Canabrava Diamond Corporation Announces Progress Report on Corporate Activities.

VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--April 28, 1999--

Canabrava (VSE:CNB) Canabrava Diamond Corporation (CNB-V) is pleased to provide the following update on its exploration projects in Canada and Brazil.

Brazil Canabrava Joint Venture

Management is delighted with the recent signing of a major letter agreement with SouthernEra Resources Ltd. Under the terms of the agreement, SouthernEra can earn a 50 percent interest in the Project by spending a total of US$20 million over 7 years, with a firm commitment of US$1.5 million in the first 2 years. The agreement provides SouthernEra with a number of options including (a) a facility to reduce its initial earn in commitment, (b) the right to explore and develop the alluvial resources on the Project, and (c) the ability to ultimately increase its interest in specific properties to 70 percent (see News Release dated April 6, 1999 for details).

A comprehensive technical review of the Project was completed by Canabrava in December, 1998. This process included the compilation of an extensive geochemical database, as well as a number of field trips to the Project area and surrounding region to investigate and sample key target sites and drainages. Fieldwork included selected sampling of various known diamondiferous kimberlite/lamproite pipes to establish base-line geochemical criteria. Several new pipes were discovered during this program, and some of the best indicator mineral chemistry to date has been identified. Confirmation of the success of this initiative has been the attraction of a new partner with the credentials of SouthernEra to the Project.

A technical team consisting of both SouthernEra and Canabrava representatives is currently in Brazil designing a work program and budget for 1999. Several priority areas and targets have been identified and these, together with addressing a large backlog of samples in the laboratory, will be the main focus of the program. The process of interviewing candidates for key positions has commenced with a view to recommissioning the on-site laboratory and initiating an aggressive exploration program within the next month.

Rio do Sono Joint Venture

A new Joint Venture to develop the alluvial diamond resources on the Rio do Sono Project has been signed with Paramount Ventures and Finance Inc. Under the terms of the agreement, Paramount will spend US$1 million to earn a 50 percent interest in the Project. An experienced alluvial miner, Baines and Company has been hired as Project Manager, with Canabrava as operator (for further details see News Release dated March 18,1999).

Significant progress has been made on the Project over the past month. Numerous target sites within the active river channel have been identified for sampling, and additional exploration is being conducted using ground penetrating radar and waterborne geophysical techniques. Equipment procurement and construction is 75 percent complete, and bulk sampling operations and the initial recovery of diamonds are scheduled to commence within the next month. A mining plan will be developed and the operation will be stepped up to full commercial production as soon as possible.

Macapa/North Bahia Joint Venture

Results from the sampling program completed on the North Bahia Project last year have been received and evaluated. A full suite of indicator minerals, including pyrope garnet, chrome diopside, chromite and picro-ilmenite, were recovered from the Redondao kimberlite and subjected to microprobe analysis. The geochemical characteristics of these minerals are not consistent with a high diamond potential, and consequently, no further work is planned on this project.

On the basis of a reconnaissance trip to the Macapa Project in December 1998, it was decided that the Rio do Sono Project offered a significantly better opportunity to deliver sent to date.

Canada Ontario Joint Venture

The recent signing of an Option/Joint Venture Letter A KAP and Rocky Island Lake Projects (50 percentt in the Project by spending C$25 million withi26 samples, KAP Project - 969 and Rocky Island L sampling over claims blocks at a density of onation (Rocky Island Lake Project).

All results have been received and evaluated, and the Company is pleased to report that the above objectives have been achieved high interest indicator minerals have been rehave been confirmed to show a high potential fdiscovered on the Whitefish Lake Project. One iion based on grain morphologies that the majority of indicator minerals recovered to date have been derived from proximal source rocks.

In addition to several hunrnets were recovered from the KAP and Rocky Ises. Numerous chromites with highly favourableional claims have been staked to secure the bely May for mobilization. The focus of the program will be to follow-up on the highest priority areas. Kennecott geophysicists are currently evaluating the full airborne dataset and, several high potential anomalies have already been identified. Details of a more extensive summer program will be finalised once the spring program is under98, the long term debt with Southwestern Gold al and funding on the major projects secured threrm, the Rio do Sono alluvial project with Paramount will bring cash flow to both companies.

Canabrava Diamond Corporation is actively exploring for diamonds in Brazil and Canada and looking at other opportunities worldwide. The Company is 59.6 percent owned by Southwestern Gold Corporation (SWG-T).

Rory O. Moore, President

NOTE TO EDITORS: The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.