RNS Number:3849P
Reefton Mining N.L.
04 September 2003


                              REEFTON MINING N.L.
                                (the "Company")

     SKELETON COAST DIAMOND PROJECT - STAGE 2 BULK SAMPLING PROGRESS REPORT


The directors are pleased to advise that the Company has commenced DMS
processing of dry screened gravel concentrate under the direction of Mr Bruce
Michelle following some initial machinery adjustments, with diamond recovery
beginning a week ago.

Diamonds recovered to date are of good size and are of uniform high colour,
clarity and crystal shapes. Full results of the bulk sampling programme will be
released in due course.

A field examination of newly discovered exposures of the most ancient beaches at
25 metres elevation (located 2 kilometres inland from the current shoreline)
shows extensive shallow cover of 1 - 2 metres of transported weathered granite.
Observation pits are to be excavated over the next few weeks to determine sites
for extraction of bulk samples from 5 to 10 metre wide trenches.

Additionally, exploration 40 to 60 kilometres north of the present sampling
sites has located extensive inland fossil gravel beaches that represent
attractive sampling targets. The Company plans to test these targets as part of
the current programme.






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