Juina Mining Corporation (GEMM)

[sarals]

Management Report Update August, 28th 2002

Management are pleased to report that Joint Venture Partner Diagem, provided the Joint Venture bank account in Brazil with a further $90,000 USD on August 16. The placement of additional funds will assist in ensuring smooth development of plant commissioning and continuation of the test pit program.

At present, representatives from both the Joint Venture and the Brazilian Mining Authority, the DNPM, are on-site to coordinate the commissioning of the processing plant in line with government requirements. Management are very much encouraged by the interest the DNPM are taking in assisting compliance and view that their involvement at this stage will help to ensure an efficient transition from the present sampling program to larger scale resource assessment.

Clearing of the mine site for processing of gravels has commenced with heavy earth moving equipment hired as of August 23. Management will advise when a date for formal start-up of production is decided upon.

Diamonds recovered from the first test pit reported in the Management Update of May 9 have been cleaned and evaluated by Mr David Cohen of Diagem. Average price per carat was determined to be $40.26. This is not an independent evaluation and given the small sample size involved, no statistically robust inference can made at this time as to the applicability of this figure to future production. Management are encouraged, however by the quality of the stones so far recovered, a sample of which are which are shown in the photograph to the right.



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.

http://www.juinamining.com/mgmt_rep20.html

Sara

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