TRANSHEX - GENERAL PROPERTY UPDATE

TRANS HEX GROUP LIMITED
NOVEMBER 9, 1998
GENERAL PROPERTY UPDATE

TORONTO, CANADA - TRANS HEX INTERNATIONAL LTD. (TSE; THI) - THE ARBITRATION
HEARING TO DETERMINE THE SURFACE COMPENSATION PAYABLE TO THE FARM OWNER AT THE
NORTHBANK PROJECT, NAMIBIA HAS BEEN POSTPONED TO THE WEEK OF NOVEMBER 16, 1998.
FOLLOWING THIS FURTHER DELAY, THE COMPANY HAS MADE ARRANGEMENTS TO TRANSFER THE
100 TONNE PER HOUR DMS SAMPLING PLANT TO ITS PARENT COMPANY, WHO HAS UNDERTAKEN
TO REPLACE THE PLANT ON DEMAND. CONSTRUCTION OF THE NEW PLANT IS PROPOSED TO
COMMENCE SIMULTANEOUSLY WITH THE MOBILIZATION TO THE SITE OF THE EARTH MOVING
CONTRACTOR, ANTICIPATED TO BE IN JANUARY 1999. THE PROJECT HAS OUTSTANDING
TECHNICAL MERITS, WITH 30 MILLION CUBIC METERS OF DRILL INDICATED GRAVEL
DEFINED WITHIN THE 450 HECTARE TERRACE DEPOSIT. THE COMPANY HAS REDUCED THE
PERSONNEL ON SITE, THE MAJORITY OF WHICH HAVE BEEN REDEPLOYED TO THE SKELETON
COAST PROJECT. AN INTENSIVE PROGRAM TO EXPLORE THE GULLIES AND EMBAYMENTS
WITHIN THE SURF ZONE, TO GAUGE THE EXTENT AND GRADE OF GRAVELS AND QUALITY OF
DIAMONDS, IS PLANNED FOR THIS PROJECT BETWEEN NOVEMBER 1998 AND FEBRUARY 1999.
DURING THE 1950'S AND 1960'S SEVERAL COMPANIES WORKED THE DIAMONDIFEROUS BEACH
DEPOSITS ALONG THIS COASTAL AREA WITH PROCESSING PLANTS AT TOSCANINI AND AT
TERRACE BAY.

IN THE LIGHT OF THE WEAK INTERNATIONAL DEMAND FOR DIAMONDS CURRENTLY BEING
EXPERIENCED AND THE EXTREMELY HIGH POLITICAL AND SECURITY RISK IN THE AREA,
TRANS HEX INTERNATIONAL HAS RE-EVALUATED ITS EXPOSURE IN ANGOLA. THE DIAGEMA
PROJECT REQUIRES THE COMMITMENT OF SIGNIFICANT RESOURCES TO A PROJECT WITH AN
INCREASING COST PROFILE, IF WHICH THE COMPANY HAS A RELATIVELY LOW EQUITY
INTEREST. THE COMPANY IS CONVINCED OF THE EXCELLENT DIAMOND POTENTIAL OF ANGOLA
AND A WATCHING BRIEF WILL BE MAINTAINED PENDING AN IMPROVEMENT IN THE RISK
PROFILE OF THE AREA. THE LUANDA OFFICE WILL BE CLOSED AND NOTICE HAS BEEN GIVEN
TO OUR JOINT VENTURE PARTNERS.

THE COMPANY HAS APPROXIMATELY $3.8 MILLION CASH AVAILABLE, WHICH IT BELIEVES IS
SUFFICIENT TO FUND ITS BRAZILIAN JOINT VENTURE AND CORPORATE OVERHEADS FOR AT
LEAST A FURTHER TWO YEARS. TRANS HEX GROUP LIMITED, THE COMPANY'S PARENT
COMPANY, HAS COMMITTED FUNDING FOR THE NORTHBANK PROJECT THROUGH TO MARCH 31,
2000 ON THE BASIS OF AN INTEREST FREE CREDIT FACILITY.

TRANS HEX INTERNATIONAL LTD. IS AN INTERNATIONAL DIAMOND EXPLORATION,

DEVELOPMENT AND MINING COMPANY WITH INTERESTS IN EXPLORATION PROJECTS AND JOINT
VENTURES IN NAMIBIA AND BRAZIL. THE COMPANY'S PARENT COMPANY, TRANS HEX GROUP
LIMITED, IS 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

FOR MORE INFORMATION SEE OUR WEB SITE AT WWW.TRANSHEX.COM OR CONTACT US AT
INFO@TRANSHEX.COFFI