Diamond Fields: Conversion of Debt

Jul 26, 2007 | 2007, Corporate News

Cape Town, July 26, 2007) – Diamond Fields International Ltd. (DFI:TSX) (“DFI” or the “Company”) is pleased to announce that, further to its news release dated June 22, 2007, Spirit Resources SARL (“Spirit”) has converted all of the outstanding debt under its credit facility with the Company into common shares of the Company. Spirit has converted the principal amount of US$3,901,110.53 into common shares of the Company on the basis of one common share for each US$0.15 of principal, as approved by the Company’s minority shareholders at the annual general meeting held on June 20, 2007. As a result, 26,007,403 common shares of the Company have been issued to Spirit.

Spirit is controlled by Mr. Jean-Raymond Boulle, the Company’s largest shareholder who, prior to the conversion of the Spirit debt, held approximately 16.9% of the Company’s issued and outstanding shares. Following the issuance of the 26,007,403 common shares to Spirit, Mr. Boulle holds, directly or indirectly, an aggregate of 61,181,708 common shares representing approximately 26.1% of the Company’s 234,406,715 outstanding shares.

With the repayment of all amounts owing to Spirit under the credit facility, Spirit has released all of its security over DFI’s assets and, together with the Company, will make the necessary filings to effect the discharge of, among other things, Spirit’s first ship’s mortgage over DFI’s mining vessel “DF Discoverer”.

Roger Daniel, the President and CEO of the Company, commented: “We are pleased to report that Spirit has fully converted the outstanding debt under the credit facility and, as a result, the Company’s financial position is significantly enhanced through the removal of substantially all of the Company’s non-trade debt from its balance sheet and the discharge of Spirit’s encumbrances over the Company’s assets, including its mining vessel DF Discoverer.”

DATED July 26, 2007.


“Roger J. Daniel”

Roger J. Daniel, President and CEO
For further information, contact Roger Daniel at +27 21 425 1990
Website: www.diamondfields.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 Company’s 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 other than in accordance with applicable law.

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