Canabrava To Drill Diamondiferous Kimberlites.

Business Editors

VANCOUVER, B.C.--(BUSINESS WIRE)--Feb. 17, 2000

Canabrava Diam(CDNX:CNB) Canabrava Diamond Corporation (CNB-CNDX) is pleased to announce that it has secured an exciting new diamond project in the eastern Superior Craton of Ontario and Quebec. The Frontenac Project comprises approximately 1,800 hectares of mining claims in 12 properties within an area of interest of 4,500 square kilometres.

Each of the properties acquired covers either known kimberlite bodies or well-defined targets based on indicator mineral and/or geophysical anomalies. A number of geophysical targets have significant size potential and the indicator mineral suites defining some targets contain both G10 garnets as well as high interest eclogitic garnets. One of the properties encloses a tight cluster of three kimberlite pipes that have not been adequately tested. A 22 kilogram sample of drill core from one of these pipes contained 22 microdiamonds according to published reports. A second cluster of anomalies lies immediately adjacent to three kimberlite pipes located on competitor ground, two of which have been reported to contain both micro- and macrodiamonds.

Exploration on the Frontenac Project will proceed immediately. Five targets are drill ready and will be tested as soon as a drill rig can be mobilized. In addition to drilling these targets, the program will focus on verifying previous microdiamond results on known pipes. Ground geophysical surveys will also be completed over a number of airborne targets in preparation for additional drilling. Further sampling and exploration work will be carried out within the project's area of influence immediately after the spring thaw.

The properties were acquired from a group of prospectors in exchange for a cash payment of $21,000 and the issuance 150,000 common shares from the Company's capital stock. No further obligations are due on the properties until a positive feasibility study is achieved, at which time the vendors will receive further compensation. The vendors will retain a 3% net smelter royalty on production from the first commercial mine, with Canabrava having an option to purchase this royalty for a one-time cash payment of $3 million. The agreement is subject to regulatory approvals.

The Frontenac Project is the third generative project initiated by Canabrava on the Superior Craton. On the other projects, Kennecott has recently commenced a winter exploration program focused on drill testing high priority targets on the Whitefish Lake (100% Canabrava) and KAP South (50% Canabrava, 50% Paramount Ventures and Finance Inc.) Properties within the Ontario Joint Venture. Ground acquisition on the Severn Joint Venture with Navigator Exploration Inc. is nearing completion. Further updates on these projects will be provided within the next few weeks.

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 Inc. The Company is 54.2% owned by Southwestern Gold Corporation (SWG-T).

Rory O. Moore, President Canabrava Diamond Corporation

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