Diamond Fields International Ltd. is filing this default status report
pursuant to CSA Staff Notice 57-301 — failure to file financial statements on
time — management cease trade orders, in respect of the company’s
inability to file its annual audited financial statements for the year ended
June 30, 2006, by the deadline of Sept.
28, 2006, as required by National Instrument 51-102 continuous disclosure
obligations. Further to the company’s application under 57-301, on Sept.
29, 2006, and Oct. 3, 2006, the British Columbia Securities Commission and
the Ontario Securities Commission, respectively, issued cease trade orders restricting trading in the company’s
securities by specified insiders of the company until the company files the
annual financial statements and related annual filings. This default status
report is being filed to update the company’s notice of default dated
Sept. 29, 2006, and the company’s subsequent
default status report dated Oct. 12, 2006, as required by 57-301.
As a result of the factors noted in the notice of default, the company
has been unable to complete the annual financial statements and related annual
filings by the previously anticipated target date of Oct. 20, 2006, indicated in the first default status report, and now plans to file the annual
financial statements and related annual filings on Oct. 27, 2006. As a
result of the delays in completing the annual financial statements, the
company continues to anticipate a delay in filing its interim financial
statements for the three months ended Sept. 30, 2006, which are due by Nov. 14, 2006. The company has
been advised by the British Columbia Securities Commission that, as a result
of the anticipated delay in filing the interim financial statements, the
management cease trade orders will not be revoked until after the annual
financial statements and the interim financial statements have been filed by
the company. Accordingly, the company’s proposed rights
offering, previously reported in Stockwatch, is not permitted to proceed until such time as the annual financial
statements and the interim financial statements have been filed. The company
expects to file the interim financial statements by Nov. 24, 2006.
There have been no other material changes to the information contained in
the notice of default and the first default status report nor is there any
material information concerning the affairs of the company that has not been
generally disclosed.
