CUANGO AND CAMUTUE

Commencing legal proceedings in the United States against Empresa Nacional de Diamantes de Angola, the state-owned diamond company in Angola.

The company has access to diamond licences, known as the Cuango Floodplain exploration licence and the Camutue mining licence. These two adjoining areas cover the northern half of the Cuango River Basin from just south of Luremo northward to the border with the Democratic Republic of Congo.

The Angolan Council of Ministers has ratified the Heads of Agreement for two diamond licences in Angola. The agreement between America Mineral Fields' 100% owned subsidiary IDAS Resources NV, Endiama E.P. (the Angolan State diamond company) and Twins Ltd, a company representing private Angolan investors, covers exploration rights on the Cuango Floodplain exploration lease and the Camutue mining lease located the northern half of the Cuango River Basin from just south of Luremo northward to the border with the Democratic Republic of Congo. The overall area of the two licenses covers some 2,936 km˛ and the Camutue lease is a former alluvial diamond producer. America Mineral Fields believes the recent improvements in the security situation in Angola as a whole, and in the lower Cuango River valley in particular, have dramatically improved and exploration could begin before the end of the third quarter of calendar 2002.