Diamond Fields Files Amended and Restated Q3 Financial Statements

As a result of a review by the British Columbia Securities Commission (BCSC), Diamond Fields International Ltd. is issuing this press release to clarify its disclosure.

The financial statements for the nine months ended March 31, 2014, required correction of some comparatives, accounting policies and disclosures, which in aggregate are regarded as material. Consequently, the financial statements for the nine months ended March 31, 2014, have been amended and restated.

The material revisions made to the interim financial statements, March, 2014, are as follows:

Comparative comprehensive loss for the three and nine months ended March 31, 2013, as shown in the interim financial statements, March, 2014, has been respectively amended from $214,264 to $227,264 and from $478,419 to $491,419. The comparative comprehensive accumulated deficit and shareholders’ equity as at March 31, 2014, have been respectively corrected from $55,813,780 and $793,812 to $55,826,780 and $806,812. The comparative figures for the three- and nine-month-period net loss, non-cash interest payment, borrowings, and cash at beginning and end of period disclosed in the condensed consolidated interim statement of cash flows of the interim financial statements, March, 2014, were also corrected to agree with corresponding amounts disclosed in the interim financial statements for the nine months ended March 31, 2013, filed on SEDAR.The company updated note 5(l), summary of significant accounting policies for accounting standards adopted during the period, and note 5(m), accounting standards not yet effective. The company has evaluated the arrangement of the Atlantis II project under the criteria within IFRS 11 (international financial reporting standards) and has concluded that the arrangement is not jointly controlled. The evaluation is disclosed in note 5(l), note 5(m) and note 12 of the amended and restated financial statements. The company provided a discussion of the changes in convertible debentures from July 1, 2013, to March 31, 2014, and disclosed the basis of valuation and classification of the debentures in note 10 of the amended and restated financial statements. The company’s new debentures issued in March, 2014, are classified as hybrid instruments, as they contain both derivative and debt characteristics. The convertible debt instruments are segregated into derivative financial instruments and other financial liabilities at the date of issue. This change has caused a reduction of $27,201 to the convertible debt and a reduction of $13,983 to derivative financial instruments. The figure for convertible debentures changed from $250,697 to $223,496, and the figure for derivative financial instruments changed from $226,589 to $212,606, causing a positive impact on the loss for the period and accumulated deficit by $41,184. Accumulated deficit changed from $56,917,258 to $56,876,074.

• Comparative comprehensive loss for the three and nine months ended March 31, 2013, as shown in the interim financial statements, March, 2014, has been respectively amended from $214,264 to $227,264 and from $478,419 to $491,419. The comparative comprehensive accumulated deficit and shareholders’ equity as at March 31, 2014, have been respectively corrected from $55,813,780 and $793,812 to $55,826,780 and $806,812. The comparative figures for the three- and nine-month-period net loss, non-cash interest payment, borrowings, and cash at beginning and end of period disclosed in the condensed consolidated interim statement of cash flows of the interim financial statements, March, 2014, were also corrected to agree with corresponding amounts disclosed in the interim financial statements for the nine months ended March 31, 2013, filed on SEDAR.
• The company updated note 5(l), summary of significant accounting policies for accounting standards adopted during the period, and note 5(m), accounting standards not yet effective. The company has evaluated the arrangement of the Atlantis II project under the criteria within IFRS 11 (international financial reporting standards) and has concluded that the arrangement is not jointly controlled. The evaluation is disclosed in note 5(l), note 5(m) and note 12 of the amended and restated financial statements.
• The company provided a discussion of the changes in convertible debentures from July 1, 2013, to March 31, 2014, and disclosed the basis of valuation and classification of the debentures in note 10 of the amended and restated financial statements. The company’s new debentures issued in March, 2014, are classified as hybrid instruments, as they contain both derivative and debt characteristics. The convertible debt instruments are segregated into derivative financial instruments and other financial liabilities at the date of issue. This change has caused a reduction of $27,201 to the convertible debt and a reduction of $13,983 to derivative financial instruments. The figure for convertible debentures changed from $250,697 to $223,496, and the figure for derivative financial instruments changed from $226,589 to $212,606, causing a positive impact on the loss for the period and accumulated deficit by $41,184. Accumulated deficit changed from $56,917,258 to $56,876,074.

The company also disclosed in a maturity table in note 10 of the amended and restated financial statements how the current and non-current portions of convertible debentures were determined. Convertible debentures amounting to $99,340 classified under non-current liabilities were corrected and reclassified under current liabilities in the amended and restated financial statements.

Accordingly, the company filed on SEDAR the amended and restated financial statements for the quarter ended March 31, 2014, today.