August 1, 2002

News Release: Option/Joint Venture Agreement with Teck Cominco Limited

Mr. Glen Alston, President of Rhonda Corporation (RDM TSX-V) is pleased to announce the Company and its wholly owned subsidiary, Rhonda Exploration Inc., have entered into an Option/Joint Venture Agreement with Teck Cominco Limited ('Teck Cominco') to allow Teck Cominco to earn an initial 51% interest in Rhonda Exploration's Inulik property adjacent to the Tree claim containing the Knife diamondiferous kimberlite pipe. A 3% gross overriding royalty will be retained by Rhonda Corporation. Under the terms of the agreement Teck Cominco will subscribe, by way of a private placement, for $1,500,000 of Rhonda Corporation units priced at $0.55 cents and consisting of one common share and one two year warrant to purchase a flow through share at $0.75 cents. Teck Cominco has the right to participate in future financings of Rhonda Corporation to maintain its interest without dilution.

Rhonda Corporation has agreed to complete the planned 2002 summer field program for a total cost of $750,000. Teck Cominco will contribute technical expertise and geophysical interpretation to the 2002 program.

Within 60 days of Rhonda completing the 2002 program, Teck Cominco may elect to take up an option to earn a 51% interest in the property by incurring expenditures of $5,000,000 over 4 years.

Upon earning a 51% interest a joint venture will be formed and Teck Cominco may earn an additional 14% interest (for an aggregate 65% interest before dilution) in specific discoveries (ie: kimberlite pipes or deposits of other minerals which have been tested by at least one drill hole) by completing a feasibility study on the discovery area.

Upon earning a 65% interest in a specific discovery Teck Cominco may earn an additional 5% interest in the discovery area (for an aggregate 70% interest before dilution) by providing notice to Rhonda within 120 days of the delivery of a production plan, that they elect to carry Rhonda to production.

Upon exercising the option, and while Teck Cominco is solely funding the exploration, Teck Cominco will have the direction and control of the exploration programs and Rhonda will manage such programs as approved by Teck Cominco.

The parties will be entitled to take the product in kind and have rights to market their share, however Rhonda will give Teck Cominco the right to market any base metals or base metal concentrates.

Teck Cominco Limited is the ongoing company resulting from the merger in 2001 of Teck Corporation and Cominco Ltd., the two oldest, continuously operating mining companies in Canada with 2001 revenues of CDN$2.379 billion.

Teck Cominco Limited is a world leader in the production of zinc and has significant production of copper, gold and coal. This agreement marks their first significant diamond exploration partnership in Canada with a direct focus in Nunavut.

Rhonda Corporation's properties include the Knife diamondiferous kimberlite pipe in Nunavut on option with De Beers Canada Exploration Ltd.

Rhonda also holds an option to earn a 50% interest in 1,626 diamond claim units in the Temagami region of northeastern Ontario

WARNING: the Company relies upon litigation protection for "forward looking" statements

TEL: 800-793-8370 Robert L. d'Artois, VP Investor Relations
TEL: 403-269-5369
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