The Jericho Diamond Project is centered on the land based Jericho kimberlite, which has an open-pit mineable resource of 2.345 million tonnes grading 1.13 carats per tonne. A 10,527 carat parcel of diamonds, extracted from the kimberlite during the underground bulk sample program, was previously valued by the Central Selling Organization ("CSO") in 1996/1997 and by HDM Laboratories Inc. in 1998, resulting in an overall value of approximately US$65 per carat. SRK Consulting completed a prefeasibility study for the Jericho Diamond Project in November 1999 which utilized a diamond valuation of US$65/carat based on these valuations, and recommended a re-valuation of the diamonds for feasibility study purposes.

Tahera retained WWW International Diamond Consultants Limited to provide a comprehensive analysis and valuation of the Jericho diamonds. WWW provides independent valuation and advisory services to diamond mining and exploration companies and governments of diamond producing countries throughout the world.

Applying the average prices recommended by WWW to the estimated carats per geological zone gives an overall modeled valuation for the Jericho diamonds of US$88 per carat, which is approximately 35% higher than the diamond valuation used in Tahera's prefeasibility study. WWW's recommended sensitivity analysis of plus or minus 20%, gives average values of US$106 and US$70 per carat respectively, which is between 63% and 8% higher than the diamond valuation used in Tahera's prefeasibility study.

SRK Consulting, engaged by Tahera to prepare the Jericho Diamond Project feasibility study, and associate M.M. Oosterveld reviewed the valuation work performed by WWW. Mr. Oosterveld, a professional mining engineer, was employed by Anglo American Corporation and De Beers Consolidated Mines Ltd. from 1961 to 1994. During the time he was employed by De Beers, Mr. Oosterveld was in charge of the Mineral Resource Department, and responsible for the assessment of kimberlite deposits throughout the world. Following the review, SRK Consulting recommended the use of an average modeled diamond valuation of US$74 per carat, representing a 14% increase over the diamond valuation used in the prefeasibility study. This figure (US$74/carat) will be used in the base case cash flow analysis of the Jericho Diamond Project.

The impact of utilizing the new modeled diamond valuation numbers in the prefeasibility study financial model is as follows:

The prefeasibility study completed in 1999 defined a 2.3 million tonne open-pit mineable resource and indicated an economic diamond mine with an 8-year life for the Jericho Diamond Project. In preparation of the final feasibility study, SRK Consulting are performing resource optimization studies that will consider both the increased value of the diamonds, and the additional kimberlite outlined below the presently defined open pit bottom as a result of the current drilling program. A revised mine model will be developed for the final feasibility study.

In light of the above developments, the mine life and economics of the Jericho Diamond Project are expected to improve significantly. The final feasibility study is scheduled for completion in the second quarter of 2000.

Permitting

Tahera filed the Jericho Diamond Project Proposal along with an application for a water permit with the Nunavut Water Board (NWB) on November 26, 1999, formally triggering the permitting process pursuant to the Nunavut Land Claims Agreement dated May 25, 1993.

Discussions have been held with all of the regulatory bodies being the Nunavut Impact Review Board (NIRB) in Cambridge Bay, the Department of Indian Affairs and Northern Development (DIAND) in Yellowknife and Ottawa, the NWB in Gjoa Haven, the Department of Sustainable Development (DSD) in Iqaluit and Kugluktuk, and the Department of Fisheries and Oceans (DFO) in Iqaluit and Yellowknife. The timetable proposed to the regulatory authorities contemplates project approval in principle by June 30, 2000.

Discussions have also been held with Nunavut Tunngavik Inc. (NTI) and the Kitikmeot Inuit Association (KIA) with regard to the use of Inuit Owned Surface Rights and a draft Inuit Impact and Benefits Agreement has been submitted to the KIA. There has also been extensive consultation with the communities in Nunavut concerning the impact of the Jericho Diamond Project, employment and training benefits, and socio-economic issues.

The joint technical committee established by Tahera and Echo Bay Mines Ltd. for the implementation of the 1996 Lupin Mine Facilities Use Agreement is progressing to resolve the technical issues associated with the implementation of the agreement.

SRK Consulting and WWW have approved the contents of this release in so far as it relates to them.

For further information, please contact:

Grant Ewing, Vice President Investor Relations & Corporate Development
Tel: (416) 777-1998   Fax: (416) 777-1898   Toll Free: (877) 777-2004
Email: investor@tahera.com   Web site: www.tahera.com

Tahera Corporation (TAH:TSE) is engaged in the exploration for and development of diamond deposits in Canada's Nunavut and Northwest Territories.