October 1, 2002

News Release: Kennecott completes $1 million private placement in Tahera Corporation

Tahera Corporation (TAH TSX) is pleased to announce that it has completed a $1 million private placement with QIT-Fer et Titane Inc., an affiliate of Kennecott Canada Exploration Inc. QIT and Kennecott are members of the Rio Tinto group of companies. QIT subscribed for 5,988,024 common shares of Tahera at a subscription price of $0.167 per share. The private placement was completed pursuant to the joint venture amending agreement negotiated between Tahera and Kennecott in March 2002. Tahera will use proceeds from the financing for general corporate purposes, and to fund permitting activities with respect to the Company's wholly-owned Jericho Diamond Project in Nunavut. Jericho Claims (Jericho Diamond Project)

As reported in the Company's second quarter report, Kennecott did not exercise its option to incorporate the Jericho Claims into the existing joint venture between the two companies. Kennecott cited the onerous work commitments required to maintain its option contained in the joint venture amending agreement as the reason for its decision. As a result, Tahera continues to hold a 100% interest in the Jericho Diamond Project.

The Jericho Claims are located in Nunavut approximately 430 kilometres north of Yellowknife, Northwest Territories. Six kimberlites have been discovered on the claims, including the Jericho kimberlite. The Jericho Diamond Project is centered on the land-based Jericho kimberlite.

Tahera is a unique Canadian diamond company as it has a positive feasibility study completed on an advanced stage diamond project. The Jericho Diamond Project feasibility study indicates robust economics for a modest- sized diamond mining operation. The study shows that the Project would produce 3 million carats over a minimum mine life of eight years. Based on a modeled diamond valuation of US$75 - US$88 per carat for the Jericho diamonds, the operating cash flow for the project ranges from $150 million to $200 million with an IRR from 34.3% - 50.7%, respectively.

During Kennecott's option period, the regulatory approval process for development of the Jericho Diamond Project remained active. Tahera now plans to resume permitting activities, and anticipates completing the final Environmental Impact Statement for the Jericho Diamond Project in early 2003. Tahera is very encouraged by the fact that key Nunavut stakeholders have shown widespread support of Tahera's goal of building Nunavut's first diamond mine.

Tahera will continue to assess the benefits of a strategic alliance with one of several groups that have expressed an interest in financing the Project.

Exploration

Tahera's exploration efforts are focused on discovering additional kimberlites in close proximity to the Jericho pipe, realizing that even modest-sized discoveries could enhance the economics of the existing Project. The Jericho Claims are considered highly prospective for further discoveries, as several unresolved kimberlite indicator mineral trains and a number of unresolved kimberlite float trains occur on the property. Planning for the 2003 spring and summer exploration programs on the Jericho Claims is underway.

Michael J. Michaud of SRK Consulting is Tahera's qualified person.

To find out more about Tahera Corporation (TSX: TAH), visit our website, www.tahera.com.

Tahera Corporation is focused on developing its highly prospective diamond projects in Canada's prolific Slave Craton. Tahera is the operator of its wholly-owned Jericho Diamond Project in Nunavut, and has joint ventures with two of the world's premier mining companies (Rio Tinto and BHP Billiton) on the Rockinghorse Property in Nunavut and the ICE Claims in the Northwest Territories. The common shares of the Company trade on the Toronto Stock Exchange under the symbol "TAH".

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For further information: please contact: Grant Ewing, Vice President
Investor Relations and Corporate Development, Tel: (416) 777-1998,
Fax: (416) 777-1898, Toll free: (877) 777-2004, Email:investor(at)tahera.com

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