Diamond Fields Announces Jack McOuat to the Board of Directors and Reports Third Quarter Results

May 28, 2004 | 2004, Corporate News

Vancouver, May 28, 2004 – Diamond Fields International Ltd. (TSX: DFI) is pleased to announce the appointment of Jack F. McOuat, P.Eng. to its Board of Directors. Mr. McOuat has had a very distinguished career in mining over the past 50 years. He is a founding partner of the world renown mining consulting firm of Watts, Griffis and McOuat Limited and has been involved in the discovery and development of many major mineral deposits around the globe. Mr. McOuat has been on the Board of Directors of numerous distinguished mining companies including Cominco Ltd, Echo Bay Mines Ltd., and Euro-Nevada Mining Corp. In addition, he has a history with Diamond Fields having served as a director of DFI’s predecessor company Diamond Fields Resources Inc., and played a key role in the sale of that company to Inco Ltd. in 1996.

Mr. Gregg Sedun, CEO of Diamond Fields stated “Having Jack McOuat join our Board of Directors will be a great addition to our Company. His extensive and varied experience in the mining industry worldwide as well as the relationships he has developed over a very successful 50 year history in the mining business will be a tremendous benefit and asset to Diamond Fields. We look forward to his contributions in helping build our Company.”

Third Quarter Results
Diamond Fields announced a net loss for the three months ended March 31, 2004 of US$641,973 or $0.01 per share, compared with a net loss of US$141,721 or $0.00 per share for the same period in 2003. Year-to-date the net loss is US$1,342,991 compared with a loss of US$977,787 for the same period of 2003.

All revenue for the nine month period ended March 31, 2004 resulted from the sale of diamonds held in inventory or recovered during operations. A total of 8,872 carats were sold at an average price of approximately $145.87 per carat generating revenue of $1,294,182, up from revenue of $1,252,932 on the sale of 8,934 carats for the same period in the 2003 fiscal period. Production, royalty and selling expenses associated with the sale of inventory totaled $881,218; whereas, these operating costs for the same period in fiscal 2003 were $966,167. The Company generated an operating margin of $412,964 for the nine month period ended March 31, 2004 compared with $286,765 for the same period in fiscal 2003.

During the nine month period ended March 31, 2004, operations, including exploration and development, together with general and administrative costs, were financed from cash on hand at the beginning of the period, from revenue generated by the sale of diamonds during the period and from a non-brokered financing.

Diamond Fields continued to create the conditions for long-term growth. The Company expanded diamond and nickel exploration activities, broadened the Company’s scope to include additional mineral exploration and completed non-brokered private placements totaling C$8,100,000. Proceeds from the financing and cash flow generated by operations will allow the Company to expand its diamond and other mineral exploration activities

Overview of Activities
In January 2004, Diamond Fields announced the results of the 2003 fieldwork conducted on its nickel project located on Ammassalik Island off the southeast coast of Greenland. Mapping and sampling extended the strike length of the most prospective horizon to over 40 kilometres in four structurally repeated zones. Fieldwork has recovered locally derived boulders with anomalous (0.2%-1%) nickel emanating from three of the four horizons. Diamond Fields’ geologists are greatly encouraged by these results and plan to conduct an airborne Mag/EM geophysical survey as soon as weather permits.

On February 24, 2004, Diamond Fields appointed Mr. Kenneth E. Hecker to the positions of Chief Operating Officer and Chief Financial Officer). Mr. Hecker joined Diamond Fields to guide the process of exploring and developing the Company’s international diamond and nickel projects, while seeking opportunities to acquire new economic mineral projects worldwide. On March 23, 2004 the Company acquired the Ogna Nickel-Copper project in southwestern Norway consisting of the Bjorndalsnipa (Ni, Cu) and Gulldragsvatn (Ni, Cu, Ti) properties. The properties are subject to a 1% net smelter royalty.

Diamond mining operations are scheduled to recommence on the Luderitz Concession by early June 2004. The term of the joint venture agreement is for an initial six-month period, with Diamond Fields having the sole option to renew the joint venture on the same terms for a further six-month period, subject to agreement on an acceptable mine plan.

With respect to the Ogna Nickel-Copper Project in Norway, the Company plans an exploration drilling program commencing in late May 2004, on promising geophysical targets in altered and mineralized intrusive rocks of the Rogaland intrusive massifs.

On April 16, 2004 the Company obtained two mineral reconnaissance licenses in Liberia, one of which is a diamond prospect, the other a gold prospect. Diamond Fields is planning sampling programs to attempt to define anomalous areas on both these concessions.

Diamond Fields International Ltd. is an internationally active exploration and mining company pursuing mineral opportunities worldwide. The Company’s corporate strategy is to maximize cash flow from its Namibian marine diamond concessions and to systematically explore and develop its international mineral exploration projects. In addition, the Company continues to explore opportunities to acquire new economic mineral projects worldwide. Additional information is available on the Company’s website at www.diamondfields.com.


“Gregg J. Sedun”

Gregg J. Sedun, President and Chief Executive Officer

For further information contact: Investor Relations (1-888-682-2113)
Website: www.diamondfields.com

All dollar values are stated in U.S. currency unless otherwise specified.

Forward-Looking Statements:
Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in Diamond Fields’ period filings with Canadian Securities Regulators. Such forwardlooking information represents managements’ best judgment based on information currently available. No forwardlooking statement can be guaranteed and actual future results may vary materially. Diamond Fields does not assume the obligation to update any forward-looking statement.

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