high count results - tsumkwe diamond project

Tsumkwe Diamond Exploration Project, Namibia
A gravity survey has now been completed in the central portion of the project over
the area where the Company recovered a large number of very fresh kimberlitic
indicator minerals as reported to the Australian Stock Exchange on 10 January 2005.

Target drill testing will be undertaken once the area, which has recently been subject
to heavy rainfall, has dried sufficiently to allow access.

Further encouraging high count results have also been received from the western
portion of the project area. RAB drill hole NAM665 has returned 22 pyrope garnets
in the .4-.8 mm fraction. Of these 17 are fresh garnets indicative of a relatively local
source.

There appears to be a depositional relationship between this drill hole and NAM516
drilled some 4 km to the north east which returned 29 kimberlitic garnets including
13 fresh garnets and drill hole NAM395, drilled 7 km north west of this hole, which
returned 23 kimberlitic garnets, 7 of which were fresh garnets.

A ground gravity survey is being conducted in this area to cover local aeromagnetic
targets in search for the source of these garnets and also to define any potential
paleochannels.

Base Metals Exploration Projects – Namibia and Botswana
Induced Polarisation (IP) surveys have commenced to cover the Tsumkwe base
metal soil anomalies in Namibia and the Kihabe base metal anomalies on the
Company’s adjacent tenement in Botswana. At Kihabe the Company has previously
obtained encouraging wide-spaced drill results from a 2.6km long zinc, lead, silver
anomaly. It is believed that an IP survey will better determine how future drilling
should be conducted over this anomaly.

An IP survey is also being conducted over a gossan, south of the Kihabe anomaly,
which has previously returned values of 12.46% lead, 3.98% zinc, 1.6% vanadium
and 102 g/t silver.

Yours faithfully,
Martin Spence, BSc., M.Aus.I.M.M.
Director - Exploration