Diamond Fields reports first quarter results

Dec 1, 2003 | 2003, Corporate News

Vancouver, December 1, 2003— Diamond Fields International Ltd. (TSX: DFI) announced a net loss for the three months ending September 30, 2003 of US$316,377 or $0.01 per share, compared with a net loss of $242,108 or $0.00 per share for the same period in 2002. Current period losses resulted from a disruption of operations at the Company’s Namibia marine diamond concessions.

Mining on the Namibia Marine Diamond Project resumed in late September 2003, and results to date, continue to exceed the feasibility study estimates for the area. In April 2003 the mv Anya, the vessel contracted by Diamond Fields for marine diamond recovery, was sold to new owners. The sale required a change in flag state and classification society resulting in unexpected bureaucratic delays that prevented the vessel from returning to operation until September 2003. All of the Company’s revenue for the three-month period ending September 30, 2003 resulted from the sale of diamonds held as inventory and recovered during the prior year. The diamonds were sold at an average price of $158 per carat generating revenue of $89,137, down from $312,331 for the same period in 2002. Production, royalty and selling expenses associated with the sale of inventory totaled $81,421, whereas operating costs for the same period in 2002 were $170,465. The Company’s operating margin for the current period ending September 30, 2003 was $7,716 compared with $141,866 for the same period in 2002.

Operations, including exploration and development, as well as general and administration costs, were financed from cash at hand at the beginning of the period. Based on production activity subsequent to the three months ended September 30, 2003, and the private placement financing announced on October 21, 2003 the Company’s existing cash resources and anticipated cash flows are sufficient to meet its current level of operations, including maintaining its concessions in good standing.

Nickel and Diamond Property Acquisitions
On July 31, 2003, the Company expanded its diamond exploration activities and broadened the scope of its operations to include nickel exploration. The expansion was accomplished when Diamond Fields agreed to acquire exploration properties in Madagascar (nickel and diamonds), Greenland (nickel) and Sierra Leone (diamonds).

In October 2003, the Company announced non-brokered private placements totalling CAN$8,100,000 with the plan to issue 6,600,000 units at a price of CAN$0.60 per unit for aggregate proceeds of CAN$3,960,000, concurrently issuing 6,900,000 subscription receipts convertible into units on a one-for-one basis at a price of CAN$0.60 per subscription receipt for aggregate proceeds of a further CAN$4,140,000. These private placements closed on November 28, 2003, however the subscription receipt placement is subject to receipt of shareholder approval, which is being sought at the Company’s Annual General Meeting scheduled for December 17, 2003.

Proceeds from these private placements will be used to fund continued development of Diamond Fields’ Namibian marine diamond concession, as well as exploration activities in Greenland, Sierra Leone, and Madagascar, and for repayment of debt and general working capital purposes.

Diamond Fields International Ltd. is an internationally active exploration and mining company pursuing diamond and nickel 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 diamond and nickel projects. In addition, the Company continues to explore opportunities to acquire new economic mineral projects worldwide. Additional information is available on the Company’s new website at http://www.diamondfields.com.

“Marcel de Groot”
Marcel de Groot, Chief Financial Officer and Secretary

For further information contact: Investor relations (1-604-682-2113)
Website: www.diamondfields.com

All dollar values are stated in US 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 the Diamond Fields’ periodic filings with Canadian Securities Regulators. Such forwardlooking 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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