Formal Mining Agreement and Continued Strong Diamond Recoveries From Early Offshore Joint Operations

Diamond Fields International

Ltd. has

concluded a formal mining agreement with Bonaparte Diamond Mines NL

and that diamond production from the joint operations areas

continues to deliver strong results.

In terms of the formal mining agreement, DFI will continue current mining

with its vessel, the MV DF Discoverer, for a period of six months in 2007, with

provision to continue thereafter for up to 12 months, by mutual agreement.

Thereafter, any additional mining will be subject to review by the parties of

available resource at that time. In summary, as DFI has elected to continue to

operate the joint mining operations will be conducted on a 70-per-cent-DFI-30-per-cent-Bonaparte revenue-and-cost-share basis. Further details of the agreement are

included below.

The initial mining operations in the joint operations area have continued

to produce strong results. A total of 2,612 stones, with an average size of

0.53 carat per stone and weighing 1,343 carats (with the two largest stones being

9.20 carats and 5.81 carats) have been produced in the first 17.5 days of

mining since commencement of operations on Jan. 27, 2007. This first parcel

of 1,343 carats was transported from the mining vessel to Windhoek, Namibia, on

Feb. 14, 2007, in preparation for exportation and sale in the next two to three weeks via DFI’s existing sales agreement with Diamond Tenders (Belgium) NV in

Antwerp, Belgium.

The mining completed to date continues to show that at the present

location, mineralization and payable grades are more extensive than originally

defined within the estimated 63,000-carat indicated resource area.

Consequently, mining at the present location has extended beyond the defined

indicated resource boundaries within DP1 and the defined mining area has been

expanded by mutual agreement to incorporate these additional areas of payable

grade.

DFI’s president and chief executive officer, Roger Daniel, commented: “We are delighted to

have now signed the formal mining agreement with Bonaparte and are extremely

happy with the continued strong results from the initial mining results from

the DP1 joint operations area. We now look forward to the sale results from

this first parcel.”

Details of formal mining agreement

A formal mining agreement has been signed between DFI’s 100-per-cent-owned

subsidiary, Diamond Fields (Namibia) (Pty.) Ltd. (DFN) and Bonaparte’s 100-per-cent-owned Namibian subsidiary, Bonaparte Diamond Mines (Namibia) (Pty.) Ltd. (BDN)

relating to mining operations on the Diaz Prospect 1 (DP1) joint operations

(JO) area in mining licence area ML111 held by DFN.

In terms of the agreement, DFN has the first option to mine the indicated

resources identified in the JO area. If mining is conducted by DFN, then the

gross sales value of mining production will be shared as follows: 70-per-cent share to

DFN and 30-per-cent share to BDN. Agreed operational costs will be shared between the

parties on the same basis. If DFN opts not to mine the resource, or if DFN’s

option to act as mining operator as defined in the agreement is terminated or

lapses within six months, or if no mining is undertaken for a period of six months,

then BDN will have the right to undertake mining operations. If mining is

conducted by BDN, then DFN will receive a royalty of 14 per cent of gross sales value

from any mining operations in the JO area. BDN will then be entitled to an 86-per-cent

share of the gross sales value and will be responsible for all operational

costs, including mining costs.

Mining operations will be overseen by a management committee to consist of five members with representatives from DFN and BDN, the appointed mining operator

having three members on the committee. The committee will meet regularly during

mining operations and certain key decisions, including approval of operating

costs and mine plan, will require unanimous decision by the committee. The

mining operator will be responsible for providing all equipment and manpower

needed to run the operations and carry out the mine plan, in accordance

with all regulated requirements and conditions of licence. Basic performance

criteria have been set for DFN as mining operator. BDN will be required to

contribute cost contribution by way of cash call on invoice 14 days in advance

with any shortfall to be made good upon call. Where DFN is the mining

operator, the agreement may be suspended if BDN fails to pay cash call or if

its share of costs have to be offset against revenue for more than two

consecutive months. BDN may withdraw from this agreement at any time, by

giving due written notice. DFN will have the right to sell all product

recovered during the tenure of this agreement in terms of its existing

marketing agreement. Associated sales costs will be paid by BDN and DFN

proportionate to their revenue interests as provided for in terms of the

agreement. Standard terms for conflict resolution and arbitration are included

in the agreement.

Mr. Daniel, BSc (honours) geology, London, PrSciNat, the company’s

president and chief executive officer, is a fellow of the South African Institute of Mining and

Metallurgy (SAIMM), a registered geological scientist with the

South African Council for Natural Scientific Professions (SACNASP) and a qualified person in terms of NI43-101, has compiled and reviewed the

scientific and technical information contained in this news release.