Juina Mining Corporation (GEMM)

[sarals]

Management Report Update July, 8th 2002
A further 112 diamonds, including a 4.2 carat stone have been recovered from the latest bulk sampling pit dug on JMC's 1000 Property. Approximately 125 cubic metres of sample were removed from a volume directly overlying the site of sonic drilling reported in the Management Report of June 21. This drill core constituted the first direct evidence of kimberlitic material on the 1000 property recovered by the joint Venture.

Management are pleased to report that digging recovered approximately 25 cubic metres of partially lateritised gravel which was found to overly kimberlitic rock of the same character as discovered in recent drilling. Approximately 100 cubic metres of kimberlitic rock was recovered and the body was found to be harder and less weathered with depth; consistent with an in-situ ore body. Gravel and kimberlitic layers were processed separately to assist in the accurate assessment of the diamond potential of the layers.

Thirty-five (35) stones weighing a total of 9.10 carats and including one stone of 4.20 carats were recovered from the gravel layer using a rapid and basic separation method. A further 77 stones were recovered from the kimberlitic material and weighing a total of 16.00 carats. Diamonds were recovered from heavy mineral concentrates containing a very high percentage of the mineral ilmenite. Due also to the partially lateritised nature of the gravels, it is intended that the above samples are reprocessed to establish a more accurate grade.

The above results show that the kimberlitic material discovered is diamond-bearing and thus a source of diamonds other than the historically worked alluvial deposits is present on the property.

Further drilling and bulk sampling work will be carried out with the intention of delineating the surface extent of the kimberlitic body and assessing its grade.

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

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