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

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.

Ditto Andy,

Haven't researched EPD thoroughly yet but from what I have learned this still looks like a great prospect. One to watch for now imo.

Don't wait too long dibbles, the re-financing announcement may be soon and it's likely to be a lot better than some have suggested. They have enough to last till November, but they only need enough to keep running for 3 - 4 months. Revenue stream will allow them to get back to normal from January onwards. Remember they will have $millions coming in each month at full production and if the tailings are anything to go by (which we can not assume) then we might get even better prices for any fancy yellows.

If the market reacts positively, which I think they will, then the share price might take off IMO.

Anom hi,
I'm already in, although have to admit to a little trading.
Couldn't resist with last weeks spike.

Andy hi,

I'd be surprised if they dilute for what they need, but who knows.
I think once they announce funds in place you'll have to be quick as we've seen how these can move imo.

dibbles,

Yes you are probably correct, and they may well borrow rather than issue more stock, we shall see.

September 29, 2005: AIM-quoted European Diamonds is pleased to announce positive
sampling results from its Main Kimberlite Pipe in Lesotho, Southern Africa.

Caustic fusion micro-diamond analysis undertaken by Kennecott Canada Inc has
recovered 886 diamonds larger than 150 microns from 691 kg of kimberlite core.
The sampling is the first carried out by European Diamonds on the 9.5-hectare
Main Pipe, located 200 metres from the company's producing Satellite Pipe mine.

The strong results further underscore European Diamonds' progress towards
becoming the world's largest independent producer of diamonds, and the biggest
diamond producer on AIM.

Table 1 below provides the detailed sample results.

Table 1 Square Sieve series diamond distribution

Sieve 0.15mm 0.212mm 0.3mm 0.425mm 0.6mm 0.85mm 1.18mm

No. of Diamonds 482 226 89 54 22 9 4

The largest stone measures 2.1mm on its longest axis and approximately 30% of
the diamonds are descried as transparent and white.

European Diamonds' Chief Executive Roy Spencer said: 'Our expectation is that
the Main Pipe will be the basis of a long-term, major diamond mine that will
push European Diamonds further ahead as the world's largest independent diamond
producer. The company's target for the Main Pipe's diamond production is over
700,000 carats per annum which is additional to the current annual production
rate of 290,000 carats.'

Numis still have EPD as a buy this morning with a 76p price target.

Wel they managed to raise the cash needed at 23p.



From : European Diamonds Plc
Sent : 05 October 2005 08:40:22
To :
Subject : Private Placement Financing


Go to previous message | Go to next message | Delete | Inbox

=======================================================================
Re: Press Releases - Wednesday, October 05, 2005
Private Placement Financing
=======================================================================

The Company announces that it has raised 1,150,000 by way of a private
placement of 5 million new ordinary shares at 23p per share and has
received the subscription monies. In connection with this private
placement, the Company will also issue 2.5 million share subscription
warrants, subject to shareholder approval at an Extraordinary General
Meeting which is to be convened in the near future. These warrants will
be exercisable at 35p per share and will be valid for twelve months.

The funds raised through the private placement will be used for the
Company's working capital.

Following this subscription, the Company has in issue 53,994,783
ordinary shares.

The Company owns diamond interests in Lesotho and Finland. Its
principal project is currently the Liqhobong Satellite Mine in Lesotho
which has recently commenced processing primary kimberlite. First
diamond sales are scheduled for November 2005. The Company is also
sampling at its 9.5 hectare Main Pipe, adjacent to the Satellite Pipe,
and has recently announced positive sampling results.

The Company also has diamond exploration projects in Finland,
principally at Lahtojoki, Lentiira and Area 3. The positive results
from sampling confirm the prospectivity of the Finnish part of the
Karelian craton.



For further information please contact:

Roy Spencer
European Diamonds PLC
22 Grosvenor Square
London, W1K 6LF
Tel: +44 (0) 20 7529 7502
Fax: +44 (0) 20 7491 2244
e-mail: enquiries@europeandiamondsplc.com
website: www.europeandiamondsplc.com

======================================

More dilution as you said Andy, but at least the immediate future is now secured.
Why do they keep going for private placings I wonder, are they looking after buddies?