Diamond Fields Releases its 2005 Annual Financial Statements and Provides Updates on Sea Diamond Mining and Exploration Projects

Oct 6, 2005 | 2005, Corporate News

VANCOUVER, October 6th, 2005 – For the year ended June 30th, 2005, Diamond Fields International Ltd. (TSX:DFI) reported revenue (all amounts in US Dollars) of $5,391,621. Operating costs, before vessel repair and maintenance, totaled $2,529,539, generating a gross margin of $2,862,082. After vessel repair and maintenance, general, administrative and other income and expenses, the Company reported a net loss for the year of $3,814,248, or approximately $0.06 per share.

During July to October, 2004, diamond mining under a joint venture with Samicor produced 31,910 carats (the Company’s 50% share was 15,954 carats) from the Luderitz sea diamond concession (ML111). The Company resumed mining operations during June of 2005 with its own mining vessel, the mv DF Discoverer, which was acquired in late 2004. Following its acquisition, the mv Discoverer underwent a program of refit and commissioning prior to being placed in service. To the end of September, 6,365 carats have been recovered by the mv Discoverer and three parcels of rough diamonds totaling 4,948 carats have been sold at an average price of US$ 194 per carat for gross sale proceeds of US$ 961,000, confirming market demand for the Company’s high-quality Namibian product. Although ship operations have experienced periods of downtime owing to poor winter season weather conditions and onboard equipment issues, the Company’s mining team continues to gain operational experience and Diamond Fields anticipates improved diamond recoveries. The Company intends to increase future diamond production by improving the ship’s systems and pursuing the deployment of the new Sea Diamond Miner (SDM) technology, as well as undertaking sampling to identify additional areas of high-grade resource.

During the summer, the Company advanced its exploration project in Greenland by concluding two option agreements with Inco Ltd. on the Ammasalik Island nickel properties. Inco recently completed the summer season’s drilling program on the properties, and Diamond Fields will provide shareholders with any material developments.

In Liberia, further sampling and analytical work followed up on the initial reconnaissance surveys on the Grand Gedeh (gold) and Grand Cape (diamonds/gold) properties. The Grand Gedeh concession in central Liberia has yielded promising gold results from grid soil sampling over the Bar Tea Jam artisanal workings which measures about 5 km in strike length. Results from sampling of the weathered bedrock in this area returned 26 soil samples that averaged 0.2 g/t Au with one sample reporting 17.7 g/t Au. This fall’s sampling program will be extended to cover the entire area of artisanal mining, followed by drilling of identified targets.

On the Grand Cape property which has long hosted artisanal miners recovering diamonds and which is adjacent to recent kimberlite discoveries on a concession held by another mining company, results in the Camp Alpha area have shown high levels of kimberlite indicator minerals. The Company plans to continue sampling and further define the prospect with a geophysics program this fall, followed by drilling.

In response to significant interest from the European market, the Company is actively pursuing the listing of its shares on the London Stock Exchange’s Alternative Investment Market (AIM) in order to address its ship acquisition debt obligation and finance its business plan, including the potential acquisition of an additional marine mining/exploration vessel.

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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