Leitrim Group Inc.
Ottawa, Ontario, Canada

August 1, 2002

Leitrim Group Inc. (TSX Venture - LTM) announces a Letter of Intent for Qualifying Transaction

Leitrim Group Inc. (the "Corporation" or "Leitrim") is pleased to announce that the Corporation has entered into a letter of intent dated for reference July 17, 2002 (the "Letter of Intent") with 3929311 Canada Inc. ("3929311"). Under the Letter of Intent the Corporation has agreed to make an offer to purchase and takeover bid (the "Proposed Acquisition") for all of the issued and outstanding securities of 3929311. The Proposed Acquisition is an arm's length transaction. At the time of closing 3929311 is expected to have an aggregate of 18,333,333 Common Shares, Series "A" Special Shares and Series "C" Special Shares (collectively "3929311 Shares") outstanding.
The consideration for the 3929311 Shares shall be payable by the issuance of 1 common share ("Leitrim Common Share") for each 1 issued and outstanding 3929311 Share. If all the 3929311 Shares are acquired, it will result in the distribution of 18,333,333 Leitrim Common Shares and a deemed aggregate consideration of $3,666,666, or $0.20 per Leitrim Share.

3929311 is a non-reporting federal company and was incorporated on August 1, 2001. 3929311 holds 883 non-contiguous mineral claims comprising approximately 50,000 hectares (the "Properties") in the Colonge River area of Pontiac Country, Quebec. The Properties are located within Quebec. The nearest major communities are Fort Colonge, Quebec, 75 kilometers to the southeast, and Pembroke, Ontario, 65 kilometers to the southwest.

3929311 has no proven or probable reserves and to date has not had any revenue or sales. Based on unaudited financial statements of 3929311 as at February 28, 2002, 3929311 had nominal net tangible assets, cash on hand of $131,077 and a deficit of $293,972. Since August 1, 2001, 3929311 has incurred approximately $202,000 in geological exploration and development of the properties.

The directors upon completion of the proposed transaction are expected to be Desmond Burke, David Edwards, Robert Broomfield, Girvan Patterson, John Roberts, Brian Penney, Brian Kopke, Norman Swedko, Ross Tuddenham and subject to the approval of Leitrim and 3929311, two nominees as chosen by a principal shareholder of 3929311.

Desmond Burke the discoverer of the exploration property and principal owner of 3929311, has been actively seeking diamonds in west Quebec since the mid 1980s. He has also explored for diamonds in Guyana, South America, and the Volodga region of Russia. He created a computer program in 1990 to compress every known address in Canada into a small, easily extractable database. The computer program was marketed under the name ZipCode.

Ross Tuddenham, a former member of the Royal Canadian Mounted Police, left the force in 1966 to pursue a business career. He founded Douglas Laboratories, a successful Ottawa medical company in 1969.

Norman Swedko, a lawyer practicing corporate business law in Ottawa, Ontario since 1969 is a partner in the firm of Radnoff Pearl Slover Swedko and Dwoskin LLP. He received his degree from Osgoode Hall Law School (1969) and a B.Comm. from Carleton University (1966).

Brian Kopke, a Unitarian Minister, received a degree in geology from Colby College, Waterville, Maine (1967) followed by a graduate degree in religion from Harvard University (1970). With worldwide experience consulting on development and teamwork issues for boards he brings a wealth of global experience to the management team.

The current members of the board of directors of the Corporation are John A. Roberts, Brian K. Penney, Girvan L. Patterson, Robert A. Broomfield and David Edwards, all of whom will continue a board members of Leitrim upon completion of the proposed transaction.

In conjunction with the Proposed Acquisition, Leitrim will complete a private placement of up to 1,000,000 Common Shares at a price of $0.20 per Common Share.

In addition, the Corporation will grant additional stock options to acquire 1,833,333 Leitrim Shares to qualified individuals in conjunction with its Qualifying Transaction. Any stock options granted will be granted in accordance with the rules of the Exchange, and to a maximum of 10% of the issued and outstanding common shares of the Corporation, or such greater number as may be permitted by the Exchange. A $0.20 price is hereby reserved for such granting of stock options.

Upon completion of the acquisition of 3929311, the Corporation will be classified as a Mining Issuer on The TSX Venture Exchange.

Completion of the transaction is subject to a number of conditions, including but not limited to, TSX-Venture Exchange acceptance and majority of the minority shareholder approval. The transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed, or at all.

Investors are cautioned that, except as disclosed in the Management Information Circular of Leitrim to be prepared in connection with the transaction, any information released or received with respect to Leitrim's potential Qualifying Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Leitrim should be considered highly speculative.

If required by the TSX-Venture Exchange, Leitrim will retain a member firm act as a sponsor in connection with the transaction. An agreement to sponsor should not be construed as any assurance with respect to the merits of the transaction of the likelihood of completion.

For further information, please contact Brian Penney a director of Leitrim, by telephone at 902-425-7424.

The TSX-Venture Exchange has in no way passed upon the merits of the proposed transaction and neither approved nor disapproved the contents of this press release. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this information.

Bryson Burke Diamond Corporation
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