Botswana Diamondfields Reports on Phase I Drilling of the Water Fissure.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Oct. 15, 1996--BOTSWANA DIAMONDFIELDS (VSE:BWD.) -- Botswana Diamondfields Inc. is pleased to report that phase I of a two phase geological evaluation program of the Water fissure is proceeding on schedule.

A detailed surface mapping program has been completed and a geological map is being compiled. This work has confirmed a total of 2.25 km length of kimberlite fissure within the option areas.

The previously reported average width of one metre at surface has been confirmed over the length of the fissure, apart from the farthest northern portion, where the fissure narrows to less than one metre in places. A 300 metre long central section widens to over five metres and represents a potentially significant increase in the size of this resource.

A parallel fissure has been identified on the west side of the water fissure. It has been mapped over a length of approximately 900 metres with a width of up to 1.2 metres. Several other parallel to sub-parallel and discordant fissures have also been mapped within the option areas. Further evaluation of the parallel fissure will take place in due course.

The phase I drilling program to confirm the continuity and width of the water fissure to a depth of at least 100 metres below surface has commenced. The results of the first three holes are as follows: -0-

     Drilled width  True width   Surface width  Depth from
                                                 surface
WD1      2.29m         1.24m         1.17m         93m
WD2      1.08m         0.48m         0.50m        113m
WD3      3.60m         1.45m         1.45m       ~100m

WD2 is located in the narrow far north section.

In addition to the confirmation of kimberlite at depth this drilling program has confirmed the competent dolomite wallrock to the fissure continues to at least 100 metres depth which in a mining operation will reduce dilution.

A phase II bulk sample program to extract diamonds from 10,000 tonnes of kimberlite will follow the phase I drilling program. A modular DMS plant has been purchased from Benguela Concessions in Cape Town, and will be re-erected at the Water fissure. The bulk sampling will establish the diamond grade and value of the Water fissure kimberlite, and will indicate any variations along strike which may influence the location of a production plant. A 2,000 tonne sample extracted in the 1980s gave a grade of 10cpht, but with the present tertiary crusher setting being reduced to 6mm from the previous 16mm crushing size, the release of more diamonds is expected to significantly improve the grade. Quality is reported to be >90% gemstones with an average value of $250 per carat.

On the basis of a strike length of 2.0 km with a one metre width, and including a 300 metre section of 5 metre width, it is conceivable that resource tonnes to a depth of 600 metres (the current mining depth at adjacent mines, Bellsbank and Messina) may approach 4 million tonnes. At an improved grade of 15 cpht, a diamond resource of 600,000 carats can be expected with an in situ asset value of US$150 million.

Botswana Diamondfields Inc. has an option to acquire a 100% interest in the mineral rights over the Water fissure located 100 km northwest of Kimberley, Northern Cape Province, South Africa. The Water fissure is situated between and parallel to, the Main and Bobbejaan fissures on which the Bellsbank and Messina mines, respectively, are operating.

Cash reserves of some C$15 million are supporting Botswana Diamondfields evaluation of mining prospects to complement existing operations in South Africa and exploration in Botswana. While identification and acquisition of select kimberlites and undervalued production situations continues, the company remains committed to intensive exploration as the only means leading to the discovery of a major diamond resource. -0-

NOTE: Location map available from the company at the phone number listed below.

The Vancouver Stock Exchange has neither approved nor disapproved the information contained herein.

CONTACT: Botswana Diamondfields Inc.

John M. Darch, 604/681-8003 or 604/682-0566

604/662-3180 (FAX)

INTERNET: http://www.crewgroup.com

E-MAIL: [e-mail]