Botswana - Option Agreement to Purchase Mineral Rights on Bellsbank Kimberlite Pipe, Kimberley, South Africa.

VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--Aug. 6, 1996-- Botswana Diamondfields Inc. (VSE:BWD) is pleased to announce that it has negotiated an option agreement to acquire a 100 percent interest in the mineral rights over the Bellsbank kimberlite pipe, located approximately 110 km north west of Kimberley, in the Northern Cape Province of South Africa.

The Bellsbank pipe was discovered in the early 1980's, by De Beers who reported the presence of two small, closely spaced kimberlite bodies overlain by 30 metres of calcrete. Although a ground magnetic survey indicated the probability of there being a single kimberlite pipe, approximately 1 hectare in area, no additional drilling between these two pipes or exploration of the property was undertaken by De Beers either at that time or since.

The grade reported by De Beers from only 55 tonnes of drill chippings is 8.2 carats per hundred tonnes and an independent study reported that the diamond potential, evaluated from mineral chemistry, may be as high as 30 carats per hundred tonnes.

The quality of the diamonds was not reported but the kimberlite is similar to that of the Bellsbank and Messina mines where about 90 percent gem quality is recovered with values in excess of US$200 per carat. Of the total 3.295 carats recovered from the drill chippings, one stone was 1.06 carats.

The Bellsbank pipe has never been mined and it is estimated that in situ kimberlite for a 1 ha pipe to 300m depth, may exceed 4 million tonnes. It is situated some 5 km north west of the Bellsbank (Rex Diamond Mining Corporation) and Messina (Messina Investments) mines, which are located on the Main and Bobbejaan fissures respectively. These mines are currently producing from depths in excess of 600m.

The purchase price for exercising the option will be R1.1 million (US$0.25 million). The option period is for 18 months ending in January, 1998.

A two phase geological evaluation program will commence soon. Phase I will repeat a detailed ground magnetic survey as a precursor to, and to provide a control for, a percussion drilling program to outline the full extent of the kimberlite body. Phase II will involve the treatment of a bulk sample of the kimberlite to establish the grade and quality of the recovered diamonds.

The close proximity of the Bellsbank pipe to the recently announced Water fissure (News Release July 19, 1996), will enable the company to undertake efficient and cost effective exploration programs at both locations concurrently.

This new acquisition represents a further step in the establishment of Botswana Diamondfields Inc. as an international mining company.

Botswana Diamondfields' financial reserves of some C$15 million enables the company to continue evaluation of other mining operations to complement existing operations in Botswana and South Africa. While the identification and acquisition of select kimberlites and undervalued production situations will continue, the company's main focus remains the discovery of a major resource through intensive exploration. -0-

NOTE: Location map available from the Company at the phone number listed above. -0-

NOTE TO EDITORS: The Vancouver Stock Exchange has neither approved nor disapproved the information contained herein.

CONTACT: Botswana Diamondfields Inc.

John M. Darch, 604/681-8003; 604/662-3180 (Fax)

1-800-444-9284 (US Toll Free)