Waseco Resources Inc - News Release

Waseco to eliminate most of its debt
through share and royalty conversions.

Waseco Resources Inc "YWS" TSX-V
Wednesday October 15, 2003 News Release

Toronto, Ontario, October 15th, 2003. Waseco Resources Inc. (TSX-Venture: "YWS") announces that it has entered into an agreement with Diadem Resources Ltd. to convert $250,000 of debt into: a) a 2% NSR Royalty on its 60% interest in the Tewah Alluvial Gold Project; and b) a 2% gross diamonds royalty on its Attawapiskat Diamond Project. Each of these royalties can be repurchased by Waseco for $500,000 at any time prior to the commencement of commercial production or for $1 million at any time prior to the 1st anniversary of commercial production. In conjunction with this transaction, Diadem has agreed to forego all of its other interests in the Tewah Project and Waseco has agreed to first offer its interest in the Attawapiskat Diamond Project to Diadem should it sell or joint venture.

In a related but separate private transaction, private investors, including Waseco President Richard Williams, have agreed to purchase from Diadem 2,890,000 common shares and take an assignment of a Demand Note (the "Note") for $225,000 for an undisclosed consideration. Diadem will retain a 500,000 share position in Waseco. The investors have further agreed to convert the Note into shares of Waseco at a price of $0.10 per share (i.e. 2,250,000 common shares). These shares will be subject to a one year hold. The investors have also agreed to advance the company $25,000 by way of shareholder loans in order to meet its short term working capital requirements.

Waseco has also agreed to issue 1,160,000 common shares to Pt. Mas Bumi, an Indonesian company, in full settlement of services performed in Indonesia over a number of years. These shares are also being issued at $0.10 per share, and will be subject to a one year hold.

Jay Richardson, Director and Secretary Treasurer said: "We are very pleased to see these steps being taken to clean up Waseco's balance sheet with a resulting improvement also in Waseco's cash position. While this substantially reduces what has historically been a very strong relationship between Waseco and Diadem, both companies stand to benefit from these transactions. We would like to take this opportunity to thank Diadem for their support over the years and also to welcome the new investor group who have indicated that their intention is to be long term shareholders and assist Waseco in identifying new opportunites as well as realizing on existing ones."

Waseco Resources Inc. is a Canadian exploration company currently listed for trading on the TSX-Venture Exchange. The above noted release has not been reviewed for acceptance by the Exchange. Certain of the transactions referred to herein are subject to regulatory approval. This release may contain forward looking statements, the realization of which are subject to various uncertainties.

On Behalf of the Board Of Directors

Richard Williams

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