BDI Mining Corp.

COMPANY DATA | INTRODUCTION | PROJECTS IN HAND | MANAGEMENT
NEWS UPDATE | CHINESE

COMPANY DATA

INTRODUCTION

BDI Mining Corp. is a junior mining company listed in TSX Venture Exchange in Toronto and AIM in London, England. BDI Mining Corp. is focused on increasing shareholder value through the identification and development of high value gem diamonds and gold deposits in the Pacific Rim. BDI Mining Corp. now in production at the Cempaka alluvial diamond project in SE Kalimantan Indonesia and is exploring for the primary source of the Cempaka diamonds in the nearby Bobaris Block property.

In Papua New Guinea, the Company is undertaking an initial 2500 metres diamond drilling program to significantly upgrade the existing 380,000 oz resource on its 100% owned Woodlark Island Gold Project.

PROJECTS IN HAND

(1) Cempaka Diamond Project, SE Kalimantan Indonesia

The property contains two significant primary diamond indicator anomalies coincident with a geological structure with the potential to host a possible primary source of BDI Mining Corp.'s Cempaka alluvial diamond deposit, located 45 km to the southwest. BDI Mining Corp. is earning a 70% interest in the property by spending US$500,000 on exploration.

The property lies between the two major diamondiferous drainage systems identified by the Dutch in the 1920s and the 1930s - the Riam Kanan and Riam Kiwa river - which have ultimately been responsible for the diamondiferous fanglomerates at the base of the Meratus Range which were subsequently eroded into the paleochannels containing BDI's Cempaka alluvial diamond deposit.

The property covers an area of approximately 15,000 ha which has been extensively drainage sampled and examined for primary diamond indicators such as chrome, pyrope, chrome diopside and uvarovite. Two significant diamond indicator anomalies have been obtained and will now be followed up by BDI.

Commissioning of the plant has now commenced at the Cempaka Diamond Project with full production scheduled at the end of October 2004. Phase 1 of the project will mine projected 85,000 carats over the first 18 months in Darau Seran by dry mining utilizing a scrubber/trommel and twin 14' rotary pans. Phase 2 of the project will mine the large Cempaka Paleochannel where in excess of 660,000 carats are indicated.

Numerous other prospects exist to enhance production and the Company will aggressively explore them over the coming year.

BDI Mining Corp. plans an initial program of increasing density of stream sediment sampling within the anomalous zones. Concentrates derived from this will be mineralogically examined and grains selected for microprobing and detailed chemistry. Detailed geological mapping will be conducted simultaneously with stream sediment sampling. Any volcanic sandstones encountered will be sampled and their heavy mineral component analysed. The emphasis of this initial work will be rapid identification of drill targets. Follow up programs will consist of ground magnetics and drilling. The initial phase is expected to cost approximately US$150,000 and take approximately six months to complete.

(2) Woodlark Island Gold Project, Papua New Guinea

BDI Mining Corp. holds a 100% interest in the 350 sq.km Woodlark Island Gold Project, 300 km east of the Papua New Guinea mainland and 150 km north of Placer Dome's Misima Island gold mine.

The Woodlark Island property contains numerous epithermal gold targets in a Tertiary Age island arc volcanic complex which BDI considers has the potential to host a large economic gold deposit. The gold targets are located within a 12 km wide horst block and are inferred to be related to buried porphyry centres localized on the horst bounding structures.

Shallow drilling to date of two of the targets, Busai and Kulumadau, has delineated +370,000 ounces of gold in open pittable mineralization.

In the central zone of the Kulumadau trend there was 100 m of untested strike along structure from RC drill hole ALK21, which intersected 52 m @ 4.51 g/t Au to the end of the hole at 150 m downhole depth. In the northern zone, potential exists for additional mineralization in a fault offset area where drill hole ALK02 intersected 41 m grading 14.10 g/t Au to 77 m downhole depth.

BDI's initial 2,500 metres drilling program commenced in March 2004 and was aimed at increasing the Kulumadau resource where mineralization is open at depth and along strike and test a 2 km northeast trend where there is a strong possibility of repetitions of Kulumadau-style mineralization at the intersection of crossfaults. Results to date indicate a potential significant resource upgrade.

Similar high-grade open pittable gold mineralization is possible in numerous untested zones across the project area. In addition, there is the possibility of breccia pipestyle mineralization in an area of crossfaulting north of the currently defined resource where diamond drill hole 91KLD034 drilled by Highlands Gold intersected 52 m grading 11.4 g/t Au, including 18 m grading 25.2 g/t Au.

Diamond drilling is continuing. BDI has initiated in October 2004 an induced polarization (IP) survey to delineate further gold mineralization beneath shallow limestone cover over the Kulumadau Trend as well as other regional targets. The Company will mobilize additional drilling rigs to test the IP targets.

MANAGEMENT

BDI Mining Corp. has a well management team with experience in different areas.

Senior Officers and Management

· Lee K. Spencer, MSc., MAusIMM, President & CEO
· John C. (Chuck) Forrest, CA, Chief Financial Officer
· James L. Harris, Company Secretary

Directors

· Paul R. Loudon (Non-executive Chairman)
· Lee K. Spencer
· John C. Forrest
· David Lenigas
· Raymond D. Perkes

NEWS UPDATE

On November 17, 2004, BDI Mining Corp. announced additional results from diamond drilling underway at the Company's 100% owned Woodlark Island Gold Project, 300 km east of the Papua New Guinea mainland.

Highlights

· Holes BKD-7 and BKD-8 have confirmed a new gold zone within crackle breccias in the hanging wall of the major northeast structure hosting the Kulumadau Main Breccia Zone. Significant intercepts include 6 metres @ 24.7 g/t Au, 4 metres @ 8.38 g/t Au and 3 metres @ 8.4 g/t Au. This new zone is open along strike to the north and will be subject to further definition drilling.

· This new gold zone is located about half the 300 metres distance between the resources delineated by previous operators at Kulumadau and Kulumadau North, and has the potential to be amalgamated into a large open pit designed to access bulk mineable gold mineralization at surface and deeper mineralization intersected by BDI in the current drilling programme.

· To date, 2,179 metres of diamond drilling have been completed.

Commenting on the results, BDI Mining's President & CEO, Mr. Lee Spencer, said: "This new zone is a blind, high-grade discovery at shallow depth below limestone cover and highlights the substantial additional potential at Woodlark over and above the +15 gold prospects already identified."

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