Diamond Fields Provides Corporate Update

Nov 18, 2005 | 2005, Corporate News

Vancouver, B.C. (November 18, 2005) — Diamond Fields International Ltd. (TSX:DFI) (“DFI” or the “Company”) announces that it held its Annual General Meeting on Wednesday, November 16, 2005, and reports that all of Management’s resolutions passed with substantial margins. Further to the Company’s news release dated November 7, 2005, in addition to approving other matters, shareholders approved the second tranche of the private placement of a total of 30,483,676 units and the participation therein of the Company’s largest shareholder, Mr. Jean-Raymond Boulle. Accordingly, a total of 6,090,000 units representing the second tranche of the private placement that were held pending shareholder approval have now been released in respect of the private placement. The Company raised total gross proceeds of Cdn$6,096,735 under both tranches of the private placement.

The Company also announces that it has repaid a loan obtained from Quest Capital Corporation (“Quest”) in the principal amount of Cdn$1,950,000. The loan, advanced in October, 2004, provided Diamond Fields with the funding to acquire its marine diamond mining vessel the mv DF Discoverer. Funds to repay the loan came from the first tranche of the Private Placement announced on November 7th, 2005. All security taken in connection with the loan, including a ship’s mortgage over the mv DF Discoverer, will be discharged by the lender.

Diamond Fields also announces results for the first quarter period. Net loss for the three months ended September 30, 2005 was $(1,141,526) or $(0.01) per share, compared with a net earnings of $811,898 or $0.01 per share in 2004. A total of 3,727 carats were sold at an average price of approximately $201 per carat generating revenue of $750,141. Comparatively, the Company sold 20,799 carats in the three months ended September 30 2004 at an average price of $210 per carat generating revenue of $4,376,775. Production, royalty and selling expenses associated with the sale of inventory totaled $849,528; whereas, these operating costs for the same period in 2004 were $1,921,057. The higher costs in 2004 resulted from higher production and the terms of the contract mining agreement with Samicor Mining (Pty) Ltd.

The Company generated an operating loss of $(99,387) for the quarter ended September 30, 2005 compared with $2,455,718 for the quarter ended September 30, 2004. Factors contributing to the loss included downtime due to equipment failures on the mv DF Discoverer, along with weather delays, a port call for refueling, and the unpredictable grade of the resource. The complete reports of the Company’s unaudited financial statements and related notes for the quarter period ended September 30, 2005, together with Management’s Discussion and Analysis of Financial Condition have been filed on SEDAR and are available at www.sedar.com and on the Company’s website at www.diamondfields.com.

Diamond Fields also announces the results of its third diamond sale of the year, which consisted of 1,965 carats sold at an average price of US $ 158.87 per carat, for total gross proceeds of US $ 312,181.

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.

“Gregg J. Sedun”
Gregg J. Sedun, President and Chief Executive Officer

For further information contact Investor Relations at (1.604.682.2113).
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 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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