Botswana Diamondfields - Fully operational diamond mine in South Africa acquired - $6,000,000 private placement being arranged.

VANCOUVER, British Columbia--(BUSINESS WIRE)--April 16, 1996-- Botswana Diamondfields Inc. is pleased to announce that it has entered into an agreement to acquire a 100 percent interest in the Roberts Victor Diamond Mine (Rovic), which is located in the Orange Free State in South Africa, approximately 100 kilometres northeast of Kimberley.

It is anticipated that the acquisition will close prior to May 30, 1996.

This fully operational mine, which has approximately 220 employees, has recently completed a series of major upgrades in the underground layout with particular reference to surface and sub-vertical shafts, to improve efficiencies and productivity levels. The management team at the mine is well qualified and established and will remain in place.

An independent engineering review of the mine, its reserves and potential has established the feasibility and profitability of increasing production capacity from the current level of 10,000 tons per month to 15,000 tons per month by March, 1997, without significant capital expenditures.

The current mineable ore reserves are calculated at 2,000,000 tons, although continuity of ore to lower levels is predicted leading to a substantial reserve increase. The resource consists of several kimberlite pipes and blows located along a NE-SW trending fissure system extending over 800 metres. The capital and mining costs of the ongoing, underground development at the mine are enhanced by the presence of pipes and blows and minimal waste rock dilution.

The reported production grade over the past six years has averaged approximately 35 carats per hundred tons (cpht), of which some 14 cpht (40 percent) may be categorized as gem quality. The largest stone recorded is 42 carats and in recent years stones of 38 ct and 16.8 ct were sold for US$4,000/ct and US$8,000/ct respectively.

The purchase price of the 100 percent interest in the mine is US$4,300,000 and it is estimated that approximately US$1 million will be required for capital improvements to achieve production of 15,000 tons per month.

In accordance with the corporate philosophy of maintaining strong financial reserves, Botswana Diamondfields Inc. has arranged to substantially finance the aforementioned acquisition by a private placement of C$6,000,000, of which Crew Holdings Ltd., a private company controlled by John Darch and Gerald Wright, directors of Botswana Diamondfields Inc., shall subscribe for C$3,000,000. The balance will be arranged by David Williamson Associates, London, on a commission basis. The private placement will be a unit offering at $3.00, comprised of one share and one warrant exercisable over a period of 24 months, being $3.00 during the first year and $3.50 during the second year.

This acquisition, which is subject to regulatory approval, represents the initial step in the expansion policy of Botswana Diamondfields Inc. outside of Botswana. Other acquisition opportunities are currently being carefully evaluated and will be pursued if regarded as advantageous to the diversification and development of the company. Such acquisitions are intended to complement, expand and diversify the activities of Botswana Diamondfields Inc. internationally. They will not, in any way, detract from the extensive on-going exploration activities within Botswana, to which the company remains fully committed.

Through its wholly-owned local subsidiary, Botswana Diamondfields Inc. now holds exploration licenses in Botswana covering 14,120 square kilometres. The diamond prospecting program in Botswana has the prime objective of identifying another world class deposit in a country that already has the top two diamond producers of the world, namely Jwaneng and Orapa, the former renowned for the high gem qualities of the stones. With the extensive coverage of the Kalahari desert, exploration in Botswana is a long and arduous task. Despite this fact, history has demonstrated that the rewards in Botswana can be significant. The company has the necessary professional skills, financial resources and determination to vigorously pursue these ambitious programs.

Botswana Diamondfields Inc. has also granted a total of 120,000 stock options at a price of $3.00 per share. The options, subject to the approval of the Vancouver Stock Exchange, will expire in five years.

A more detailed statement on the current status of the various field activities in Botswana will be the subject of a further news release. -0-

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

CONTACT: Botswana Diamondfields Inc., Vancouver

John M. Darch, 604/681-8003

1-800-444-9284 (U.S. Toll Free)

604/662-3180 (Fax)