China Diamond Corp. Announces Planned Exploration and Capital Expenditures for Second Half of 2004.

LONDON -- China Diamond Corp. (TSX-V:CDC) is pleased to announce an update of its current operations.

Planned exploration program for 2004 for 702, 703 and Huixian mineral properties.

Over the past several months, the Company's technical team in China has compiled and reviewed the available data and has approved the following exploration programs for 2004. The initial exploration programs will focus on the Huixian Gold-Copper Project and the 703 Diamond Project in China, both proximal to the Company's producing 701 Changma Diamond Mine.

703 Property

The 703 Property is underlain by the Archean aged rocks of the Taishan Group in eastern China, adjacent to the north-south trending regional Tancheng-Lujiang (Tanlu) fault zone. The emplacement of the kimberlites in the region appears to be related to deep mantle structures that have been further controlled by near-surface crustal faults.

Since 1996, the Company has completed systematic geological examination of the 703 license area, including 1:10,000 scale geological mapping, stream sediment sampling and ground magnetic surveying that has lead to the discovery of several diamond anomalous zones, the most significant of these being Dajingtou, Xiaoquanzhuang and Beixiaoshan. Stream sediment sampling in these areas has recovered a total of 1,437 Cr-rich chromites and eight diamonds.

The Dajingtou occurrence consists of a pipe-like breccia zone that has been inferred from geophysical surveying and surface geologic mapping. Numerous indicator minerals and several diamonds have been recovered from stream sediment samples adjacent to this geophysical anomaly and rock samples collected from the breccia pipe. The Company is planning to complete closely-spaced stream sediment sampling and alluvial sampling to better define the indicator mineral and diamond dispersion train to better locate the kimerlite source rock. Once the anomaly is better defined, test pitting and limited core drilling will be completed to provide a preliminary assessment as to the extent of this potentially diamondiferous kimberlite.

At Beixiaoshan, a total of 239 Cr-rich chromite grains and 2 diamonds have been recovered from limited stream sediment sampling. Mineral chemistry of the chromites has shown the composition to be congruent to chromites from the neighbouring 701 Changma Mine kimberlites. In addition, mineral grain abrasion analysis indicates that the majority of chromites recovered have experienced little or no impact erosion, and as such, suggest the chromite grains are proximal to their original source. The Company is planning a program of closely-spaced stream sediment sampling and alluvial sampling in combination with a 1:2000 magnetic survey over a 12km2 area with the grid spacing of 20mx10m. Once the anomaly is better defined, follow-up test pitting and/or core drilling will be completed.

Similarly at Xiaoquanzhuang, numerous indicator minerals and several diamonds have been recovered from stream sediment samples. A similar program of magnetic surveying and closely-spaced stream sediment and alluvial sampling is planned.

The sample analysis fore the aforementioned program will be completed in China at the 7th Brigade's laboratory in Linyi. The Company has reviewed the analytical and QA/QC procedures, and modified as required, to meet industry standards in compliance with 43-101 regulations. Independent verification at an independent laboratory will be completed as required.

To date on the 703 Property, no bedrock sources for the recovered diamonds have yet been identified. Given this, and the fact that the diamonds and indicator minerals are considered to be from a local source, the Company believes the 703 Property to be highly prospective for hosting diamondiferous kimberlite deposits.

This initial phase exploration work, estimated to cost $250,000, will be completed by the 7th Geological Brigade under the direct supervision of Michael Michaud, the Company's qualified person for this project as defined by 43-101 regulations. Pending results we will be initiating the second phase of exploration later in 2004.

Huixian Copper-Gold Project

The Huixian Project covers an area of approximately 60km2 in Zouping County, Shandong Province. The Huixian Property is located with the Zouping Volcanic Belt, located in the center of the metalogenic belt of China's southeast coastal area. To date, numerous small and medium-sized deposits have been discovered and are currently being mined, making it one of the most prospective mineralized regions in Shandong Province. The majority of the gold-copper mineralization occurs within the Zouping Caldera, primarily along circular and radiating structures along the rim of the Caldera.

The Property is host to the past producing Huixian Gold-Copper Mine as well as a number of anomalous zones of gold-copper mineralization. Previously, several engineering studies have been commissioned to re-open the Huixian Mine at a larger production rate. However, in the Company's view, only after the exploration of all of the known anomalous zones on the property are defined can the most suitable mining and processing scenario be designed.

Exploration work carried out on the Zouping Caldera since the late 1950s has identified 29 exploration targets within Zouping County that have experienced only limited surface exploration. The Company considers the Property to be underexplored, and therefore, represents significant potential for hosting significant gold and/or copper mineralization.

At this stage, the Company has approved an initial exploration program designed to better understand geologically the known mineralization through continued data compilation and analysis and 1:10,000 geological mapping and sampling and surface trenching so as to be able to prepare a future program for delineation. Of late, the Company has compiled data from the Huixian Mine to better define the characteristics of the mineralization to aid in the assessment of other known and yet undiscovered mineralized zones. The Company envisions starting a more significant exploration program of core drilling and underground exploration in the latter part of 2004.

The planned exploration work, estimated to cost $100,000, will be completed by the Company's geologists under the supervision of Michael Michaud, the Company's qualified person for this project as defined by 43-101 regulations.

702 Diamond Property

The Company has approved the continuation of the current program of data compilation and three-dimensional modeling of the deposit. The objective of this work is to better define the various areas of the deposit that require additional data of diamond distribution and valuation for input into the planned feasibility study.

Planned capital expenditure during second half of 2004 for 701 Changma Diamond Mine.

A capital expenditure of $100,000 is planned at the Company's producing 701 Changma Diamond Mine. The funds will be used to complete several development items at the underground mining operations:

1. Completion of the 60m level main haulage drift. The drift is currently 60% complete.

2. Ventilation raise between the 60m level and the 110m level.

3. Ore and waste passes between the 60m level and the 110m level.

4. Advancement of the main decline past the 60m level.

Once this development work has been completed, the mine will be able to extract kimberlite below the 120m level and above the 70m level. Current mining operations are from the area below the 130m level and above the 120m level.

"The approval by the Board of Directors of the exploration and capital plans for 2004 are major milestones for the Company; these will further advance the implementation of growth strategies set by management," says Sam Halbouni, CEO. "We are ecstatic about entering into real exploration on these sites, and thrilled at the prospective outcomes that drill results will yield."

ABOUT CHINA DIAMOND CORP.

Headquartered in London, Ontario, China Diamond Corp. (www.chinadiamondcorp.com) is a junior resource company engaged in mining for diamonds and the exploration and advancement of diamond and gold prospects in China. The Company trades on the TSX Venture Exchange under the symbol "CDC."