Vancouver, October 1, 2004 Diamond Fields International Ltd. (TSX:DFI) and the shareholders of Discoverer Ltd., including Mr. Jean Boulle the Company’s controlling shareholder, have agreed after completion of due diligence by Diamond Fields to amend the terms of their agreement previously disclosed July 15th, 2004, the effect of which will be that Diamond Fields will not proceed with the acquisition of the Finland diamond licenses. Accordingly, Diamond Fields will not issue 2,250,000 common shares and pay the cash consideration of US $656,000 to the vendors as previously agreed.
Under the amended agreement with Discoverer, Diamond Fields will retain the right to continue negotiations on the previously mentioned exploration projects in Africa and Russia. For each project that is successfully negotiated, Discoverer Ltd. will receive a finder’s fee to be negotiated based on the successful completion of such project.
Gregg J. Sedun, President and CEO of Diamond Fields stated “Mr. Boulle and I are both happy with the amended terms and feel that this transaction is in the best interest of Diamond Fields and its shareholders. We are still actively pursuing the Russian and African projects and will keep the public updated on our progress”.
Diamond Fields International Ltd. is an internationally active exploration and mining company pursuing mineral exploration opportunities worldwide. The Company’s corporate strategy is to maximize cash flow from its Namibian marine diamond concessions and systematically explore and develop its international mineral exploration projects. In addition, the Company continues to explore opportunities to acquire new economic mineral projects worldwide.
DIAMOND FIELDS INTERNATIONAL LTD.
“Gregg J. Sedun”
Gregg J. Sedun
President and Chief Executive Officer
For further information contact Investor Relations (1-888-682-2113) Ext: 257
Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in the Diamond Fields’ periodic filings with Canadian Securities Regulators. Such forward-looking information represents management’s best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Diamond Fields does not assume the obligation to update any forward looking statement.