Canabrava Diamond Corporation and Paramount Ventures and Finance Inc.: Drilling Set to Commence on High Priority Kimberlite Targets in Ontario.

Business Editors

VANCOUVER, B.C.--(BUSINESS WIRE)--Nov. 22, 2001

Canabrava Diamond Corporation (CDNX:CNB.) and Paramount Ventures & Finance Inc. (CDNX:PVF.) announce that drilling is set to commence on their diamond exploration projects in Ontario.

Drilling on the Groundhog Project is expected to continue through December and into the first quarter of 2002. Upon completion of the first phase Groundhog program, it is expected that the drill rig will be moved to the Ontario JV with Kennecott in order to test a series of additional priority targets. Updates on the Groundhog and Ontario JV projects are provided below.

Groundhog Project with Paramount

An aggressive field program was initiated on the Groundhog Project on July 1st and completed on November 5th. The focus of the program was to follow-up on a number of discrete kimberlite indicator mineral anomalies located within an area of approximately 600 square kilometers. Some of the best garnets recovered by Canabrava in Ontario to date are from this target area.

A tightly defined sampling program has been completed with 250 till samples collected along a number of east west lines positioned up-ice from previously identified anomalies. These samples are currently being processed for indicator minerals at an independent commercial laboratory in Ontario and results have been received for just under half of the samples to date. The balance will be completed by year-end. Based on microscope identification, significant kimberlite indicator mineral grains have been recovered and microprobe analyses are pending.

Processing and interpretation of the 10,952 line-kilometre airborne geophysical survey completed in early October has been finalized by Canabrava's geophysical consultant with over 60 targets of interest identified. Twenty of the best targets have been selected for immediate follow-up, and a program of line cutting and ground geophysical surveys is underway. A drill will be mobilized within the next week to commence testing confirmed targets.

As reported in the News Release of October 22nd, the Groundhog Project has emerged following the July 2001 amendment to the Kennecott Option Agreement. The Groundhog Project comprises the area located between the new and old areas of interest on the Kennecott Option Agreement, and includes most of the areas covered by the former KAP Project and parts of the former Rocky Island Lake Project area. Canabrava is the operator of the Groundhog Project. The Project is held 50:50 between Canabrava and Paramount, but Paramount's interest is currently being reduced according to a straight-line dilution formula. Kennecott retains the right to a 1.5% Gross Overriding Royalty, capped at $10 million, on any discovery made on the Project prior to June 30, 2003.

Ontario Joint Venture with Paramount and Kennecott

The summer-fall field program that commenced on July 1st was successfully completed on November 5th. Major objectives of the program were achieved with the discovery of additional diamond-bearing kimberlitic boulder trains, ground follow-up on numerous geophysical anomalies identified from the airborne geophysical survey completed in August and the acquisition of 118 strategically located till samples. All samples have been submitted to Kennecott's Thunder Bay laboratory for initial processing, after which the mineral concentrates will be picked for kimberlite indicator minerals and microprobe analysed at a commercial laboratory in South Africa. Kennecott has undertaken to have all samples processed by year-end and the final processing is scheduled to be completed by the end of January 2002.

A 10,646 line-kilometre airborne geophysical survey covering three large blocks has been initiated, and flying is expected to be completed by year-end. The location of the survey blocks was based on kimberlitic indicator mineral anomalies as well as the summer's prospecting results. Canabrava's geophysical consultant has completed the processing and interpretation of the initial 5,366 line kilometre airborne survey completed in August, and a number of targets have been identified for follow-up.

An option agreement has recently been completed with MacGillivary Holdings Ltd. (see News Release of November 12th). The option covers a discrete geophysical target identified from the Canabrava airborne survey within an area currently undergoing intense exploration by the joint venture. Ground geophysical surveys will be conducted over this and other high priority targets identified from the survey during December and January, followed by drilling in February 2002 when ice conditions are suitable for testing lake targets.

Canabrava holds a 75% interest in the Ontario JV and Paramount owns the remaining 25%. Kennecott has the right to earn a 60% interest in the Project by spending $25 million before June 2006 or by making a production decision, whichever occurs first.

Canabrava Diamond Corporation is actively exploring for diamonds in Brazil and Canada both independently and through major joint ventures with Kennecott Canada Exploration Inc., Navigator Exploration Corp., and Paramount Ventures and Finance Inc. The Company is 45.6% owned by Southwestern Resources Corp. (SWG-T).

Paramount Ventures and Finance Inc. is an exploration company with diamond projects in Canada.

The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.