Namibian Marine Diamond Project Update

Jan 23, 2004 | 2004, Corporate News

Vancouver, January 23, 2004—Diamond Fields International Ltd. (TSX: DFI) announces results of sales of diamonds from its Luderitz sea diamond concession off the coast of Namibia, as well as the temporary suspension of its marine mining operation. Increased operating costs resulting from the strength of the South African Rand has temporarily impaired the profitability of the marine diamond contractors resulting in a suspension of marine operations. While Diamond Fields investigates new production options, additional exploration and sampling will be conducted to add resources and value to the 1,000,000 carat Namibian marine diamond project.

Diamond Fields’ marine diamonds sales during December 2003 and January 2004 by the Company’s marketing partner Diamond Tenders Belgium totaled 6,292 carats and secured an average price of US$145.82 per carat.

As a result of the increase in strength of the South African Rand, operations at the marine diamond deposit have temporarily been suspended. The decision taken in conjunction with Lazig (Pty) Limited and Gemfarm (Pty) Limited, the owner and operator of the marine mining vessel mv Anya, has become necessary because the partners operating costs are in Rand while diamond revenue and daily hire rate paid to the contractor are denominated in US Dollars. Over the course of the past year the Rand has appreciated significantly relative to the US Dollar impairing the contractor’s margins.

“We believe it is prudent to suspend current mining operations while we work with Lazig and others to explore cost-effective production options including new technology. Over the short term, Diamond Fields International will focus on a sampling program to expand the diamond resource in the license area and significantly increase the value to the project,” says Roger Daniel, Diamond Fields International, Operations Director.

Diamond Fields International Ltd. is an internationally active exploration and mining company pursuing diamond and nickel opportunities worldwide. The Company’s strategy is to systematically explore and develop its international diamond and nickel projects, while seeking opportunities to acquire new economic mineral projects worldwide. Additional information about the Company is available on the website at Diamond Fields International Ltd.

“Gregg J. Sedun”
Gregg J. Sedun, President and Chief Executive Officer
For further information contact: Investor Relations (1-604-682-2113)

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 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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