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 Thu Jul 15, 2004
Diamond Fields Announces Acquisition of Drill-Ready Finland Diamond Exploration Properties and Other Interests

 Vancouver, July 15, 2004 Diamond Fields International Ltd. (TSX:DFI) is very pleased to announce that as part of DFI's continuing efforts to expand and improve its exploration portfolio, it has agreed to acquire a prospective diamond exploration project located in Finland, along with potential rights to other projects under negotiation in Africa and Russia.

Diamond Fields has entered into an agreement with Gondwana (Investments) SA, Angstrom Capital Ltd. and other shareholders of Discoverer Ltd., (the "Vendors") whereby Diamond Fields will acquire, directly or indirectly through wholly-owned private subsidiaries, diamond exploration licenses in Finland. The licenses include a drill-ready project in the Kuopio - Kaavi kimberlite district of Finland and a license area in a potential new kimberlite province. The interests being acquired are indirectly owned 70% by Diamond Fields' controlling shareholder Mr. Jean-Raymond Boulle, and 30% by two other arm's length parties.

The Finland licenses are located in two separate geographic areas in geologic settings suitable for the emplacement of kimberlites. The core group of licenses are located within the Kuopio - Kaavi kimberlite district in south-central Finland. Gondwana has advised that approximately 20 kimberlites of the Group 1 type have been discovered within this district of which many have been shown to be diamondiferous. The Vendors' properties lie approximately 60 km north-east of the city of Kuopio and are readily accessible through a network of excellent roads. Nearby, a full-scale mineral processing laboratory owned by the Geological Survey of Finland (GTK) is available to provide sample processing services to the Company, including the processing of bulk samples through a diamond pilot plant. The Vendors' licenses in this region consist of claims and claim reservations covering an area of approximately 65 square kilometres. The central Kaavi license nearly surrounds the claim hosting the two hectare diamondiferous kimberlite Lahtojoki which was recently optioned to an AIM-listed company in the United Kingdom.

Gondwana has identified multiple high quality anomalies in this area with over 130 till samples processed for kimberlite indicator minerals. One till sample alone returned over 900 kimberlite indicator grains, suggesting a proximal kimberlite source within the license. Following on the sampling, a program of close spaced ground geophysics (magnetic and electromagnetic) has recently identified a drill-ready target.

Gondwana has further advised Diamond Fields that the second license area, in north-central Finland, may extend over a new kimberlite province. These claim reservations encompass approximately 940 square kilometers, and limited early-stage till sampling by the Geological Survey of Finland has yielded kimberlite indicator minerals with promising chemistry.

In addition to the Finland licenses, Diamond Fields will assume the Vendors' interests in certain other exploration projects in Africa and Russia whose acquisition is currently under negotiation or application by the Vendors. One of these projects includes a number of pending applications for diamond and platinum exploration licenses in Africa. Further information on these licenses will be provided on approval of the granting of these licenses.

The Vendors are also assigning their rights to DFI to take over acquisition negotiations on a drill ready diamond exploration project in Russia as well as a pre-feasibility stage base metal project in Africa.

As consideration for the acquisition for the rights to the projects, DFI has agreed to (i) issue to the Vendors 2,250,000 common shares of DFI, (ii) reimburse the Vendors for their out-of pocket costs of US$656,000 (payable in four equal installments of 25% commencing on the closing and every 4 months thereafter), (iii) grant to the Vendors a 2% gross overriding royalty on revenues from diamonds and gemstones derived from the projects and (iv) grant to the Vendors a 1% net smelter return royalty on revenues from products other than diamonds and gemstones derived from the projects.

This transaction is subject to a number of conditions including DFI completing a due diligence review to its satisfaction within 45 days, DFI board approval and receipt of all necessary regulatory and stock exchange approvals.

Mr. Gregg J. Sedun, President and CEO of Diamond Fields stated: "We are delighted with this acquisition as it provides Diamond Fields with additional excellent exploration opportunities including an exciting drill-ready diamond project in Finland as well as the potential to acquire other attractive projects in world class mineral locations."

Diamond Fields International Ltd. is an internationally active exploration and mining company pursuing mineral exploration opportunities worldwide. The Company's corporate strategy is to maximize cash flow from its Namibian marine diamond concessions and systematically explore and develop its international mineral exploration projects. In addition, the Company continues to explore opportunities to acquire new economic mineral projects worldwide.

DIAMOND FIELDS INTERNATIONAL LTD.

"Gregg J. Sedun"

Gregg J. Sedun
President and Chief Executive Officer

For further information contact Investor Relations (1-888-682-2113)
Website: www.diamondfields.com

Forward-Looking Statements:
Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in the 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 forwardlooking statement.
 
 

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