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Gold/Mining/Energy : Diamond Fields International Ltd. (DFI.T) -- Ignore unavailable to you. Want to Upgrade?

To: John Thomas who wrote (3)	2/23/1999 2:26:00 PM
From: John Thomas	Respond to of 141

To All diamondfields.com Diamond Fields International Ltd. announced it has sold a parcel of 4,450 carats in Antwerp for an average value of US$164/carat. "This price exceeded our expectations and indicates improved market confidence. The market for diamonds in the size and quality of stones found in our Namibian properties have partially rebounded after an estimated 20-25% decline in 1998," said Dan Johnson, President of DFI. The diamonds sold were those recovered from Phase 1 of the Company's Advanced Sampling Program conducted by De Beers Marine in November 1998 on DFI's offshore concession in Namibia near the town of Luderitz. The program yielded an average sample grade of 1.3 carats per square meter from 67 sample sites representing a five- fold increase above the previously estimated grade for the entire feature. "Based on the average sample grades for the area sampled, the diamond sales values, and the thin sediment cover associated with the overall feature, we believe the Marshall Fork feature represents the most potentially profitable sea diamond deposit known. Our Phase 2 program is expected to validate this belief," said Mr. Johnson. The Company is proceeding with the US$1.5 million Phase 2 program. The program plan has been modified to grid line sample the balance of the 1.3 million square meter Marshall Fork feature. Proceeds from diamond recoveries from sampling and test-mining activities are expected to substantially offset the cost of the program. Sampling in Phase 1 was limited to an area where the water depth was in excess of 65 meters due to restrictions of the sample recovery system on De Beers Marine's sampling vessel, the mv Coral Sea. The Coral Sea normally operates in water depths of 120-180 meters when conducting evaluation sampling under contract to Namdeb in Namibian waters northwest of the mouth of the Orange River. De Beers Marine is planning to modify the sampling discharge system on the vessel in the next several months to allow operations to be conducted in water depths as shallow as 40 to 45 meters. With the modifications the vessel will be able to work in the balance of the feature. DFI and De Beers Marine are currently finalizing contract negotiations for Phase 2 sampling services to begin once the vessel has been modified sometime around mid-year. Immediately thereafter, a feasibility study for an initial mining operation would be undertaken. The Company also plans to conduct further sampling on the concession. Phase 3 of the program is designed to both upgrade and expand the overall resource by resampling two known features with proven techniques and systematically examining two very large features not previously sampled. Overall the goals for the program are to outline sufficient resources to support a multi-faceted, long life operation capable of producing several hundred thousand carats per year. Diamond Fields International is a diamond mining and exploration company. The Company has a current cash position of over $4 million and its shares began trading on the TSE and VSE under the symbol "DFI" in January 1999. The Company continues to be engaged in discussions with various parties for the purposes of acquiring additional financing, exploration opportunities, seeking suitable joint venture partners, and potential merger/acquisition candidates. John