(Cape Town, May 23, 2007) — Diamond Fields International Ltd. (DFI:TSX) (“DFI” or the “Company”) is pleased to announce that very good production levels and cash flow from marine diamond mining continue from its joint operations program with Bonaparte Diamond Mines NL (“Bonaparte”), and also announces results of its 3rd diamond sale.
Mining operations in the Diaz Prospect 1 joint operations mining area in ML111, offshore Namibia, utilizing the Company’s vessel MV DF Discoverer, have been running efficiently since the end of March 2007. The recovery for April 2007 of 8,185 diamonds for 3,189 carats (“cts”) is the best monthly production since commencement of mining operations in late January 2007.
The strong results have continued into May 2007 with total production for the period 1-19 May of 5,549 diamonds weighing 2,257cts at an average size of 0.41cts/stone. May has also produced the highest single day’s recovery so far of 346 cts.
Total production from the joint operations mining since commencement on January 27, 2007 to May 19, 2007 now stands at 21,942 diamonds for 9,485cts at an average size of 0.43cts/stone
The third and largest sale of joint operations diamond production so far has also been completed and 3,344cts was sold for total sales revenue of US$661,615 at an average value of US$198/ct. The sale included a 6.16ct gem valued at US$2,219/ct, a 5.38ct gem valued at US$2,427/ct and 21cts of fancy colour gems valued at US$456/ct. To date a total of 6,766cts has been sold at an average price of US$222/ct generating total sales revenue of US$1,492,649. All diamond sales were executed via DFI’s existing sales agreement with Diamond Tenders (Belgium) NV in Antwerp, Belgium.
In terms of the joint operations mining agreement Bonaparte has the right to 30% of the proceeds from the sale of diamonds recovered during the mining operations and is obligated to pay 30% of both the operating and sales costs.
Roger Daniel, DFI’s President and CEO, commented: “We are delighted with the ongoing success of the joint operations with Bonaparte which are generating solid cash flows at these production levels”.
Roger J. Daniel, B.Sc. (Hons) Geology, London, Pr.Sci.Nat., the Company’s President and CEO, is a Fellow of the South African Institute of Mining and Metallurgy (SAIMM) and is also a registered geological scientist with the South African Council for Natural Scientific Professions (SACNASP) and is thus a Qualified Person in terms of National Instrument 43-101, has compiled and reviewed the scientific and technical information contained in this News Release.
DIAMOND FIELDS INTERNATIONAL LTD.
“Roger J. Daniel”
Roger J. Daniel, President and CEO For further information, contact Roger Daniel at +27 21 425 1990 Website: www.diamondfields.com
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.