| ||Mon Feb 5, 2007|
Diamond Fields' Rights Offering Closed
| ||Cape Town, February 5, 2007 - Diamond Fields International Ltd. (DFI:TSX) ("DFI" or the "Company") is pleased to announce that further to the Company's news releases dated December 18, 2006 and January 24, 2007, regarding DFI's Rights Offering to its shareholders resident in Canada and in eligible offshore jurisdictions, a total of 28,036,629 common shares of the Company were subscribed for at a price of $0.09 per share for total gross proceeds of approximately $2,523,297.|
Pursuant to the standby guarantee agreement entered into between Spirit Resources SARL ("Spirit") and the Company in connection with the Rights Offering (as announced in the Company's news release dated September 1, 2006), of the approximately $2,523,297 raised in the Rights Offering, an aggregate of $1,761,825.96 was provided by Spirit through the exercise of its basic and additional subscription privileges for the issue of 19,575,844 shares under the Rights Offering. Spirit is controlled by DFI's major shareholder, Jean-Raymond Boulle, who, following completion of the Rights Offering, beneficially holds, directly or indirectly, 38,174,305 common shares of the Company representing approximately 27% of the Company's 141,332,646 issued and outstanding shares.
As disclosed in detail in the Company's rights offering circular dated December 14, 2006, the proceeds from the Rights Offering has been or will be used to fund the completion of the Company's mining vessel dry docking, upgrade and maintenance program, to continue the Liberian diamond and gold exploration projects, to pay for the expenses of the Rights Offering and for general working capital and administrative expenses.
The Board of Directors of the Company wishes to thank its shareholders who participated in and contributed to the success of the Rights Offering.
DIAMOND FIELDS INTERNATIONAL LTD.
"Roger J. Daniel"
Roger J. Daniel, President and CEO
For further information, contact Roger Daniel at +27 21 425 1990
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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