Juina Mining Corporation (GEMM)

[sarals]

Management Report Update May 8th 2001

The period subsequent to the last management report has been a busy and very rewarding time for JMC. This latest report follows directly from the return of Dr. Mousseau Tremblay from his latest site visit in his capacity as representative of the Joint Venture Management Committee and the completion of the documentation of his findings.

Dr. Tremblay spent the period between March 28th through April 13th in Brazil, principally to report on the development of the site and to facilitate the legal requirements of government filings related to the property.

Plant Rehabilitation
Management is pleased to report that with the exception of some electrical wiring, water piping and final connections between components, the mill is ready to process uncemented gravels. All individual components are working efficiently within their expected parameters. The laser Sortex, for final separation of diamonds from the heavy mineral concentrates, has been tested using historically processed gravels, from which diamonds were recovered. A separate attrition mill component has been located and will be added to expand the plant capability to process cemented gravels once revenue from diamond production is forthcoming. The completed plant is expected to become a model for the Juina area and its efficient completion is a testament to the dedication of our Plant Manager, Ron Turner.

Ron has also overseen the completion of the strong room, which completes the security system aimed at ensuring safe storage of processed diamonds before leaving the property.

A well-equipped laboratory for the separation of mineral samples from the prospecting program has been completed. The laboratory includes heavy mineral separation facilities, microscopy equipment and all necessary computational support.

Mineral Sampling Program
At the time of Dr. Tremblay's departure from the site, lines had been cut on over half of the property and samples had been collected from approximately 30% of the total number of sites. The survey, when complete, will cover the entire area of the Joint Venture's claim and in addition to providing immediate information allowing the accurate location of diamond source anomalies will represent a comprehensive database of mineral separates for future and more detailed sampling. The area so far completed has focused around the location of the most promising geomagnetic anomalies according to surveys completed on behalf of JMC.

Dr. Mark Hutchison, using representative samples from close to the primary anomaly, is optimizing the details of mineral separation and prospecting procedures. Heavy mineral and magnetic separation of different fractions have allowed a recipe for the most efficient removal of the key kimberlite indicator minerals; ilmenite, garnet, phlogopite, zircon and Cr-spinel to be completed. Preliminary findings of mineral compositions have yielded promising data in terms of diamond prospectivity.

Governmental Filings
The Joint Venture is still in the process of finalizing the negotiations with the relevant Brazilian State and federal government authorities. At this stage, and now that the plant is essentially finished, the principal impediment to processing of gravel and extraction of diamonds is the completion of filings with the mining authority IBAMA. Management wishes it to be known that these procedures are in hand and are being conveyed with as much speed as possible.

Juina Mining Corporation Re-organization for Return to Bulletin Board
Management has acquired the services of Thomas J. Kenan, Esq., of the law firm of Fuller, Tubb, Pomeroy & Stokes as corporate council. Mr. Kenan will be instrumental in assisting management in the proper corporate filings necessary in its anticipated return to Bulletin Board trading status. SB-2 and 10-SB forms have been completed and submitted to council for review and subsequent filing. Management is taking an aggressive approach to all past, present and future filings necessary to maintain full compliance and the upgrading of trading status.

The complete address and communication numbers with corporate council are as follows:

Thomas J. Kenan, Esq.
Fuller, Tubb, Pomeroy & Stokes
201 Robert S. Kerr Ave., Suite 1000
Oklahoma City, Oklahoma 73102
Tel: [phone]
Fax: [phone]
Email: [e-mail]



Final Notes
The next Joint Venture Management visit to the site is planned to be conducted by JMC's Chief Geologist, Dr. Mark Hutchison. He is expected to oversee the initial stage of mineral separation from the sampling program and to supervise focusing on the most likely diamondiferous areas. It is hoped that if filings are completed, his visit will also coincide with the first processing of diamondiferous gravels which will enable timely observations of diamond grade to be announced.

Management would like to extend its thanks to shareholders for their patience during this developmental period and are confident in a bright future.

Forward-looking statements in this report are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks and uncertainties and actual results could differ from those discussed. This material is informational only and is not an offer or solicitation to buy or sell securities.

(see their website for original report)