Vancouver, February 17th, 2006 – Diamond Fields International Ltd. (TSX:DFI) (“DFI” or the Company”) announces results for the period ended December 31st, 2005.
Net loss for the six months ended December 31, 2005 was $(2,894,106) or $(0.03) per share, compared with a net earnings of $362,172 or $0.00 per share in 2004. All revenue for the six months ended December 31, 2005 resulted from the sale of diamonds held in inventory or recovered during operations. A total of 7,846 carats were sold at an average price of approximately $183 per carat generating revenue of $1,431,911. Comparatively, the Company sold 26,250 carats in the six months ended December 31 2004 at an average price of $205 per carat generating revenue of $5,391,621. Production, royalty and selling expenses associated with the sale of inventory totaled $2,324,888; whereas, these operating costs for the same period in 2004 were $2,490,067. 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 $(892,977) for the quarter ended December 31, 2005 compared with $2,901,554 for the quarter ended December 31, 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 Company incurred general and administrative expenses of $2,043,621 during the six months ended December 31, 2005 compared to $1,759,626 during 2004. Included in these amounts are financing fees and interest, which have increased due to the ship acquisition loan with Quest Capital Corporation and the note payable. The Quest Capital loan was repaid in full in November, 2005 with funds raised from the Company’s private placement closing, announced on November 7th, 2005. Office expense increased as a result of the Company’s expanded operations. Stock based compensation decreased due to the graded vesting of the Company’s stock option plan.
The complete report of the Company’s unaudited financial statements and related notes for the second quarter period ended December 31, 2005, together with Management’s Discussion and Analysis, have been filed on SEDAR and are available at www.sedar.com and on the Company’s website at www.diamondfields.com.
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.
DIAMOND FIELDS INTERNATIONAL LTD.
Roger Daniel, President and Chief Executive Officer
For further information contact Greg Girdler, Investor Relations at (1.604.682.2113).
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.