BDY Brazilian

RNS Number:1265J
Brazilian Diamonds Limited
19 September 2006



BRAZILIAN DIAMONDS LIMITED


HIGH VALUE DIAMONDS RECOVERED FROM THE SANTO ANTONIO DO BONITO JOINT VENTURE
ALLUVIAL DIAMOND PROJECT


Vancouver, British Columbia, Canada. September 18, 2006.  Brazilian Diamonds
Limited (BDY: TSX/AIM) is pleased to announce the diamond recovery results from
the first three alluvial mining test pits of the Santo Antonio do Bonito (SAB)
Joint Venture feasibility study.

A total of 31 diamonds weighing 19.38 carats were recovered from the first three
test pits with the largest of these diamonds being a 5.92 carat light pink stone
estimated by independent, local Brazilian diamond buyers to have a value of
approximately US$45,000, reflecting a range of price estimates of between
US$6,000 and US$10,000 per carat. The next 3 largest stones weighed 2.75, 2.71
and 1.92 carats each, with the remaining stones recovered down to a minimum size
of 0.02 carats (2 points).

Processing was undertaken using a jig plant constructed and operated under
contract to the joint venture by Brazilian Diamonds' subsidiary Samsul Mineracao
Ltda.  In total, 6,932 m3 of sand and gravel material was extracted and
processed from within the three test pits.  The material was tested in 3
distinct units: 1) the coarse basal gravel layer (from which most of the
diamonds were recovered); 2) an upper layer of sand and gravel; and 3) mixed
upper and basal gravel layers.

Most of the diamonds, including all the largest and most valuable stones, were
recovered from the testing of 2,132 m3 (in situ) of basal gravels reached at a
depth of between 3.3 and 10.7 metres in the various pits (Table 1).

Table 1: Alluvial test results


   ALLUVIAL SAMPLE Results
   Media Processed      Diamonds        Diamonds      Volume (m3)
                      recovered  (#    recovered        in-situ
                         stones)        (carats)
   Plant clean-up           5             0.29            n/a
   Upper Gravel             7             1.89           2,976
   Mixed Upper and          5             1.93       1,825 (est.)
   Basal Gravels
   Basal Gravel            14            15.27           2,132
   Totals:                 31            19.38           6,932


A further six stones weighing a total of 1.89 carats, (the largest stone 0.60
carats) were recovered from the upper sandy gravel layer, although it comprised
2,976 m3 (in situ) of total material treated.  This upper sandy gravel layer
ranges from 3.3 to 9.1 metres in depth.   An additional 5 stones weighing 1.93
carats came from processing of mixed upper and basal gravel layers.  The largest
diamond from the mixed upper and basal gravels weighs 0.78 carats.

The consistent recovery of diamonds to date is encouraging, especially the
recovery of a very high-value light pink diamond from a moderate sample size.
The total sample size is still too small for confident prediction of average
diamond values per carat and points to the need for additional larger bulk
samples.

Expectations for the future recovery of high-value diamonds from within the
Santo Antonio do Bonito alluvial gravels are further enhanced by the historical
production in the region of very large gem quality diamonds, including at least
nine diamonds, each greater than 300 carats in weight.  In addition, in 2002
Brazilian Diamonds tested 345 m3 of nearby terrace gravels from which three
diamonds were recovered weighing a total of 30.0 carats, including one diamond
weighing 27.4 carats which was sold for US$1,000 per carat.  These results
suggest there is a high probability that additional high-value diamonds will be
recovered from this project in the future.  If these bulk sampling programmes
are considered together, the two tests of diamond bearing gravels from the Santo
Antonio do Bonito River, recovered 49.6 carats of diamonds with a value of
US$75,000 or $1,500 per carat.  Two diamonds alone accounted for 95% of the
total diamond value.  Given this tendency towards large high-value stones being
recovered from the area, larger samples are required to better define this
average value per carat.

Due to this encouraging recovery of high-value diamonds, the Joint Venture
partners have now approved the testing of two additional pits which will proceed
immediately.  It is expected that the test work will be finalised by the end of
October, prior to the commencement of the heavy seasonal rains.

The alluvial tests are being conducted in Joint Venture with CODEMIG, the Minas
Gerais State Government Corporation for mineral development and Rio Novo
Mineracao, whose recently exhausted alluvial diamond project on the Jequitinonha
River in Minas Gerais was one of Brazil's largest diamond producers for the last
twenty years.  CODEMIG in exchange for a 3.5% gross royalty is financing the
cost of the feasibility study and Rio Novo is committed to finance any mine
development. Brazilian Diamonds will retain a 25% free-carried interest in the
project.

Commenting on this important development at the Santa Antonio do Bonito Joint
Venture, the Chairman of Brazilian Diamonds, Kenneth Judge said "These results
are very encouraging and give us confidence that the further testing at Santa
Antonio do Bonito will produce high value stones in sufficient quantity as to
warrant large scale mining of our extensive inventory of diamondiferous gravels
in this famous region of Brazil.  We hope to reach a conclusion on the
feasibility of a commercial scale operation, to be developed in consultation
with our partners, by the end of this year."

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 States
of Minas Gerais and Bahia, with the goal of becoming a significant producer of
diamonds.

The Company is awaiting final approval before commencing the environmental
licencing 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 recently acquired the Chapada Diamantina project in Bahia from
De Beers which includes the diamondiferous Salvador 1 kimberlite.  Plans are
under-way to undertake a large bulk sample at Salvador 1 utilising a 15 tonne
per hour DMS treatment plant, which is currently located at the Company's Santo
Antonio do Bonito property.  De Beers retains a right to reacquire up to 40% of
any kimberlite found containing more that 200 carats of diamonds on the Chapada
Diamantina properties.

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                                            + 44 773 300 1002
Stephen Fabian, President & CEO                               +  55 31 8814 5111

Investor Relations
Europe                                                         + 44 207 590 5503
North America                                                     1-866-689-2599

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

Teather & Greenwood: Landsbanki Limited                        + 44 207 426 9000
(Broker to the Company)
James Maxwell



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