News Releases

December 21, 2001
Independent Committee Update
TORONTO, CANADA -- TRANS HEX INTERNATIONAL LTD. (CDNX: THI) The Independent Committee of the Board of Directors of Trans Hex International Ltd. (CDNX: THI) is pleased to provide an update on the Committee's deliberations following Trans Hex Group Limited's announcement of its intention to seek a court approved winding-up of THI.

The Independent Committee has received the report of its independent consultant regarding the evaluation of certain of THI's exploration interests in Southern Africa. The properties evaluated by the consultant are the Ngami Kimberlite Project located in Botswana, the Skeleton Coast Marine Diamond property located in Namibia, the Northbank Alluvial Diamond Project located in Namibia and the Limpopo (Sengwe) Kimberlite Project located in Zimbabwe. The consultant applied the Appraised Value Method of valuation to each of the four properties as the primary valuation approach to derive a valuation estimate, but was able to use Comparable Transactions Analyses and the Kilburn Geoscience Method to the Ngami Kimberlite Project in Botswana. Based on these approaches, the estimated value of THI's interests in the properties is in the range of C$ 1,949,000 -- C$ 2,045,000. The estimated value attributable to the Northbank property of C$ 1,200,000 assumes that current legal proceedings involving the property result in a decision that is ultimately favourable to THI. The consultant determined that a negative decision would eliminate all of the value attributable to the Northbank Project.

The Independent Committee has received expressions of interest from a number of parties for an alternative to the proposed winding-up. To date, the Independent Committee has received proposals from three parties and has entered into confidentiality agreements and exchanged information with these parties and has been conducting negotiations with them with a view to providing THG with one or more proposals as an alternative to the proposed winding-up. The Independent Committee cautions that, in light of THG's position as a 73% shareholder of THI and THI's largest creditor, any alternative proposal would require the prior approval of THG.

The Independent Committee also announces that, consistent with THG's obligations pursuant to project loan agreements in respect of the Barra Grande Project in Brazil and the Northbank Project in Namibia, THG will fund THI's obligations to the extent of Rais 760,000 with respect to the reclamation costs associated with the Barra Grande Project in Brazil and THG has confirmed the unfunded portion of the 2001/2002 budget in the amount of Namibian $281,000 for the Northbank Project in Namibia remains in place.

For further information please contact:

Hugh Snyder
Chairman of the Independent Committee
Tel: (416) 350-2356
Fax: (416) 350-3510
Email: hughsnyder@attglobal.net
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