Brazilian Diamonds to raise funds

The Directors of Brazilian Diamonds Limited announces the placing of 25,957,000 new common shares of no par value each in the Company, conditional upon admission to trading on AIM and the Toronto Stock Exchange (TSX) (the Placing). The Placing will raise Cdn. $2,595,700 (approximately pounds sterling 1.3 million) (before the expenses of the issue).

This Placing will provide the Company with ongoing working capital and assist the Company in the continuation of bulk sampling operations at the Salvador 1 project in Bahia State, Brazil.

The New Shares subscribed for under the Placing have been placed with investors at a price of Cdn. 10 cents (approximately 5p) per share by the Company with assistance from Williams de Broe Ltd in a non-brokered private placement. A total commission of four per cent of the gross proceeds will be paid in connection with the Placing.

Application will be made for the New Shares to be admitted to trading on AIM. It is expected that admission will take place on 28 March 2008. The New Shares are restricted from transfer for a period of four months expiring on 27 July 2008. Following the Placing there will be 194,370,722 shares in issue.

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