MineGem Inc. — Regulatory Filings 2000

Sep 27, 2000

FORM 27

THE SECURITIES ACT

MATERIAL CHANGE REPORT UNDER SECTION (75) 2

Item 1.Item 2.Item 3.Item 4.Item 5.Item 6.Item 7.Item 8.

Reporting Issuer**MESSINA DIAMOND CORPORATION,**4th Floor, 56 Temperance Street,Toronto, Ontario, M5H 3V5.Date of Material ChangeSeptember 25, 2000.Press ReleaseThe Press Release was sent on September 25, 2000 to BCE Emergis -- Toronto,Ontario.Summary of Material ChangeFor further information, attached hereto is a copy of the Press Release.Full Description of Material ChangeNo information other than that provided in Item 4 above is presently available.Reliance on Section 75(3) of the ActConfidentiality is not requested.Omitted InformationNo information has been omitted in respect to the material change.Senior OfficerMr. David Jones, Chairman, [416] 214-4884.

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Item 9. Statement of Senior Officer

The foregoing accurately discloses the material changes referred to herein.

DATED at Toronto, this 25[th] day of September, 2000.

MESSINA DIAMOND CORPORATION

Signed: “David Jones”

Per: ________________________________ David Jones, Chairman

E:\messina\F27-Sep00.doc

MINEGEM INC.

PRESS RELEASE

DATED: September 25, 2000 Toronto, Ontario

FOR IMMEDIATE RELEASE

LIQHOBONG SATELLITE PIPE MINE FEASIBILITY STUDY COMPLETED PROJECTED PRODUCTION OF 300,000 CARATS PER YEAR

MineGem Inc. (MGEM – CDN) has received the technical sections for the Final Feasibility Study (the “Study”) on the Liqhobong Satellite Pipe Mine Project (the “Project”) completed by Bateman Engineering Limited, with SRK Consulting being responsible for mineral reserves and mining.

The Study concludes that:

1. Open pittable mineral reserves are estimated to be 1,913,600 tonnes at a grade of 69 carats per hundred tonnes.

2. Recommended mine production would be at a rate of 420,000 tonnes per year to produce, when fully operational, approximately 300,000 carats per year. Total production over the five-year mine life is estimated to be 1.32 million carats of diamonds.

3. Total capital costs for the development of the Project are estimated to be US$7.1 million, including pre-production costs, mine development and construction, the processing plant, the diamond sorting facility, on-site housing, logistics, engineering, contractors’ fees, all working capital and a contingency allowance of 8%. Construction is estimated to take approximately seven months.

4. Total operating costs are estimated to be US$13.25 per tonne of ore processed, including contract mining, all plant operations, infrastructure, security, power generation, administration and related off-site costs.

MineGem expects to receive the Environmental Impact Assessment (“EIA”), from SRK Consulting by the end of September at which time the final financial model for the Project will be completed.

Evaluations by Independent diamondtaires in May 2000 of a 6,000 carat bulk sample of Satellite Pipe run-of-mine diamonds averaged US$41.24 per carat. The Company is currently negotiating and expects to sign a three-year diamond marketing agreement for the total production from the Liqhobong Satellite Pipe mine.

Final discussions with the Government of Lesotho on the terms of the mining lease are scheduled for late October.

The Industrial Development Corporation (“IDC”), a major South African development bank, who funded the completion of the Study, is currently examining the results as part of the agreement signed in March 2000. On completion of the Study, IDC will have earned a 10% shareholding in the company which will own the Liqhobong Satellite Pipe Mine. If the Study indicates that the mine is economically viable, under the terms of the agreement, IDC will provide an additional US$6.7 million to finance production, of which US$3.0 million will be by way of equity and the balance will be loaned on a commercial basis. On providing this financing the IDC will acquire a cumulative 40% equity interest in the Project Company.

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The Company is encouraged by the results to date and believes that it will be in a position to make a production decision prior to the end of the year and that commencement of commercial production from the Satellite Pipe mine late in the second quarter of 2001 can be achieved.

With production from the Satellite Pipe, MGEM will be in a very good position to follow up on the positive pre-feasibility study previously completed by Fluor Daniel Southern Africa and Signet Limited on the much larger Main Pipe deposit at Liqhobong.

As part of the realignment of the Canadian stock exchanges, it is anticipated that the Company’s shares will commence trading on the on the Tier 3 of the Canadian Venture Exchange in early October.

Issued and Outstanding – 42,464,968 shares

For further information, please contact:

David Jones: Chairman

Telephone: +1 416 214 4884