TRANS HEX - SIGNING OF DEFINITIVE AGREEMENT

SIGNING OF DEFINITIVE AGREEMENT WITH VERENA MINERALS CORPORATION

TORONTO, CANADA - TRANS HEX INTERNATIONAL LTD. (TSE: THI) IS PLEASED TO
ANNOUNCE THE SIGNING OF AN OPTION AND SHAREHOLDERS' AGREEMENT WITH VERENA
MINERALS CORPORATION ("VERENA") FOR THE EXPLORATION AND DEVELOPMENT OF THE RIO
GRANDE DIAMOND PROJECT, LOCATED ALONG THE RIO GRANDE RIVER IN THE MINAS GERAIS
AND SAO PAULO STATES OF BRAZIL.   UNDER THE AGREEMENT, TRANS HEX INTERNATIONAL
LTD. CAN EARN A 50% INTEREST IN THE PROJECT BY SPENDING US$2 MILLION OVER A
THREE-YEAR PERIOD.  FURTHER EXPENDITURE WOULD BE ON A PRO RATA BASIS, WITH THE
NON-CONTRIBUTING PARTY BEING SUBJECT TO DILUTION.  TRANS HEX INTERNATIONAL LTD.
WILL BE THE OPERATOR OF THE PROJECT AND WILL HAVE THE RIGHT TO MARKET ALL
DIAMONDS ON AN ARMS LENGTH BASIS.

TO DATE 28 REQUIRIMENTOS COVERING 49,000 HECTARES HAVE BEEN ACQUIRED ALONG THE
BANKS OF THE RIO GRANDE RIVER.  RECORDS OF SALES FROM THE GARIMPO BANDIERA
BETWEEN 1985 AND 1997 SUMMARIZED BY VERENA, INDICATE THAT 5,333 STONES WEIGHING
4,407 CARATS (AVERAGE STONE SIZE OF 0.83 CARAT), WITH A VALUE OF US$1,768,000
OR US$401/CARAT, HAVE BEEN PRODUCED FROM CRUDE GARIMPEIRO WORKINGS.  THESE
VALUES WERE CALCULATED BACK TO PRESENT VALUES USING HISTORICAL INFLATION RATES.
 WHERE EXPOSED BY GARIMPO WORKINGS, GRAVEL HORIZONS, UP TO 6 METRES THICK AND
CONTAINING WELL ROUNDED ALLUVIAL BOULDERS, OCCUR IN SHALLOW LYING

PALAEOCHANNELS AND TERRACES, UP TO 2 KILOMETRES FROM THE PRESENT RIVER CHANNEL.
 THE AVERAGE STONE SIZE AND VALUE ARE THE BEST ENCOUNTERED UP TO NOW BY TRANS
HEX INTERNATIONAL IN BRAZIL.

THE PROJECT HAS THE POTENTIAL OF HOSTING LARGE VOLUMES OF GRAVEL WITH GOOD
LATERAL EXTENT AND THICKNESS.  THE IMMEDIATE PROGRAM WILL MAP OUT THE PRESENT
LAND USAGE AND WILL INCLUDE THE ACQUISITION OF SURFACE RIGHTS.  SUBSEQUENTLY, A
BANKHA DRILL PROGRAM WILL TEST THE LATERAL EXTENT AND THICKNESS OF THE
PROSPECTIVE GRAVEL HORIZONS, AND A BULK SAMPLING PROGRAM WILL CONFIRM THE
PRESENCE OF COMMERCIAL DIAMOND GRADES AND VALUES.

TRANS HEX INTERNATIONAL LTD. IS AN INTERNATIONAL DIAMOND EXPLORATION,

DEVELOPMENT AND MINING COMPANY WITH INTERESTS IN EXPLORATION PROJECTS AND JOINT
VENTURES IN NAMIBIA, ANGOLA AND BRAZIL. 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   +2721 92-1105

STEPHEN WOODHEAD - CHIEF FINANCIAL OFFICER  +1 416 363-5440

OR THE COMPANY AT FAX. : +1 416 363-6506 OR E-MAIL : INFO@TRANSHEX.COM