| ||Thu Oct 26, 2006|
Default Status Report Pursuant to CSA Staff Notice 57-301
| ||(Cape Town, October 26, 2006) - Diamond Fields International Ltd. (DFI:TSX) ("DFI" or the "Company") is filing this Default Status Report pursuant to CSA Staff Notice 57-301 Failure to File Financial Statements on Time -- Management Cease Trade Orders ("57-301") in respect of the Company's inability to file its annual audited financial statements for the year ended June 30, 2006 (the "Annual Financial Statements") by the deadline of September 28, 2006 as required by National Instrument 51-102 Continuous Disclosure Obligations. Further to the Company's application under 57-301, on September 29, 2006 and October 3, 2006, the British Columbia Securities Commission and the Ontario Securities Commission, respectively, issued cease trade orders (the "Management Cease Trade Orders") restricting trading in the Company's securities by specified insiders of the Company until the Company files the Annual Financial Statements and related annual filings. This Default Status Report is being filed to update the Company's Notice of Default dated September 29, 2006 (the "Notice of Default") and the Company's subsequent Default Status Report dated October 12, 2006 (the "First Default Status Report"), as required by 57-301.|
As a result of the factors noted in the Notice of Default, the Company has been unable to complete the Annual Financial Statements and related annual filings by the previously anticipated target date of October 20, 2006 indicated in the First Default Status Report, and now plans to file the Annual Financial Statements and related annual filings on October 27, 2006. As a result of the delays in completing the Annual Financial Statements, the Company continues to anticipate a delay in filing its interim financial statements for the three-months ended September 30, 2006 (the "Interim Financial Statements") which are due by November 14, 2006. The Company has been advised by the British Columbia Securities Commission that, as a result of the anticipated delay in filing the Interim Financial Statements, the Management Cease Trade Orders will not be revoked until after the Annual Financial Statements and the Interim Financial Statements have been filed by the Company. Accordingly, the Company's previously announced proposed rights offering is not permitted to proceed until such time as the Annual Financial Statements and the Interim Financial Statements have been filed. The Company expects to file the Interim Financial Statements by November 24, 2006.
There have been no other material changes to the information contained in the Notice of Default and the First Default Status Report nor is there any material information concerning the affairs of the Company that has not been generally disclosed.
DATED October 26, 2006.
DIAMOND FIELDS INTERNATIONAL LTD.
Roger J. Daniel, President and CEO
For further information, contact Roger Daniel or Randal Cullen at +27 21 425 1990
9, Foregate Square Tel: 011 2721 425-1990
Table Bay Boulevard Fax: 011 2721 425-1999
Cape Town, South Africa 8001
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