TRANSHEX - PROGRESS REPORT ON THE BARRA GRANDE AND NORTHBANK PROJECTS

JULY 7, 1999

PROGRESS REPORT ON THE BARRA GRANDE AND NORTHBANK PROJECTS

TORONTO, CANADA - TRANS HEX INTERNATIONAL LTD. (TSE: THI) ANNOUNCED TODAY THE
RESULTS OF ITS INITIAL RECONNAISSANCE DRILLING PROGRAM AT THE BARRA GRANDE
PROJECT IN BRAZIL, AND PROVIDED AN UPDATE REGARDING THE DELAY AT ITS NORTHBANK
PROJECT, IN NAMIBIA.

THE FIRST 1,000 METRES OF REVERSE CIRCULATION DRILLING HAS BEEN COMPLETED AT
THE BARRA GRANDE PROJECT, IN THE MINAS GERAIS STATE OF BRAZIL, WHERE THE
COMPANY IS EARNING A 50% INTEREST IN A JOINT VENTURE WITH VERENA MINERALS
CORPORATION, WITH THE FOLLOWING RESULTS:
HOLES DRILLED:          23 (BG-1 TO BG-23)

SPACING:                1 KILOMETRE (DRILLED ALONG THE PUBLIC ROAD FORMING THE
SPINE OF THE PENINSULA)
AVERAGE DEPTH:          49.25 METRES

BASAL GRAVEL WAS INTERSECTED IN 9 OF THE 23 HOLES. OVER A DISTANCE OF 5
KILOMETRES, FROM BG-15 TO BG-20, THE BASAL GRAVEL UNIT VARIES FROM 5 TO 13
METRES THICK, AVERAGING 9 METRES THICK, BELOW A SANDY OVERBURDEN THAT RANGES
FROM 16 TO 25 METRES THICK. THE RECONNAISSANCE DRILLING PROGRAM WILL CONTINUE
TO OUTLINE GRAVEL UNITS BELOW THE BARRA GRANDE PENINSULA AND DOWN-DIP OF THE
ARTISANAL DIAMOND DIGGINGS AT BANDEIRA AND BAGAGEM. THE CURRENT PROGRAM IS NOT
EXPECTED TO PROVIDE ANY INFORMATION REGARDING GRADE OR VALUE OF DIAMONDS, BUT
IS INTENDED TO DEFINE A SIGNIFICANT RESOURCE FOR FOLLOW-UP PITTING AND BULK
SAMPLING. NEGOTIATIONS WITH LANDOWNERS IN THE REGION ARE ADVANCED AND
PROGRESSING WELL.

ON FEBRUARY 1, 1999 THE COMPANY DISCLOSED THAT THE MINERAL ANCILLARY RIGHTS
COMMISSION OF THE NAMIBIAN MINISTRY OF MINES AND ENERGY ("MARC") HAD RELEASED
ITS JUDGEMENT IN NORTHBANK'S APPLICATION FOR ARBITRATION IN RESPECT OF DISPUTED
RIGHTS OF ACCESS TO THE AUSSENKEHR FARM. NORTHBANK WAS GRANTED THE RIGHT TO
ENTER UPON THE AUSSENKEHR FARM IN ORDER TO CONTINUE EXPLORATION AND TO ERECT
SUCH ANCILLARY WORKS NECESSARY FOR THESE OPERATIONS. THE LEVEL OF COMPENSATION
PAYABLE TO THE FARM OWNER WAS DETERMINED AT N$2,500 PER MONTH ($600 PER MONTH).
IN FEBRUARY, THE COMPANY WAS ADVISED THAT THE FARM OWNER HAD APPEALED THE
RULING OF THE MARC. THIS APPEAL IS NOW SCHEDULED TO BE HEARD IN OCTOBER 1999.
A WRIT OF EXECUTION WAS APPLIED FOR, THAT WOULD ALLOW NORTHBANK TO COMMENCE
WITH MOBILISATION OF THE EARTHMOVING CONTRACTOR AND CONSTRUCTION OF THE 100
TONNE-PER-HOUR PROCESSING PLANT. ALTHOUGH IT WAS ANTICIPATED THAT THE

EXCAVATION OF THE TEST PITS COULD BEGIN IN MID 1999, THE MARC HAS SINCE RULED
THAT IT DOES NOT HAVE THE JURISDICTION TO DEAL WITH THE COMPANY'S APPLICATION
FOR A WRIT OF EXECUTION. THIS WILL UNFORTUNATELY RESULT IN A FURTHER FOUR MONTH
DELAY IN THE DEVELOPMENT OF THIS VERY PROSPECTIVE PROJECT, UNTIL THE HEARING OF
THE APPEAL ON OCTOBER 25, 1999. EXPLORATION IN NAMIBIA WILL THEREFORE BE
CONCENTRATED IN THE INTERIM ON THE DEEPER WATER OF THE SKELETON COAST PROJECT,
AND SPECIFICALLY ON EVALUATING THE SWALLOW BREAKERS FEATURE BETWEEN TERRACE BAY
AND THE MOUTH OF THE UNIAB RIVER. THE APPOINTMENT OF A CONTRACTOR TO CARRY OUT
THIS WORK IS IMMINENT.

THE COMPANY HAS SIGNED AN AGREEMENT WITH RAINBOW RESOURCES FOR THE EVALUATION
OF THEIR PROPERTIES IN BOTSWANA. THE TARGET IS A 1 KILOMETRE DIAMETER CIRCULAR
MAGNETIC ANOMALY ON THE MARGIN OF THE KAAPVAAL CRATON, SOME 140 KILOMETRES
NORTH OF ORAPA. POTENTIALLY A KIMBERLITE OF 80 HECTARE EXTENT. THE JOINT
VENTURE AGREEMENT IS CURRENTLY WITH THE BOTSWANA GOVERNMENT FOR APPROVAL,
WHEREUPON A SINGLE PERCUSSION DRILLHOLE TO INVESTIGATE THIS FIRST ORDER
MAGNETIC ANOMALY IS PLANNED. DEPENDING UPON THE RESULTS FROM THIS DRILLHOLE, A
FURTHER WORK PROGRAM WILL BE CONSIDERED.

TRANS HEX INTERNATIONAL LTD. IS AN INTERNATIONAL DIAMOND EXPLORATION COMPANY
WITH INTERESTS IN EXPLORATION PROJECTS AND JOINT VENTURES IN NAMIBIA, BRAZIL,
BOTSWANA AND ZIMBABWE. THE PRINCIPAL SHAREHOLDER OF THE COMPANY IS TRANS HEX
GROUP LIMITED, THE SECOND LARGEST PRODUCER OF HIGH QUALITY GEM DIAMONDS IN
SOUTH AFRICA (WITH TURNOVER OF US$48 MILLION IN FISCAL 1999), 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