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

To: Eugene Brill who wrote (58)	2/26/1998 8:28:00 PM
From: Eugene Brill	Respond to of 88

CORPORATE UPDATE. Fundamentally the Company continues to grow. The first of the earth moving equipment has started arriving at both Caerwinning and Grasdrif. The recovery units will be delivered within the next four to eight weeks. The large diameter core drilling at the Montrose Kimberlite pipe is scheduled to start in April 1998. Follow these links to view updates to our website: globaldiamond.com globaldiamond.com Do not hesitate to contact me for any further information. Regards; Eugene Brill.

To: Eugene Brill who wrote (58)	2/26/1998 8:31:00 PM
From: Eugene Brill	Read Replies (1) \| Respond to of 88

Letter to Shareholders. Global Diamond Resources, Inc. flourishes in difficult market conditions. The year 1997 was an extremely challenging year for the diamond industry in general and Global Diamond Resources, Inc ("Global") in particular. Two major financial events outside the control of management negatively impacted our industry and our company during this past year. The first was the multi-billion dollar collapse of Bre-X when it became apparent that their major gold find in Indonesia was in fact a hoax. The size and scope of this collapse led investors to dump all junior mining stocks to cover margin calls and to leave an industry where all were presumed guilty of fraud. Stock prices recorded losses of around 70% in a matter of days. The equivalent would be for the Dow Jones Industrial Average to loose 5,600 points in a few days! In addition to the collapse of the stock price and the resulting loss of shareholder value, raising of financing, essential in the exploration stage became near on impossible. In this arena Global was able to raise $808,486 in March. These funds were essentially used to complete the drilling program and the evaluation of the results at our Grasdrif property. The results of the drilling program allowed management to increase its estimates of the tonnage at Grasdrif from 54 million tonnes to in excess of 81 million tonnes. In addition, exploration activities conducted by the management of Global in a previous venture at Grasdrif confirmed the diamondiferous nature of the deposit as well as the size and quality of diamonds that may be expected from Grasdrif. Based on the foregoing Grasdrif may arguably be one of the largest alluvial deposits in the world in terms of tonnage. The second major financial event that negatively impacted the diamond industry was the financial turmoil in the Pacific Rim. This currency induced financial crises sent Asian stock markets tumbling and reverberated throughout the world's financial markets. In the wake of this financial Tsunami the Dow Jones Industrial Average incurred its largest single day point drop in history. This presumed threat to the US and European economies and the potential impact on Christmas jewelry sales in these markets as well as the threat to the emerging jewelry markets in the Pacific Rim placed additional strain on the diamond industry. The share price of De Beers Consolidated Diamond Mines Ltd., the foundation of the diamond industry, declined from $31¬ to $19d. The share price of the few more senior diamond exploration companies that had withstood the Bre-X tornado now also incurred large declines. In this hostile environment Global successfully completed a $6 million financing agreement, more fully announced on Wednesday December 10, 1997. Clearly the Middle Eastern Investment Group recognized the fundamental value of Global in a depressed market. The financing should allow Global to place its Caerwinning and Grasdrif projects into production in the first half of 1998 and the bulk sample at the Montrose property should be completed by the third quarter of 1998. Global is now making the transition from an exploration company to that of a production and revenue producing company. In addition Global successfully completed a stock split on December 19, 1997 in terms of which shareholders registered at the close of business on December 19, 1997 received one additional share for each held. You will receive a letter from our transfer agent, American Securities Transfer & Trust, Inc., with instructions on receiving new share certificates. The year 1998 promises to be an exciting year for your company because: - Global has the funding to commence commercial production; - Our properties have significant deposits and have all produced large high quality gemstone diamonds. Montrose reportedly yielded 6,900 carats of gemstone diamonds from approximately 46,000 tonnes of kimberlite at the turn of the century; Caerwinning has yielded in excess of 4,000 carats of large high quality gemstone diamonds from some 428,000 tonnes of alluvial gravel under the direction of the management of Global in a previous venture as well as under the tenure of Global and the management of Global directed the recovery of in excess of 500,000 carats of large high quality gemstone diamonds from some 19 million tonnes of alluvial gravel at and in the area of the Grasdrif deposit along the lower Orange River; - Global's management team consists of seasoned experienced diamond industry professionals; - Global will be applying for the listing of its shares on more senior stock exchanges that should improve liquidity and market support from the brokerage community. In closing I would like to thank you, our shareholders for your support and commitment to our company and a special word of thanks to the members of our management team for the hard work under trying circumstances that set the stage for what may be an exciting 1998. Please feel free to contact Eugene Brill, VP Investor Relations, for any further information. Sincerely, Johann de Villiers Chairman & CEO