China Diamond Corp. Holds AGM.

LONDON -- China Diamond Corp. (TSX VENTURE:CDC) held its Annual General Meeting (the "Meeting") on Tuesday, December 7, 2004. The meeting was chaired by William J. Little with the Company's Chief Financial Officer and Corporate Secretary acting as Secretary of the meeting and the Company's corporate counsel, Christopher D. Farber, acting as scrutineer.

A total of 81 shareholders of the Company were present in person or by their proxy holder and these shareholders held a total of 48,892,596 shares of the issued and outstanding shares of the Company.

Shareholder decisions at the Meeting and decisions of the Board of Directors immediately following included the following:

ELECTION OF DIRECTORS

The following persons where elected to the Board of Directors:

- Hassan (Sam) Halbouni

- Philip N. Cassis

- Sylvio Cohen y Escaloni

- Michael Michaud

- Xie Datong

- George Laforme

Hassan (Sam) Halbouni is the Chairman of the Company and Board of Directors.

The Shareholders fixed the number of directors to six. The directors were elected for the ensuing year until the next annual meeting of the shareholders or until such time as they resign, whichever comes first.

2004 STOCK OPTION PLAN

A majority of shareholders also approved the proposed stock option plan (the "2004 Plan") of the Company which provides for the replacement of the Company's 2003 stock option plan. The 2004 Plan allows the Company to have, at any one time, up to 10% of its issued and outstanding shares reserved for issuance as stock options to directors, consultants, employees and management company employees. As the limit on the 2004 Plan is 10% no vesting of incentive stock options is required although the 2004 Plan provides that the Directors may negotiate vesting provisions with option holders.

The Board of Directors, in a meeting following the AGM, approved the following guidelines for limiting the granting of options to Directors of the Company in lieu of cash consideration being paid for their services:

Directors are, in the future, to be granted no more than a total of 3,000,000 incentive stock options each year with each directors' options being the total of:

- For serving as a Director, 250,000 options;

- For each joint venture board or subsidiary board on which a Director sits: 100,000 options;

- For each Board of Directors' Committee on which a Director sits, 50,000 options; and

- If a Director has been a director for three years then on the third year anniversary date the Director will be granted 100,000 options.

These options will be priced at the market price of the stock at the time options are granted.

AUDIT COMMITTEE AND AUDITORS

At a meeting of the Directors after the AGM, the following were appointed to the Company's Audit Committee:

- Philip N. Cassis

- Micheal Michaud

- George Laforme

Dale Matheson Carr-Hilton Labonte, Chartered Accountants, were appointed as auditors of the Company.

MANAGEMENT REPORT

Following the formal Meeting, the President of the Company, Michael Michaud, reported to shareholders on the progress of the Company in the last year and summarized the status of the Company's producing and exploration stage properties.

At the 701 Mine, record monthly production has been achieved in the last year, while the Company continues to strive towards improved efficiencies and safety with lower operating costs for 2005. Further, the Company is currently assessing the potential benefits of additional capital development to update technology in the processing plant to increase diamond production and maximize diamond value.

At the 702 Diamond Project, a thorough analysis of the geological model by the Company has identified the need to collect a bulk sample in order to recover a sufficiently sized parcel of diamonds for valuation. This valuation is essential in determining the most viable processing and mining scenario for future development of the project.

At the 703 Diamond Project, a recently completed geophysical survey has identified what the Company believes to be the bedrock source of the diamonds recovered during previous exploration campaigns (see press release dated November 30, 2004). The Company is currently finalizing the plans for core drilling and surface bulk sampling of this potentially diamondiferous body.

At the Huixian copper-gold project, the Company has compiled the exploration data and is finalizing an exploration program in order to assess, not only the gold-copper mineralization at the past producing Huixian Mine, but to better delineate the mineralization that extends over a 10km strike length where previous exploration has returned numerous anomalous gold-copper assays from geologic mapping and sampling.

"The Company is very pleased and excited with the progress made on all of the projects and we expect 2005 to be even more exciting, particularly given our recent discovery at the 703 project" says Sam Halbouni.

In order to provide an opportunity to shareholders not present at the Meeting to become more informed of the Company's activities in China, the Company will be hosting a Conference Call on Monday December 20, 2004 at 4:00pm (EST). All shareholders and potential investors are invited to join in on the call. The Call will be a summary of the presentation given by the Company's President at the Meeting in which a summary of progress to date and future plans for each property were discussed. There will also be an opportunity for participants to ask questions.

In order to participate in the conference call, shareholders and other interested persons should call: [phone] at the specified time. A powerpoint(R) presentation will be posted on the Company's website several days prior to the Conference Call.

ABOUT CHINA DIAMOND CORP.

Headquartered in London, Ontario, China Diamond Corp. (www.chinadiamondcorp.com) is a 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)