BDY Brazilian

RNS Number:8762I
Brazilian Diamonds Limited
13 September 2006




BRAZILIAN DIAMONDS ACQUIRES ADVANCED KIMBERLITE PROJECT FROM DE BEERS



Vancouver, British Columbia, Canada.  September 13, 2006.  Brazilian Diamonds
Limited (BDY: TSX/AIM) ("Brazilian Diamonds" or "the Company") is pleased to
announce that it has now completed the acquisition of the Chapada Diamantina
Kimberlite Project from De Beers Brasil Ltda.

The Chapada Diamantina Project is located in the State of Bahia, north-east
Brazil and importantly, includes the Salvador 1 diamond-bearing kimberlite pipe
and 5 other kimberlite bodies.  In addition, the transaction includes
exploration data bases and mineral licenses held by De Beers within the region.

De Beers has reported that this exploration data base includes 194,120 line
kilometres of airborne geophysical data (covering 468 identified magnetic
anomalies), 10,665 alluvial samples, 14,059 electron microprobe analyses and 124
drill holes (for 7,923 metres in total).  De Beers also reports that 243
diamonds totaling 8.55 carats were recovered from 8 mini bulk samples (144 m3
total) in the region.

Following completion of this transaction, Brazilian Diamonds plans to focus its
immediate attention on the licenses covering the Salvador 1 kimberlite pipe
which De Beers advises yielded diamonds during initial test work.  The Company
will undertake a thorough examination of the relevant data acquired in the
transaction with a view to undertaking a bulk sampling of the Salvador 1 pipe as
soon as practicable.

The Company already owns a transportable 15 tonne per hour Dense Media
Separation (DMS) plant located in Minas Gerais and it is proposed that this will
be transported to the Salvador 1 site in order to process the bulk sample.

The terms for the acquisition include:

1.   An initial cash payment on closing of US$150,000;

2.   A second payment of Cdn$150,000, 180 days after closing to
     be paid either in cash or the equivalent value in BDY shares;

3.   A third payment of Cdn$150,000, 360 days after closing to be
     paid either in cash or the equivalent value in BDY shares;

4.   The issue to De Beers of 1 million BDY shares in the event of the 
     discovery on this portfolio of properties, a kimberlite pipe which after
     bulk testing is confirmed to contain more than 200 carats of diamonds.

5.   In the event that BDY shares are issued in lieu of cash, the number of 
     shares issued will be determined using the higher of the prevailing
     market price of BDY shares and Cdn$0.10 per share; and

6.   De Beers will retain the right to re-acquire an interest of up to 40% in 
     any kimberlite discovery on the portfolio (and confirmed to contain
     more than 200 carats of diamonds).  In order to exercise this right, 
     De Beers will have to pay BDY an amount calculated as 300% of BDY's 
     exploration expenditures to that date, on the kimberlite body.

The Salvador Diamond Project is located in the central portion of the ancient
Sao Francisco Craton, which is of Archean age and has similar basement
geology to most of the world's most prolific diamond producing regions,
including southern Africa, Russia and northern Canada.  Brazilian Diamonds is
confident that by using this exploration data base and complementing it with
additional exploration work, there exists excellent potential for additional
diamond discoveries to be made in the region.

Commenting today on the acquisition, the Chairman of Brazilian Diamonds, Mr.
Kenneth Judge stated that "the purchase of the Chapada Diamantina exploration
data set and mineral licenses sits comfortably with the Company's strategy of
actively seeking important diamond exploration targets, such as the Salvador 1
diamondiferous kimberlite, whilst negotiations over the environmental licensing
required for the development of the Canastra 1 kimberlite project, remain
on-going.  Brazilian Diamonds' highly experienced exploration team is confident
that the Company's portfolio of diamond exploration targets has the potential to
host further important kimberlite discoveries and project development
opportunities".


Dr. Harrison Cookenboo (P.Geo) and Consulting Geologist is the Qualified Person
as defined under National Instrument 43-101 responsible for the technical
disclosure in this release, and has reviewed and approved the contents of this
release.



Editors' Note:-

Brazilian Diamonds is a leading Brazil-based exploration company focused on the
discovery of kimberlites on its extensive portfolio of properties in the State
of Minas Gerais, with the goal of becoming a significant producer of diamonds.

The Company is awaiting final approval before commencing the environmental
licensing process for development of the Canastra 1 kimberlite body for which
mine feasibility work has already been completed and the required Mines
Department approvals are already in place. It is intended to bring Canastra 1
into production once this licensing process is completed.

The Company has a fully operational diamond separation/analysis laboratory at
Patos de Minas, Minas Gerais which is strategically located near its properties
in the Santo Antonio and Coromandel areas. The Company has a highly experienced
team including four geologists almost all of whom are located at the Company's
facilities in Brazil.


The Company's strategy for non-core activities on its properties is to form
joint ventures.  A Cdn$1,000,000 feasibility study is currently underway for a
joint venture for the mining of alluvial diamonds on its properties in the Santo
Antonio river drainage. The joint venture involves two important Brazilian
companies: CODEMIG, the state owned mining development organisation and
Mineracao Rio Novo Ltda., a wholly owned subsidiary of Andrade Gutierrez SA, one
of Brazil's largest civil engineering firms and an existing large scale, dredge
based producer of alluvial diamonds.





For further information refer to the Company's website www.braziliandiamonds.com
or contact:



Brazilian Diamonds Limited
Ken Judge, Chairman                                             +44 7733 001 002
Stephen Fabian, President & CEO                                 +55 31 8814 5111


Investor Relations
Europe                                                          +44 20 7590 5503
North America                                                     1-866-689-2599

Hanson Westhouse LLP (Nomad to the Company)                     +44 113 246 2610
Tim Feather

Teather & Greenwood: Landsbanki Limited (Broker to the Company) +44 20 7426 9000
James Maxwell




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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