Vancouver, August 2nd, 2005 – Diamond Fields International Ltd. (TSX: DFI) is pleased to announce that DFI, Inco Limited (“Inco”) and Nuna Minerals A/S (“Nuna”) have entered into an agreement whereby Inco may earn an interest in exploration licenses previously optioned by Diamond Fields from Nuna on Ammassalik Island in East Greenland. These properties are adjacent to the Diamond Fields licenses optioned by Inco under a recent agreement, announced on June 2, 2005.
Announced in July 2004, Diamond Fields’ prior agreement with Nuna granted Diamond Fields the option to earn a 65% interest in its Ammassalik nickel exploration properties by making exploration expenditures of U.S.$ 1.7 million over 3 years. The new agreement modifies these terms to grant Inco the option to earn a 51% interest in up to 160 square kilometers of the property by spending at least U.S.$ 500,000 on the property by December 1, 2007. Inco is also granted a second option, such that if it spends a further U.S. $ 500,000 (for a total of U.S.$ 1,000,000) by December 1, 2007, it can earn its 51 % interest in the full 403 square kilometers. In either case, the remaining 49 % interest in the property would be shared by Diamond Fields and Nuna, with each retaining 24.5 % interests.
The Ammassalik nickel project has been explored by Diamond Fields since 2003, resulting in anomalous nickel showings over a wide area. The discovery showing, on the south coast of Ammassalik Island near Tassilaq, is similar to the ultramafic-hosted Thompson nickel mineralization, based on age, structural, geochemical and petrographic analysis.
President and CEO of Diamond Fields, Mr. Gregg J. Sedun said, “We are enthusiastic about our two agreements with Inco for nickel exploration in Greenland, and we believe Inco’s extensive nickel experience will greatly enhance the exploration potential of this project.”
Mr. Randal Cullen, Chief Geologist for Diamond Fields International is a Qualified Person as defined by National Instrument 43-101 and is responsible for program design and quality control of exploration undertaken by Diamond Fields.
DIAMOND FIELDS INTERNATIONAL LTD.
“Gregg J. Sedun”
Gregg J. Sedun, President and Chief Executive Officer
For further information contact: Investor Relations (604-682-2113)
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.