May 30, 2002 | 2002, Corporate News

Mr. H. D. Lee, Chief Financial Officer of Diamond Fields International Ltd. (DFI-TSX), is pleased to announce that as buildup of diamond production continues, the Company recorded a quarterly net income for the first time in its history. Net income for the Company’s third quarter ended March 31, 2002 was $69,912, compared with a net loss of $1,125,550 for the same period in 2001.

Operating profit margins from Diamond Fields’ joint venture with Trans Hex Group continued to improve significantly due to low production costs and better mining efficiencies since the start of full-scale mining on November 6, 2001. Results from the operations to March 31, 2002 were as follows:

                               Joint venture          DFI's share
                              March 31, 2002       March 31, 2002
                             Quarter    Nine   Quarter       Nine 
                                      months               months
Carats produced               10,330  26,800*    6,198     16,080
Carats sold                   11,235  21,359     6,741     12,815
Gross profit from operations                  $851,343 $1,244,336
* Full scale mining commenced on November 6, 2001

At March 31, 2002, the Company’s share of the joint venture’s diamond inventory was nearly 3,300 carats recorded at a cost of $444,000. These were sold in April and May for gross proceeds of approximately $800,000. Market prices for the Company’s diamonds have continued to strengthen subsequent to March 31, 2002.

During the quarter ended March 31, 2002, the Company incurred $56,965 in financing costs. The Company plans to develop and mine its known diamond resource outside of the joint venture area and is currently in discussions with prospective lenders with respect to project financing for the purchase of its own dedicated mining vessel equipped with processing plant and mining equipment.

Mr. Lee stated: “With the combination of our low cost structure, low debt position, healthier diamond prices and our mining experience over the past 12 months, we are in an excellent position to improve substantially our operating profitability with our joint venture operations and with the operation of our own dedicated mining vessel.”

Horng Dih Lee
Chief Financial Officer and Corporate Secretary
For further information contact H.D. Lee: (604) 682-2113
Website – https://dfrgold.com

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 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.

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