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

To: Eugene Brill who wrote (76)	1/4/1999 10:07:00 AM
From: Eugene Brill	Read Replies (2) \| Respond to of 88

CLOSING OF US$6 MILLION PRODUCTION FINANCING ANNOUNCED. LA JOLLA, Calif. - Global Diamond Resources, Inc. ("Global") is pleased to announce that two large Middle Eastern investors with multi-national operations have closed a US$6,000,000 equity investment in Global. Each of the investors has each acquired a 17% equity stake (comprising of 8,571,429 shares of common stock) in Global for an amount of US$3,000,000. These shares were issued pursuant to Section 4(2) of the Securities Act of 1933 and thus, in accordance with Rule 144, may not be sold by these investors in the public market (absent registration) for one year from their issuance. Immediately following the closing, Global added two nominees of each investor to its board of directors. The capital invested in Global will enable Global to expand diamond production facilities at its estimated 81 million tonne Grasdrif and at its estimated 38 million tonne Caerwinning alluvial deposits. During the third and fourth quarters of 1998, Global commissioned a diamond recovery plant at each of its two alluvial properties, each of which is capable of treating approximately 400,000 tonnes of gravel per year. The additional investment should allow Global to more than double its mining capacity during 1999, which should have a positive effect on its revenues and cash flow, as well as cost benefits associated with economies of scale. 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. # # # # # # #