Canabrava Diamond and Paramount Ventures Announce Progress Report, Ontario Joint Venture.

Business Editors

VANCOUVER, B.C.--(BUSINESS WIRE)--March 31, 2000

Canabrava Diamond Corporation (CDNX:CNB.) and Paramount Ventures & Finance Inc. (CDNX:PVF.) announce that the winter exploration program on their Ontario Joint Venture with Kennecott Canada Exploration Inc. has been completed. The Ontario Joint Venture includes Canabrava's 100% owned Whitefish Lake Project, as well as the KAP and Rocky Island Lake Projects which are owned 50% by Canabrava and 50% by Paramount. These projects are located northeast of Wawa, Ontario and include more than 158,000 hectares of staked and leased land.

Kennecott has advised the partners that the winter exploration program that commenced in mid-January was cut short by the early onset of spring weather conditions, which resulted in the loss of lake ice in early March. Ground geophysical surveys (both magnetic and electromagnetic) were completed over 21 targets on the Whitefish Lake Property and 2 targets on the KAP Central claims. Only five targets were drill tested before the program had to be abandoned due to poor ice conditions. No new kimberlites were discovered with the limited drilling completed, but a number of interesting intersections of ultramafic lamprophyre were encountered. Petrologic studies will be completed on these rocks in order to fingerprint their indicator mineral signature and determine whether they have any diamond potential. A number of good quality targets remain to be drill tested including some that occur at the head of a large indicator mineral plume. These targets are located under lakes and cannot be easily drill tested from the shore.

Kennecott intends to continue the ground geophysical program on the KAP and Rocky Island Lake Properties later in the spring after the thaw is completed and bush roads become accessible. Intensive follow-up indicator mineral sampling and prospecting will also be initiated after the results from the 1999 program are evaluated. Laboratory results from the 1999 program are expected by the end of April.

Kennecott has the option to earn a 60% interest in the Ontario Joint Venture by spending $25 million within seven years, or by advancing any one of the Projects to a production decision, whichever occurs first. Kennecott, as operator, must spend $1.5 million before December 10, 2000.

Canabrava Diamond Corporation is actively exploring for diamonds in Brazil and Canada both independently and through major joint ventures with Kennecott Canada Exploration Inc., SouthernEra Resources Limited, Paramount Ventures and Finance Inc. and Navigator Exploration Corp. The Company is 52.7% owned by Southwestern Gold Corporation (SWG-T).

Paramount Ventures and Finance Inc. is a junior exploration company with diamond projects located in Brazil and Canada.

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

Rory O. Moore, President, Canabrava Diamond Corporation James Owen, Director, Paramount Ventures and Finance Inc.