News Release (NR 04-13) - September 2, 2004

DRILLING ON TICHO PROJECT COMMENCED.

     Snowfield Development Corp. ("Snowfield") announces that the Mackenzie Valley Land & Water Board ("MVL & WB") has issued the Company a five year Class "A" Land Use Permit which authorizes Snowfield to continue exploration activities on its Ticho Diamond Exploration Project. Subsequent to the issuance of the Land Use Permit, Snowfield has commenced drilling operations on the Ticho Project near Drybones Bay, Great Slave Lake, 45 km S.E. of Yellowknife, N.W.T.

     Snowfield's first hole of the 2004 drilling program was collared at the Mud Lake kimberlite discovery on September 2, 2004. The Mud Lake kimberlite body was first discovered by Snowfield in March 2003, as announced on March 10, 2003 (NR 03-14). The 2004 Phase II drilling program will consist of 20 holes designed to delineate the kimberlite body, which was intersected in 9 of the 11 holes in the 2003 Phase I drilling program. This delineation drilling will facilitate the taking of a 500 tonne bulk sample to determine the potential diamond content of the Mud Lake kimberlite.

     Snowfield will concurrently be conducting exploration drilling at Aspen and Pond lakes, located approximately 1 km north-east of Mud Lake, to identify the location of an additional three possible kimberlites identified by geochemical and geophysical exploration and announced (NR 04-08) June 8, 2004.

     On August 28, 2004, construction materials required to construct a 15-person year-round camp with full facilities were shipped by barge to Pebble Beach which is located 4 km S.E. of Drybones Bay and 1 km from the Mud Lake kimberlite. Construction of the six-building camp facility is scheduled to commence on September 7, 2004, and should be finalized within two weeks. The Pebble Beach exploration camp will support Snowfield's regional exploration programs for the next five years.

ON BEHALF OF THE BOARD

"Robert T. Paterson"

President

SNOWFIELD DEVELOPMENT CORP.

THE CANADIAN VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENTS HEREOF.