European Diamonds Plc (EPD: AIM) is a diamond exploration and development company with advanced projects in Finland and Lesotho.

In Finland, the company has explored a large part of the prospective Karelian Craton and identifed a number of kimberlite indicator trains. Kimberlites have been discovered in one of these areas and exploration continues in the others. Evaluation work on the promising Lahtojoki Pipe has begun with a 5,000 tonne bulk sample due to be collected before Easter 2005.

In Lesotho, European Diamonds holds a 25 year mining license to develop the Liqhobong diamondiferous kimberlites. The Liqhobong Project provides for the commencement of mining at 290,000 carats per annum from the end of 2004 from the Satellite Pipe and the evaluation of the adjacent large Main Pipe and start of a Feasibility Study in 2005.

European Diamonds will become a mid-tier diamond producer in 2005 and intends to grow through acquisition and in-house exploration. The experienced management and technical team of European Diamonds have a strong track record of discovery and a history of wealth creation for shareholders.



The Kingdom of Lesotho gained its independence from the UK in 1966 and is the only constitutional monarchy on the African continent. The country is a small, densely populated mountainous country situated in the east of the Republic of South Africa, which entirely encircles the country.

Diamonds in Lesotho
The country has long been known as a source of large, high quality diamonds, mostly from alluvial deposits. To date most of the country's diamond production has been derived from the Letseng-la-Terai deposit which was mined by De Beers between 1977-1981. Letseng has recently returned into production and is again producing high quality gems albeit on a modest scale. Apart from Letseng, the only other known significantly mineralised kimberlites in the country are the Liqhobong suite and the nearby lower grade Kao pipe all located about 40 kilometres west of Letseng also high in the Maluti mountains.





Finland project.

Project Highlights
Work undertaken by European Diamonds and the Geological Survey of Finland has proven that the Achaean-aged Karelian Craton is highly prospective for hard-rock diamond deposits.
European Diamonds currently have seven regional exploration projects in eastern and central Finland in addition to the Lathojoki project currently under evaluation.
The Company has recovered high quality kimberlite indicator minerals from all of the exploration projects and will continue with the field exploration of these areas in 2005.
Work on the Lentiira Project in central eastern Finland has identified a large kimberlite complex covering an area of some 160 square kilometres. Although the Company has recovered high quality indicator minerals and diamonds from the project area, to date only linear kimberlite dykes have been discovered.
None of the sampled dykes has proved to be the source of the highest quality indicators emanating from the highly prospective 'Railway' indicator train. Further assessment of this project will continue throughout 2005.





Corporate website : http://www.europeandiamondsplc.com/s/Home.asp

Shareholder info : http://www.europeandiamondsplc.com/s/InformationRequest.asp

Andy, interestingarticle, thanks.

Still looks like they need to raise 2million pdq, which may involve some rather dilutive terms, e.g. lots of warrants at an exercise price of rather less than 75p attaching to either a loan or share capital. Here's hoping they can make that happen.

The delay of 3 months is rather less important IMHO.

sd

Very sensible analysis. Let's see what happens.

What happens is a big jump in volume and we'll start to see the price move up now methinks..I like it.

Prepare for lift off.

joe,

well the price has certainly increased, not sure how much more it will appreciate unil the company announced further fundiong is secure to be honest.

I'm waiting for the next RNS.

so folks, what's rattled EPD's cage today - nice little move up off the floor on some half decent volume but no knews I could find?

sd

Stockdog,

Yes a nice 12% rise, on good volume, maybe something in the air?

Let's see if it follows through tomorrow, and I'll be watching the volume in particular.

Nicely encouraging report - do you think short-term finance excludes the possibility of a share placing?

RNS Number:4116R
European Diamonds PLC
19 September 2005

PRESS RELEASE





Encouraging results of sampling from the Area 3 Kimberlite in central Finland





European Diamonds is pleased to announce positive results from drill samplings
at its new kimberlite discovery in the Area 3 exploration zone in Central
Finland.



The results are described as "spectacular" by the Geological Survey of Finland.



Separate drill core samples were sent to laboratories in Australia and Canada
for kimberlite mineral identification and micro-diamond analysis. The results
show that the chemistry of the minerals is both highly prospective for diamonds
and the likely source of the minerals found in the 30-kilometre mineral train,
which the European Diamond exploration team has been following.



Dr Hugh O'Brien of the Geological Survey of Finland said: "The compositions of
the pyropes and chromites from this kimberlite are spectacular in terms of their
diamond potential ranking."



Most significantly, micro-diamond analysis at the laboratories of Kennecott
Canada Exploration in Thunder Bay, Canada, identified a total of 42 small
diamonds between 0.15 and 0.88 mm in size from 4 samples totalling 41.2 kg in
weight. Sample processing was to the ISO/IEC17025 standard. Eleven of the 42
diamonds have a longest axis equal to or greater than 0.5mm with the largest
stone having a long axis of 0.88 mm. Approximately 26% of the stones were white
and some 38% were octahedrons.



European Diamonds' Chief Executive, Roy Spencer, commented "These exciting
results provide further strong evidence of the prospectivity of the Finnish part
of the Karelian Craton - which already contains the world class Grib kimberlite
in the Arkhangelsk area of north western Russia."

European Diamonds' exploration in this part of central Finland has already
identified 6 other kimberlite indicator trains within 20 kilometres of its
latest discovery. Exploration of this kimberlite and the mineral trains in the
near vicinity will continue over the course of the field season.



Funding:

The Company continues discussions with advisers concerning potential sources of
short-term finance to meet the Company's working capital requirements.

This is almost certain to ease any phasing financing concerns and also provides further certainty to the site. IMHO we will see this back at 40-50p before too long.

Given the positive find - It may also be worth checking out SDS who are currently drill testing Kimberlite fields in the same geological area in Finland. SDS are essentially a start up operation (spin off from Tertiary Minerals) and if the news is positive, then expect it rocket up.

Good news at last

RNS Number:5969R
European Diamonds PLC
22 September 2005





Liqhobong Satellite Pipe Mine Firmly on Track for First Diamond Sales in

November





DATE: 22nd September 2005



AIM-quoted European Diamonds is pleased to announce that the first batch of
primary kimberlite has now passed through its new diamond recovery plant at the
Liqhobong Satellite Pipe mine in Lesotho, Southern Africa, following completion
of the heightened tailings retaining wall.



The mine is currently working with a single shift but is on course to be running
at full capacity to produce 290,000 carats per annum of diamonds by the end of
the year. As previously announced, since the project came on stream in June,
the plant had until now been processing tailings from previous bulk sampling and
surface-mining activities.



Arrangements are being put in place for the first sale of Liqhobong diamonds in
mid November. The first diamond sale is expected in part to comprise lower-value
diamonds recovered from the reworking of tailings, as well as those recovered
from the primary kimberlite and may therefore not realise prices as high as
subsequent sales in 2006.



European Diamonds' Chief Executive Roy Spencer said: "We have created a diamond
mine which, at full production, will make this company the largest independent
diamond producer in carat terms in the world. It has been an enormous task
undertaken well under budget by our field team in a very challenging
environment."



Mr Spencer added that continued work over the next 12 months on the neighbouring
Main Pipe - which at 9.5 hectares is considerably larger than the Satellite Pipe
- "will place the company firmly on the diamond world's radar screen".

As we all knew the financing hiccup was just that and nothing to get over-excited about. IN the low 20p's this share was phenomenally undervalued. At 33p it is still unfeasibly cheap and given today's announcment the institutions will start to weigh in again before to long. I would think that 60 p by Christmas is as good as assured.

I'll drink to that.

i can't remeber exactly, but a broker target of 60-70p was about before the financing problem and i think that was without the finland operation??? (please dont hold me to that but it was either 70p without finland or losotho). so now finlands ok, lord knows what a target may be. any ideas/links?

tbrooking66,

The broker note was 77p for satelite pipe alone, 4 if Finland is a goer.

dibbles - I think I can speak for otehr posters when I say we'd all like to hear more from you!

I'll second that!

-Just watching with a view.

Hi all, not sure what more I can add at the moment.
The past broker note won't matter much until they confirm short-term funding although I'd be surprised if they don't get it with a working mine and diamonds in the safe.
I sold out earlier this year to move more funds to GFM but couldn't resist buying back in at low 20's.
Once reasonable funding is announced we've got ourselves a bargain imho.

EUROPEAN DIAMONDS PLC
(the 'Company')

ANNOUNCEMENT

27 September 2005

Disclosure of share interest

Date of notification: 27 September 2005
Shareholder: investment funds under the management of DKR Saturn Management L.P.

Transaction: disposal of 669,500 ordinary 5p shares

Resulting share interest: aggregate holding 5,522,222 ordinary 5p shares
representing approximately 11.3% of the issued share capital.

dibbles,

Well I thought I had missed an entry point with the recent rise, but looking as though I may be fortunate after all.

Back to 20p?

Maybe IMO, they have to finance before it can move forward, and I won't buy until then, fear of instant dilution keeps me out for now, good luck.