| ||Tue May 23, 2006|
Diamond Fields Reports Third Quarter Results
Cape Town, May 23rd, 2006 - Diamond Fields International Ltd. (TSX:DFI) ("DFI" or the "Company") announces results for the period ended March 31st, 2006.
Net loss for the nine months ended March 31, 2006 was $(4,896,063) or $(0.05) per share, compared with $(994,631) or $(0.01) per share in 2005. All revenue for the nine months ended March 31, 2006 resulted from the sale of diamonds held in inventory or recovered during operations. A total of 11,309 carats were sold at an average price of approximately $186 per carat generating revenue of $2,107,399. Comparatively, the Company sold 26,250 carats in the nine months ended March 31 2005 at an average price of $205 per carat generating revenue of $5,391,621. Production, royalty and selling expenses associated with the sale of inventory totaled $3,322,750; whereas, these operating costs for the same period in 2005 were $2,490,067. The difference in costs between 2006 and 2005 resulted from the terms of the contract mining agreement with Samicor Mining (Pty) Ltd. The Company generated an operating loss of $(1,215,351) for the nine months ended March 31, 2006 compared with a surplus of $2,901,554 for the same period in 2005. Factors contributing to the loss included downtime due to equipment failures on the mv DF Discoverer, along with weather delays and port calls for refueling.
The Company incurred general and administrative expenses of $2,732,155 during the nine months ended March 31, 2006 compared to $2,562,852 during 2005. During the nine months ended March 31, 2006 the Company recorded a provision for impairment on certain of its exploration properties.
The complete report of the Company's unaudited financial statements and related notes for the third quarter period ended March 31, 2006, together with Management's Discussion and Analysis, have been filed on SEDAR and are available at www.sedar.com and on the Company's website, at www.diamondfields.com.
Diamond Fields International Ltd. and Moydow Mines International Inc. (TSX: MOY)(AIM: MOY) ("Moydow") announced in press releases dated March 1, 2006 that they had reached an agreement effective February 28th, 2006 pursuant to which Moydow security holders will exchange their Moydow securities for securities of Diamond Fields (the "Acquisition"). The Acquisition remains subject to various conditions as previously announced. Moydow, like Diamond Fields, is engaged in mineral exploration and development worldwide.
DIAMOND FIELDS INTERNATIONAL LTD.
"Roger J. Daniel"
Roger J. Daniel, President and CEO
For further information, contact Greg Girdler, Investor Relations at (604) 288-1400
Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in Diamond Fields' periodic filings with Canadian Securities Regulators. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Diamond Fields does not assume the obligation to update any forward-looking statement.
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