West African provides operational update

West African Diamonds plc, a diamond focused explorer with operations in Sierra Leone and Guinea, provides an operational update on its activities in Sierra Leone and Guinea.

The company confirms that it has received an approach from a third party which, if discussions are concluded satisfactorily, may lead to a takeover of the Company. A non binding Memorandum of Understanding has been signed and due diligence is being conducted. A conclusion is likely within 8 weeks.

A separate decision has been made to expand operations in Guinea and to scale down activities in Sierra Leone, due to positive operational results in Guinea, a deteriorating security situation in Sierra Leone, and disappointing results at Plant 11. In light of this West African Diamonds has bolstered its short term working capital through the issue of a £385,000 convertible loan at 17p per share.

Results from the bulk sampling and small scale mining activity on the Guinean Bomboko licence in the headwaters of the Aredor Mine suggest grades in excess of 30 cpht (221.5 carats from a 675 tonne bulk sample) and values of $135.34 per carat achieved on sale of a parcel of diamonds. These are encouraging and West African Diamonds will expand the mining operations using equipment already owned by the company.

Favourable geophysical results from the Droujba kimberlite pipes have led to a decision to bulk sample the pipe, to be followed up by drilling.

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