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DIAMOND FIELDS RESOURCES INC. TO ACQUIRE 100 PERCENT OF LUDERITZ DIAMOND CONCESSION IN NAMIBIA

 VANCOUVER, British Columbia, June 1 /PRNewswire/ -- Diamond Fields Resources Inc. (Vancouver: DFR) (the "company") has agreed to acquire 100 percent of Angra Pequena Diamond Co. (Pty.) Ltd. ("Angra"), which owns 100 percent of Namibian West Coast Diamond Co. (Pty.) Ltd. ("NWCDC"). On April 30, 1993, the company previously announced that it had agreed to acquire 60 percent of Angra and, pursuant to the latest agreement, it has agreed to acquire the remaining 40 percent of Angra. The consideration for the full 100 percent interest is $3,333,333 U.S., and 366,666 common shares of the company.
 NWCDC owns the Luderitz Sea Diamond Concession which comprises 640 square kilometers along the coast of the Nation of Namibia, located in southwest Africa. The concession consists of a mining lease (grant No. M46/3/32) and a long-term prospecting lease (grant No. M46/3/1607). The concession stretches north from Diaz Point in the south to Hottentots Point in the north and from the low water mark seawards 12 kilometers.
 NWCDC's concession is adjacent to De Beers' concessions in three directions. To the East is the famous "Sperrgebiedt" area, otherside known as the "Forbidden Zone," which has produced more than 50 million carats of diamonds. To the North is a De Beers concession, on which the late Sam Collins made his famous Hottentots Bay discovery, and to the South adjoins De Beers sea concessions, just north of De Beers' newly commissioned Elizabeth Bay Mine with an estimated 2,500,000 carats in proven reserves unrecovered from previously mined gravels.
 It is estimated that at least 1.5 billion carats of diamonds have been eroded from kimberlites and subsequently deposited along the southern African west coast and continental shelf. Moreover, it appears likely that, given the sea-level history during the time that the diamonds were being transported to the sea, that up to 90 percent of these gems are now contained in deposits beneath sea level. Interest in submarine diamondiferous deposits first occurred in 1960, with a discovery by Sam Collins, an American with marine engineering experience. By 1964, Collins' Marine Diamond Corp. (MDC) had begun production from the stretch of coast north of the Orange River and in Luderitz Bay. MDC's fleet subsequently expanded to the extent that three barges and several other vessels were operating continuously in Chameis Bay and Hottentots Bay. De Beers then acquired MDC from Collins.
 The Luderitz sea diamond concession lies across a diamondiferous marine transport path and to date approximately 35,000 carats of exceptional quality (95 percent gem) diamonds have been recovered by NWCDC from the concession while it was engaged in exploration and bulk sampling/mining. The last sale of diamonds in March 1993 averaged $170 U.S. per carat. The reason for this very selective quality lies in the fact that the diamonds were originally eroded from kimberlite pipes that are distant from the coast and only the very best quality diamonds survived intact along this extensive transport route. It has now been proven that the "Sperrgebiedt" area, which consists of diamondiferous ancient marine terraces, extends into the sea, and the largest area of the "Sperrgebiedt" is submerged offshore.
 The subsurface break in the reef between Marshall Rock and Diaz Point, presumed to be the exit point for the paleo Koichab River channel, is approximately 3 km wide at 80 m below sea level. This is indicative of a substantial river channel, comparable to that of the Orange River. The results of the geophysical survey in May of this year show clearly the channel banks in water depths of 30 m to 40 m.
 Extensively gullied areas within the concession containing diamonderous deposits are known from localities south of Daggers Rocks, from the stretch of coast between Rocky Point and Danger Point and from the coast north of Gallovidia Reef. Gullies and potholes create ideal trapsites for the diamonds that are entrained in the littoral drift that is the most prevalent sediment transport mechanism along the west coast. These areas are being mined successfully on the Luderitz concession by small scale contract miners.
 Robbrecht De Decker, M.Sc. (Marine Geology) (cum laude), University of Cape Town has prepared a geological report on the Luderitz Sea Concession for the company. De Decker, an internationally recognized marine geologist, is a published authority on the diamondiferous deposits located in the sea on the south- western coast of Africa. In 1989, De Decker left his position as assistant director in charge of the Marine Geoscience section of the South African Geological Survey in Cape Town to become a partner in Marine & Coastal Geo-Consultants of Cape Town. In addition to his work with the geological survey on ocean diamonds, he has had appointments from most of the marine diamond companies and concession holders on the Cape and the Namibian west coast since establishing his consultancy.
 The Marine & Coastal Geo-consultants' Report, prepared by De Decker, has indicated the presence of massive diamondiferous gravel deposits in NWCDC's concession. This has also been confirmed by a recent sea survey by the authoritative CSIR (Council and Scientific Institute of Research) the South African government sponsored research organization, which has just completed running 300 km of survey lines on the concession. Their completed report is expected within 30 days and will form the basis for further survey work and mining operations. A copy of De Decker's report will be available for viewing at the registered and records office of the company, 2200 - 885 West Georgia St., Vancouver, during normal business hours.
 De Decker's report delineates the economic potential of the concession as well as the probable ore reserves for the concession using estimated volumetric calculations of gravel deposits accessible for economic exploitation with current technology. Bulk sampling/ mining was used to determine the grade of the reserves and geophysics was used to determine the volume. Prospecting and mining in the concession over the last five years was mostly done by means of shore based diver operated pumping techniques.
 It is estimated that there are a total of 18.47 million carats of probable (indicated) reserves in the concession based on geophysical, sampling and geological data and that possible reserves are several fold higher.
 A total of 57 bulk samples were collected from the Boat Bay Area, 14 of which were from prospecting vessels in relative deep water (10-20 meters) up to 1 km from the shore. The probable ore reserve in the Boat Bay area amounts to 6,890,000 carats.
 A total of 109 prospecting samples have been recovered from the Ichabo Deposit, using shore based divers. The probable ore reserve in this deposit amounts to 700,000 carats.
 Ten bulk samples were recovered from the Daggers Rock Deposit by prospecting vessels, and an additional 112 samples were collected by the shore-based divers. The probable ore reserve for this deposit amounts to 1,680,000 carats.
 In addition the report delineates the estimated probable ore reserves for the shore line deposits and the wave cut terraces amounting to 9,200,000 carats.
 In other news, the company expects to complete the acquisition of a ship which will be equipped with state of the art technology for sea diamond reserve delineation and diamond mining.
 With De Beers continuing to increase its large fleet of diamond mining ships, the company believes that sea diamond mining off the southwest coast of Africa will increasingly become the dominant producer of gem diamonds in the world. De Beers and NWCDC are currently the only producers of diamonds in Namibia.
 Diamond Fields Resources Inc. intends to expand the operations of its wholly owned subsidiary NWCDC to become a major force in the sea diamond mining industry.
 -0- 6/1/93 R
 /CONTACT: Louise Read of Diamond Fields Resources, 604-688-7166/
 (DFR.)


CO: Diamond Fields Resources Inc.; Angra Pequena Diamond Co. Ltd.;
 Namibian West Coast Diamond Co. Ltd. ST: British Columbia IN: MNG SU: TNM


BP-JB -- LA013 -- 4316 06/02/93 09:06 EDT
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Date:Jun 2, 1993
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