April 2, 1998
Trading Symbol: CYR (ASE)

ALBERTA DIAMONDS
"MUSTANG" PROPERTY UPDATE
DRILL PROGRAM TEMPORARILY SUSPENDED

Columbia Yukon Resources Ltd. (the "Company"), as operator, along with it's joint venture partner International Butec, has been advised by the "Mustang" project manager, M.P.H. Consulting Ltd., that the Alberta Public Lands office has recommended that drill operations be temporarily suspended due to abnormally warm weather affecting land conditions in the area. The "Mustang" drill program will continue as soon as more favourable drilling conditions prevail, estimated to be 2 to 4 weeks.

M.P.H. has advised that the first drill target, PR24-1 in the northeast sector of the property was completed and the following geology was encountered. Hole PR24-1 was completed at a depth of 79.2 metres in upper cretaceous marine shale of the Shaftsbury formation. The overburden which is 67.1 metres consists of glaciofluvial/glaciolacustrine deposits of clay, silt, sand and gravel. Sand and gravelly material between 30 and 40 metres contains abundant magnetite and has magnetic susceptibilities approximately 10X that of the adjacent overburden units and approximately 20X that of the bedrock. The PR24 target has been satisfactorily explained as being caused by magnetic concentrations in overburden. The target PR25 located about 1km to the southwest has the same signature and has been discounted as a kimberlite target.

The Company will continue drilling, as soon as possible, on the two high priority cluster magnetic anomalies, one located in the central section of the property and the other in the south west region.

Additionally, the Company has been advised that Waterfront Capital Corporation, an Alberta Stock Exchange publicly traded company, has exercised 700,000 purchase warrants at .15, contributing $105,000 to the treasury.



ON BEHALF OF THE BOARD OF DIRECTORS


MICHAEL S. GUSTAVSON, DIRECTOR

THE ALBERTA STOCK EXCHANGE NOR ANY REGULATORY BODY HAS REVIEWED THIS NEWS RELEASE AND THEREFORE DO NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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Trading Symbol
CYR-ASE