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(TSX: TAH)

TORONTO, June 8 /CNW/ - Tahera Corporation (the Company) announces that
it has entered into an agreement with De Beers Canada Exploration Inc. with
respect to exploration and potential development of a property adjacent to the
Company's Jericho Diamond Project in Nunavut. Tahera will earn a 50% interest
in the property and any production therefrom through expenditures of
C$11.0 million by 2008. The property encompasses approximately 36,000 hectares
and includes four known diamondiferous kimberlites, the most prospective is
located 14 kilometres west of the proposed Jericho processing plant.
Each party may increase its interest in individual development projects
depending on the project value. For projects with a defined value of
C$750 million or less, Tahera will be operator and may increase its interest
to 75% by making certain payments to De Beers. For large scale projects
involving the construction of a new processing plant De Beers will be the
operator and may increase its interest to 70% by making certain payments to
Tahera. The agreement provides for one or more projects to be developed
individually. The operator in each case will market the production.
"This agreement has great benefits for Tahera by potentially extending
the economic life of the proposed Jericho plant while potentially allowing for
the De Beers kimberlites, which may not otherwise sustain a stand alone
project, to be mined", said R Peter Gillin, Chairman and CEO of Tahera.
"Tahera also obtains a substantial interest in any large scale projects which
would be beyond our resources to develop independently," he continued. "This
agreement is the first of its kind for De Beers and we are very pleased to be
their partner." Mr. Gillin said.
"The agreement foresees several possible development outcomes and caters
for these eventualities in terms of ownership, operatorship, economic returns
and marketing. It tailors risks and rewards to outcomes and both companies
stand to benefit in all scenarios," said Richard Molyneux, President and CEO
of De Beers Canada. "We consider Tahera to be an excellent partner, not only
because of the synergies arising from the adjacent properties, but because
they have the necessary management skills to achieve full value for all
stakeholders," he added.
This exploration and development agreement has no impact on Tahera's
current development plan with respect to its wholly owned Jericho Diamond
Project, or on Tahera's exploration activities on its wholly owned exploration
and development properties. As previously announced (see press release dated
June 7, 2004), Tahera has received federal approval of the Jericho Project,
paving the way for development of Nunavut's first diamond mine. Tahera plans
to commence construction of the Jericho Project in early 2005, subject to
finalizing the required permits and authorizations for the Project, including
the water permit and land leases, and completing project financing.

The Property

The property covered by the agreement with De Beers is located north west
of Tahera's Jericho claims and covers an area of approximately 36,000
hectares.
Four diamondiferous kimberlites have been discovered on the claims to
date, and both parties consider the property to be prospective for further
discovery. Most of the kimberlites have been assessed by preliminary
delineation drilling and microdiamond analysis. The Muskox pipe, situated 14
kilometres west of Tahera's Jericho pipe, has been assessed by a small mini-
bulk sample. The following results were returned from the Muskox sample:

<<
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Hole Type Tonnes Treated Carats Recovered Sample Grade
(+1.0mm) (ct/hundred tonnes)
-------------------------------------------------------------------------
Reverse Circulation 11.5 5.3 46 cpht
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Core 35.5 11.5 32 cpht
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A large area of the Muskox kimberlite has not been evaluated by the
sampling conducted to date, and thus a representative diamond grade has not
been determined. The Muskox kimberlite is significantly larger than Tahera's
Jericho pipe; the inferred surface trace of the kimberlite measures
approximately 250 metres by 270 metres. Several unsourced kimberlite indicator
mineral trains exist on the property, and a number of geophysical targets
require drill testing.

Transaction Summary

Over the period of 2004 - 2008 Tahera will design, conduct, execute, and
fund programs (including some or all of exploration, valuation bulk sampling,
scoping study, and feasibility study) and complete expenditures of
C$11 million to earn a 50% general profit interest (GPI) in the property.
Further activity on the rest of the property will be funded based on each
party's interest and standard dilution provisions apply if one party elects
not to continue funding.
In the event of the identification of an economically feasible
development project as determined by an independent consultant, Tahera will be
operator of development projects with defined value of less than or equal to
C$750 million and De Beers will be operator of development projects that
exceed that value. Development project values are defined as undiscounted
estimated revenues less operating costs and capital expenditures. Each party
will market 100% of the production from the projects they operate and remit
the appropriate proportion of net cash flow to the other party. By means of an
arithmetical formula for each individual project, Tahera can elect to increase
its ownership to 75% and De Beers to 70% depending on the outcome of the
feasibility studies.
This is the first agreement in which De Beers Canada has invited another
diamond company to conduct an exploration and development program as the
operator on its lands. Both parties recognize the importance of this agreement
as it greatly facilitates the potential development of modest scale diamond
projects on this land package due to the synergies that may exist with the
planned Jericho development (i.e. utilizing the Jericho diamond plant after
the Jericho reserves are depleted). Large-scale development projects on the De
Beers property would be advanced on behalf of Tahera and De Beers on a stand-
alone basis with De Beers as the operator.
Tahera plans to commence an aggressive exploration program on the
property that will focus on delineation and prioritization of kimberlite drill
targets, and further evaluation of the Muskox pipe. The budget for the 2004
summer program will be finalized during the month of June, and the exploration
program will commence in July.
Dr. Jonathan Fowler, P.Geol., De Beers Canada, is the qualified person
with respect to the technical data reported in this release.

Tahera has scheduled a conference call at 11:00 a.m. Eastern Standard
Time on Wednesday June 9, 2004 to discuss this announcement and other recent
developments. Analysts and investors are invited to participate in the call by
dialing 416-640-4127 or toll-free 1-800-814-4860. To access a conference
replay dial 416-640-1917 or toll-free 1-877-289-8525 and enter pass code
21053496, followed by the number sign.

About Tahera Corporation

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