Record Sales Price and Production Update

Key points

  • The first parcel of 1,343 carats from the Diaz Prospect 1 (DP1) joint operations area sold in Belgium for $346,342, averaging $258 per carat.
  • A 1.78-carat fancy pink diamond in the parcel sold for $25,888, or $14,544 per carat, the highest per-carat price for an individual rough stone.
  • Mining in DP1 began January 27, 2007, and continued to March 12, 2007, producing an additional 2,725 diamonds weighing 1,393 carats.
  • Bonaparte Diamond Mines NL holds rights to 30% of sale proceeds and is obligated to pay 30% of operating and sales costs.

Diamond Fields International

Ltd. has realized a company

record average sales price of $258 (U.S.) per carat for diamonds

produced from joint operations mining with Bonaparte Diamond Mines NL.

The first parcel of 1,343 carats of marine diamonds produced from

Namibian offshore mining in the Diaz prospect 1 (DP1) joint operations area

with Bonaparte, has been sold in Belgium at an average value of $258 (U.S.) per

carat, for total sales revenue of $346,342 (U.S.). This is the highest average per

carat price received for diamonds recovered in the company’s ML111 licence

area and reflects the high-quality and larger average stone size in the DP1

area. The parcel included a 1.78-carat fancy pink diamond that realized a price of

$25,888 (U.S.) and at $14,544 (U.S.) per carat this is also the highest per carat price

received for an individual rough stone.

The initial 1,343 carats was produced in the first 17.5 days from

commencement of mining in DP1 on Jan. 27, 2007. Since then, continued

mining on the first anchor spread location up to March 12, 2007, has produced

an additional 2,725 diamonds weighing 1,393 carats at an average size of

0.51 carat per stone. Total production from commencement of mining to date is

currently an estimated 2,736 carats.

During February, availability of the dual-airlift mining system was below

optimal capacity due to problems with certain mechanical components requiring

repair or replacement. These engineering works have now largely been completed

and improvement in mining system availability and production is therefore now

anticipated.

Bonaparte has the right to 30 per cent of the proceeds from the sale of diamonds

recovered during the mining operations and is obligated to pay 30 per cent of the

operating and sales costs. The diamond sale was executed via DFI’s existing

sales agreement with Diamond Tenders (Belgium) NV in Antwerp, Belgium.

Since mining operations recommenced in late November, 2006, and prior to

the commencement of joint operations mining with Bonaparte, an additional

3,385 carats of diamonds have been recovered and sold for total revenues of

$630,440 (U.S.) at an average price of $186 (U.S.) per carat with such revenues being

entirely attributable to DFI.

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

with the sales results of the first parcel mined in terms of the mining

agreement with Bonaparte. The significant increase in value per carat for

diamonds recovered from the DP1 area strongly reflects the larger average

stone size and high quality of these goods.”

Roger J. Daniel, BSc, geology, London, PrSciNat, the company’s

president and chief executive officer, is a qualified person in terms of National Instrument

National Instrument 43-101, and has compiled and reviewed the scientific and technical

information contained in this news.

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