ENGLEWOOD, COLORADO--Seahawk Minerals Ltd. (CDNX - "SKM") is pleased to provide an update of the recent progress made at its 58.5%-owned Piteiras Emerald Project in Minas Gerais, Brazil. The 21 hole (4,000 metre) Phase II core drilling program is now scheduled to be completed in early March with 3,500 metres in 18 drill holes completed to date. The emerald-bearing zone, identified through the drilling campaign and characterized by a phlogopite schist horizon, is geologically comparable to other emerald occurrences around the world and has been referred to as the "Blackwall Zone". The Blackwall Zone at Piteiras has been identified in 16 of 32 holes spaced on predominantly 50-metre centers. The Blackwall Zone dimensions currently stand at 400 metres by 200 metres with an average thickness of 2.5 metres. Ten of the sixteen holes within this zone contain emerald crystals and crystal fragments within the core demonstrating a remarkable degree of continuity. The Blackwall Zone at Piteiras remains open to the southeast, southwest and northwest.

The following table identifies the drill results from both Phase I and II, and the intercepts being used in the calculation of the emerald-bearing Blackwall Zone:

The carat count made for these Blackwall Zone intercepts was accomplished by optically sorting and segregating emerald crystals and crystal fragments from the core in 10 centimetre increments over a series of crushing steps. Representative emerald crystals and crystal fragments from Piteiras have been verified through the use of X-ray diffraction by a certified geological engineer in Ouro Preto, Minas Gerais, Brazil.

At the end of 1999, the Company commissioned an independent assessment of the project and its October 1999-dated in-house scoping study. Dr. Jan Kanis, a consulting geologist/gemmologist based in Germany with over 40 years of experience in the emerald and coloured gemstone mining industry, reviewed the project's database and completed an extensive site visit and report. His report deems the approach taken by the Company to be sound and recommends that the Company complete the current drilling program and proceed to commence development activities at the project.

Emerald deposits can only be categorized as proven reserves once actual mining and processing have commenced given the nature of in-situ emerald mineralization. Accordingly, and given that the estimated project capital is comparable in cost to an underground bulk sampling and trial processing program, the Company plans to install the suitable mine access and processing facilities to sustain a designed level of production.

The following project description and parameters have been compiled by the Company and are primarily based on comparisons to other gemstone operations in Brazil and elsewhere and should serve as a general framework in which to view the project's potential. These parameters are not supported by a feasibility study nor have they been independently verified. In addition, any past dissemination of information of this nature was also not supported by a feasibility study:

• 100 tonnes/day (30,000 tonnes/year) underground mine and processing facility.
• The Piteiras Project's capital cost is not expected to exceed US$5.0 million.
• Operating costs of between US$40-50 per tonne of emerald-bearing material.
• A 70% plant recovery rate of emerald
• Of the estimated total emerald production, up to 25% may be characterized as gem quality (facettable), the remainder being classified as "Cabochon" quality.
• A price range of US$100-150 per gram and US$ 2.00-3.00 per gram for gem quality and Cabochon, respectively. None of the emeralds recovered from the Piteiras property have been independently valued to date.

As previously announced, ownership of the project was restructured in January 2000 to provide the Company with a 58.5% vested equity interest in Piteiras Mineracao Ltda., the company that owns 100% of both the mineral and surface rights at Piteiras. The Company also holds an option to acquire a further 16.5% interest in the project from the former property owner for a cash payment of US$675,000 prior to July 2000. Under this restructuring, the 50% net profits royalty interest held by the former property owner was eliminated.

Currently, representatives from a number of financial institutions have visited the property and are completing the project review process. This exercise is expected to produce several project financing alternatives for the Company's consideration in the near future.

Mr. Christopher Taylor, President of Seahawk, stated today that "the continued drilling success, in conjunction with the support of Dr. Kanis and the various financial institutions, has generated a significant level of financial and technical interest in this important new deposit."

For further information, please contact:

Seahawk Minerals Ltd.
Louis A. Lepry, Jr.
Telephone: (303) 770-8505
Facsimile: (303) 770-9344
seablack@msn.com