China Diamond Corp. Delineates Potentially Diamondiferous Kimberlite Pipe at the 703 Project.

LONDON -- China Diamond Corp. (TSX VENTURE:CDC)

Mr. Michael Michaud, President of China Diamond Corp, (the "Company") is pleased to announce the results of a recent resistivity survey that confirms the presence of a buried pipe on the 703 Property.

The recent resistivity survey, designed to identify and better delineate the geometry of a buried kimberlite pipe, was completed over an area of approximately two square kilometers, hereafter referred to as the Dajingtou Pipe Zone. Previously in 2000, geological mapping and stream sediment sampling by the Company lead to the discovery of this diamondiferous zone. In total, 1,437 chromium-rich chromites, several garnets and eight diamonds were recovered downstream from this anomalous zone.

Follow-up mineral chemistry of the chromites has shown the composition to be congruent to chromites from the Company's neighbouring 701 Changma Mine kimberlites, where annual diamond production totals approximately 90,000 carats. In addition, mineral grain abrasion analysis completed by the Company's joint venture partner on the 703 Project, the 7th Geological Brigade, indicates that the majority of chromites recovered have experienced little or no impact erosion, suggesting the chromite grains are proximal to their original source. Further, the distribution pattern of the recovered diamonds and indicator minerals proximal to the Dajingtou pipe zone is similar to that defined for the Company's two other projects, namely the 701 Mine and 702 Project.

In order to confirm the diamondiferous potential of the Dajingtou pipe zone, which is a highly brecciated zone with numerous country rock fragments, the Company initiated a resisitivity survey to better define the geometry of a buried pipe to a depth of approximately 200 metres. The results of this survey have confirmed the presence and geometry of what the Company believes to be a kimberlite pipe. It is theorized that an earlier intruded kimberlite pipe has been subsequently disrupted by an explosive volcanic breccia that may have followed the same deep-seated geological structure that permitted the kimberlite pipe to reach surface (as illustrated in the following idealized sketch).

To view the illustrated idealized sketch included in this press release please click on the following link:

http://www2.cdn-news.com/database/fax/2000/cdc1130.pdf

Given the results of the recent survey combined with the results of previous exploration, the Company is confident that the Dajingtou pipe zone is the source of the recovered diamonds and indicator minerals. As such, the Company has commissioned a core drilling and bulk sampling program to commence immediately.

In addition, the Company has initiated detailed exploration over several similar exploration targets elsewhere on the Dajingtou license area that is designed to identify any additional diamondiferous kimberlites.

"The Company is very excited of the prospect of locating the primary source of the diamonds previously recovered from surface exploration, particularly considering the potential synergies with the Company's nearby operations at the 701 Mine and the 702 Project" said Mr. Michaud. "These are indeed exciting times in China as it has been over 30 years since a kimberlite pipe has been discovered in the region. As such, we have full support from the local and scientific communities."

The exploration program in China is being carried out under the direct supervision of Michael Michaud, P. Geo., the Company's President who is a Qualified Person under National Instrument 43-101.

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."

The TSX Venture Exchange has in no way passed upon the merits of the contents and has neither approved nor disapproved of the content of this news release.

China Diamond Corporation (TSX VENTURE:CDC)