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Gold/Mining/Energy : Global Diamond (GDRS) -- Ignore unavailable to you. Want to Upgrade?

To: Eugene Brill who wrote (55)	12/10/1997 10:50:00 PM
From: Eugene Brill	Read Replies (2) \| Respond to of 88

CLOSING OF US$6 MILLION PRODUCTION FINANCING ANNOUNCED. FOR IMMEDIATE RELEASE Contact: Eugene Brill VP Investor Relations Wednesday, December 10, 1997 (800) 424-6533 Trading Symbol: GDRS LA JOLLA, Calif. - Global Diamond Resources, Inc., ("Global") is pleased to announce that a large privately-held Middle Eastern investor conglomerate with multi-national operations ("MEIC") has closed a US$6,000,000 investment and loan agreement with Global. In terms of the agreement, the MEIC has acquired a 30% equity stake comprising of 3,525,241 shares of common stock in Global for an amount of US$3,000,000 and has simultaneously advanced an amount of US$ 1,600,000 to Global by way of a 15% secured convertible promissory note ("Note") for a period of five years, with provisions for early pre-payment without penalty. An additional $1,400,000 will be advanced to Global in terms of the Note upon fulfillment of certain conditions. It is expected that these conditions will be fulfilled in the first quarter of 1998. The principal and interest under the Note is convertible to a maximum of 903,908 common shares of Global at a rate of $.85 per share. In addition MEIC was granted 403,926 warrants to purchase shares of Global common stock at prices ranging between C$.75 and US$.75 per share. The capital invested and advanced to Global will enable Global to establish diamond production facilities at its estimated 81 million tonne Grasdrif and at its estimated 38 million tonne Caerwinning alluvial deposits as well as complete the bulk sampling at its Montrose kimberlite pipe, all three in the Republic of South Africa. Production should commence at Caerwinning in the first quarter of 1998 and at Grasdrif during the second quarter of 1998. The bulk sampling at Montrose should be completed by the end of the third quarter of 1998. Management estimates that the Grasdrif alluvial deposit should contain between 1,215,000 carats and 2,916,000 carats of large high quality gemstone diamonds valued at between US$759 million and US$1,823 million. As for the Caerwinning alluvial deposit, Management estimates that it should contain 445,000 carats of large high quality gemstone diamonds valued at $217 million. The Montrose kimberlite pipe is estimated, by Management, to contain between 900,000 and 1,350,000 carats of diamonds valued between $75 million and $165 million. Three nominees on the recently expanded nine-member Global Board of Directors will represent MEIC. Global also intends to establish a five member Executive Committee and appoint two members of MEIC to the Committee. MEIC is a Middle Eastern conglomerate that has been instrumental in the execution of mega-size projects in various Middle Eastern countries. Today the MEIC operates worldwide with offices in the Middle East, Europe, North America and the Far East. Simultaneous to the investment by MEIC, Global has acquired the remaining 50% holding in the Grasdrif property, that it did not previously own, from the Nabas Group. The Nabas Group will continue to participate in Global and will be represented by Mr. Charles MacDonald as a director on Global's Board of Directors. In addition the Board of Directors of Global has approved a two for one forward split of the outstanding common shares of Global. The record and effective dates of the split will be December 19, 1997. The split is subject to certain state and securities law approvals. This press release contains forms of forward-looking statements that are based on the Company's beliefs as well as assumptions made by and on information currently available to the Company. Such statements are subject to certain risks, uncertainties and assumptions, which are identified and described in the Company's 1996 Annual Report on Form-10-KSB and subsequent Quarterly Reports on Form 10-QSB on file with the SEC. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results will vary materially from those anticipated, estimated, or projected and the variations may be material. For more information about Global visit our Website at globaldiamond.com or call Eugene Brill at (800) 424-6533 or (619) 459-0045.