS RECOVERED FROM THE MUNGUANHE II
SECTION IS 0.3 CARAT PER STONE WITH OCCASIONAL STONES OF +10 CARATS RECOVERED.
THE PRESENT AVERAGE VALUE OF DIAMONDS FROM THIS SECTION IS ESTIMATED TO BE IN
THE US$200 PER CARAT RANGE. THE MUNGUANHE II SECTION ONLY FORMS A VERY SMALL
PART OF THE 25,000 HECTARE CONCESSION AREA. THE REPORT ALSO STATES THAT
CONSIDERABLE POTENTIAL EXISTS FOR EXTENDING THESE RESOURCES IN THE THREE
CONCESSION AREAS.

THI BELIEVES THAT ANGOLA OFFERS SIGNIFICANT POTENTIAL FOR ALLUVIAL DIAMOND
DEPOSITS. THE COMPANY HAS ESTABLISHED AN OFFICE IN LUANDA, WHERE A GENERAL
MANAGER, WHO WAS APPOINTED IN JANUARY, IS CURRENTLY REGISTERING THI AS A
FOREIGN INVESTOR.  THE COMPANY IS ALSO INVESTIGATING A NUMBER OF FURTHER
OPPORTUNITIES IN THE LUNDA NORTE AND LUNDA SUL PROVINCES.

TRANS HEX INTERNATIONAL LTD. IS AN INTERNATIONAL DIAMOND EXPLORATION,

DEVELOPMENT AND MINING COMPANY WITH INTERESTS IN EXPLORATION PROJECTS AND JOINT
VENTURES IN NAMIBIA, ANGOLA, BRAZIL AND THE CENTRAL AFRICAN REPUBLIC. THE
COMPANY IS A SUBSIDIARY OF TRANS HEX GROUP LIMITED, THE SECOND LARGEST DIAMOND
PRODUCER IN SOUTH AFRICA, WITH WELL ESTABLISHED INDEPENDENT DIAMOND MARKETING
FACILITIES.
FOR FURTHER INFORMATION PLEASE CONTACT :

D.M. (NIEL) HOOGENHOUT, PRESIDENT AND CHIEF EXECUTIVE OFFICER +1.416.363-5440
PETER W.A. WALKER, VICE PRESIDENT, EXPLORATION +27.21.92-1105

STEPHEN WOODHEAD, CHIEF FINANCIAL OFFICER  +1.416.363-5440