Botswana Diamondfields Option Agreement to Purchase Mineral Rights on Significant Kimberlite Fissure in South Africa.

VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--July 19, 1996-- Botswana Diamondfields Inc. (VSE:BWD) is pleased to announce that it has negotiated two option agreements to acquire a 100 percent interest in the mineral rights over the well-known "Water" fissure, located approximately 100 km north west of Kimberley, in the Northern Cape Province of South Africa.

The kimberlite on the "Water" fissure outcrops at surface where a consistent 1 metre thickness extends over a 2 km length and in one section the thickness exceeds 5 metres. This fissure has never been mined and it is estimated that the in-situ kimberlite, to 600 metre depth, may exceed 3 million tonnes.

The grade reported from a 2,000 tonne bulk sample, is 10 carats per hundred tonnes. This is believed to be very conservative because a coarse (16mm) crushing size was employed. The reported quality of the recovered diamonds is about 90 percent gemstones with an estimated value of US$250/carat. The probability of recovering large stones (>10ct) is good.

The "Water" fissure is situated between, and parallel to, the Main and Bobbejaan fissures, some 500 metres and 1,500 metres from each respectively. The Bellsbank (Rex Diamond Mining Corporation) and Messina mines, which are located on the Main and Bobbejaan fissures respectively, are currently producing from depths exceeding 600 metres.

The purchase price for exercising both options will be in the range R2.5 million - R4.7 million (US$0.60 million - US$1.0 million), depending on the grade to be established during the option period. The option period is for 18 months ending December 18, 1997.

Prospecting permits have been granted and a detailed evaluation programme will commence soon. Phase I will involve drilling several cored angle drill holes along the strike of the fissure to confirm continuity and thickness of the kimberlite body to a depth of at least 100 metres. Phase II requires the establishment of a pan plant to treat at least 10,000 tonnes of kimberlite from samples spread along the 2km length of the fissure.

This further acquisition represents another step in the expansion policy of Botswana Diamondfields Inc. outside Botswana. Other exploration targets, options on known kimberlites and production situations are being carefully evaluated and will be pursued if determined to be beneficial to the evolution and development of the Company. The discovery of a major resource, through extensive exploration, remains Botswana Diamondfields' main objective and the pursuit of other acquisitions is only intended to complement, expand and diversify the activities of the Company in the creation of a strong international mining company. Further activities outside Botswana will not, in any way, detract from the extensive on-going exploration within the country, to which the company remains fully committed.

The corporate philosophy of Botswana Diamondfields Inc. is to maintain strong financial reserves to support an aggressive development philosophy. Following the recent acquisition of the Rovic Mine and a private placement of C$12 million, Botswana Diamondfields Inc. will still have some C$15 million in the treasury and the company will remain debt-free. A projected annual revenue stream of C$2.2 million will flow from the Rovic Mine starting from mid-1997. This strong financial base makes it possible for the company to vigorously pursue other exploration and undervalued production opportunities. -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 (U.S.Toll Free)