News Release (NR 03-26) - July 21, 2003

Bulk Sampling Program - Mud Lake Kimberlite

Snowfield Development Corp. (Snowfield) has commenced its Summer Exploration Program on the Ticho Diamond Project (Mud Lake kimberlite) located 45 kms southeast of Yellowknife, Northwest Territories. The Mud Lake kimberlite, the first new kimberlite located in this area since the discovery of the Drybones Bay kimberlite in 1994, was identified by Snowfield in its Phase I drilling program, carried out this past winter (2002-2003), on the 40,000+ acre Ticho Diamond Project. The primary goal of the Summer Exploration Program at Mud Lake is the identification of the outcrop of the kimberlite beneath the glacial cover. Such an occurrence will allow a bulk sample (500 tons) to be easily taken. The project benefits enormously from its close proximity to Yellowknife where services, skilled labor and road infrastructure are available. The Ticho Diamond Project area is connected to Yellowknife in the winter by an ice road and in summer by water transport along the eastern shore of Great Slave Lake. The structure of the Mud Lake kimberlite appears to indicate that it is a shallow dipping "multiple-sheet-like" feature. The true thickness of each layer has yet to be established but from the company's first drilling program carried out earlier this year the thickness of the first layer is 4 to 6 meters thick. The high indicator mineral counts together with kimberlite fragments from sample sites down ice (approximately 100 meters) of the body indicate that the kimberlite outcrops just below the glacial till cover. Till cover in this area is approximately 5 meters thick. The Summer Exploration Program at Mud Lake is directed towards the identification of this kimberlite sub-crop. This will provide the company with a unique opportunity to inexpensively acquire a representative bulk sample to produce a dense medium separator concentrate for macro-diamond analysis. Transportation of this large sample to Yellowknife will be carried out during the winter on the ice road along the shoreline of Great Slave Lake, with the kimberlite itself being less than 1 km from the lake.

In undertaking its Mud Lake exploration program, Snowfield has elected to assess the diamond content of the body by undertaking a bulk sample of the kimberlite which will provide a considerably higher degree of precision than would be available from a micro-diamond count from a small sample of drill core. A large bulk sample is preferred over a smaller sample since the distribution of diamonds within a kimberlite tends to be variable and large samples are required to obtain a representative parcel of diamonds. Usually, micro-diamond analysis of a small sample from drill core is the only avenue available for establishing a diamond content of a kimberlite when the body lies under a lake or at depth, or is significantly removed from readily accessible infrastructure. At Mud Lake these obstacles are not present and obtaining such a bulk sample is feasible and will enable Snowfield to assess the diamond content of the body with a considerably higher degree of precision than would have been available from the caustic dissolution of the small core samples obtained from Snowfield's winter drill program.

Further work being carried out at Mud Lake under Snowfield's Summer Exploration Program includes:

• Probing a further 500 grains of eclogitic garnet and pyrope garnet indicator minerals from core samples from the Phase I Drill Program. This will assist in the interpretation of the indicator mineral chemistry. Some of the core samples had large numbers of eclogitic grains (> 1000 grains) and more of these need to be probed. In the original probe work (NR 03-22) only 50 eclogitic grains were analyzed, this next batch will be considerably larger.
• Fifty kilometers of line cutting and further till sampling as well as geologic mapping. This work will assist in the delineation of the Mud Lake kimberlite.
• Detailed ground magnetic surveys over the area. Magnetic susceptibility readings from the Mud-Lake kimberlite indicate that the body is quite magnetic.
• Till sampling will also be carried out to the north and northeast of the Mud Lake kimberlite. The purpose of this is to determine the northern extent of the kimberlite and to determine whether or not other kimberlites exist in the immediate area. Some of the original till sample results together with the geophysical data indicate the presence of at least two further kimberlite bodies north of the Mud Lake kimberlite. The company will commence work in the Hurcomb Claim area once the fieldwork in the Mud Lake area has been completed. The Hurcomb Claim lies some 6 kms southeast of Mud Lake. Work planned for the Hurcomb area includes:
• Till sampling of selective targets in the Hurcomb area. The Hurcomb block was flown last year as part of Snowfield's high-resolution EM survey and some 35 discrete magnetic targets were identified, one of which is comparable to the large Drybones Bay kimberlite.
• Ground geophysics over these targets will also be carried out.

Gary Vivian P.Geol. of Aurora Geosciences Ltd. a qualified person under NI 43-101 has reviewed and approved the content of this news release. Aurora Geosciences Ltd., of Yellowknife, N.W.T., was retained by Snowfield to provide an independent project overview on the Ticho Project.

ON BEHALF OF THE BOARD

"Robert T. Paterson"

President

SNOWFIELD DEVELOPMENT CORP.