News Release dated: January 7, 2003

TOLMIE PROJECT – JAMES BAY LOWLANDS EXPLORATION COMMENCES

The Company is pleased to announce the commencement of exploration work on its Tolmie Township property in the James Bay Area – Northern Ontario.

The first phase will consist of line cutting and ground geophysical (magnetic and MaxMin II electromagnetic) surveys. The first work program is expected to be completed within four to six weeks and progress results will be reported as soon as they are available. Belmont has acquired five potential diamond properties in this active diamond exploration district.

The most advanced diamond exploration project in the province of Ontario is DeBeers Canada Exploration Inc.’s 100% owned Victor project in the James Bay Lowlands, a region in which thousands of kimberlite indicator minerals have been discovered.

Belmont’s Tolmie Township property is well located at the intersection of the northwest trending Lake Timiskaming ("Lake Tim") Structural Zone with the north to northeasterly striking Kapuskasing Structural Zone ("Kapus"). Four known clusters of kimberlite pipes are associated with the Lake Tim zone. Similarly diamond bearing lamprophyre dykes located in close proximity to and thus probably associated with Kapus have been found near Wawa. Under 'Operation Treasure Hunt', the Ontario Geological Survey (the "OGS") is overseeing kimberlite indicator mineral studies for the zone stretching from Wawa to southwest of Moosonee and in portions of the James Bay Lowland.

Belmont’s Tolmie property is considered to be highly perspective to host one or more potentially diamond bearing kimberlite pipes. With respect to the geological setting and structural controls for diamond bearing kimberlite intrusions, the property is exceptionally well located. Untested magnetic features that may have a kimberlite source exist within the property boundaries.

ON BEHALF OF THE BOARD

Gary Musil,
Secretary/Director