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

Lesotho diamonds to hit bourse.
Allan Seccombe
posted: Fri, 17 Feb 2006

(miningmx. com) -- More than 10,000 carats of diamonds will be made available in Antwerp in coming days as European Diamonds sells the first major output from its Lesotho mine, CEO Roy Spencer said.

European Diamonds, listed on the Alternative Investment Market (AIM), will market its first major batch of diamonds through BHP Billiton before the end of next week, Spencer told miningmx in an interview.

Production started at the Liqhobong satellite pipe mine in Lesotho's northern mountain range at the end of 2005 and full production should be achieved around April this year.

Spencer declined to say exactly how many carats have already come from the mine.

"We will announce that when we announce the sale, but we estimate it's going to be just over 10,000 carats," he said.

Asked about the quality of diamonds coming from the mine, he said there was a broad spectrum. One stone, an intense yellow 7.7 carat diamond, was expected to fetch $8,000 a carat.

"We will go all the way down to $4 or $5 a carat. The average price we are working with is just over $40. That's for the total run of mine," he said.
The $40/carat estimate is based on a sample of 6,000 carats taken in 2000 for an independent valuation.

Prices six years later are likely to be significantly higher given the drive by diamond giant De Beers to stimulate demand for the gem.

When the satellite pipe mine, which has a grade of 0.68 carats per ton, hits its stride in the next couple of months, it should produce 290,000 carats a year. The life of the operation on the 1.5 hectare kimberlite is five years.

European Diamonds is exploring the main 9.5 hectare kimberlite pipe nearby and should embark on a feasibility study before the end of this year, Spencer said. The study should be completed by next September.

"From the main pipe, we are looking at production of somewhere between 750,000 to a million carats a year," he said.

The new main pipe mine will be open cast and go down 100 metres, but there is a lot more prospectivity that can still be exploited.

"We know it goes down to a kilometre," Spencer said.

European Diamonds is in talks with the Lesotho government, which owns 25% of the Liqhobong project, about other prospects further north.

"We have an application in with the government for a large area in the northern mountains and are waiting for that to be awarded."

European Diamonds is considering a listing in Toronto, Spencer said.

"Toronto gives us access to North American retail buyers which would hopefully broaden our shareholder base away from the UK, which, traditionally, is an institutional based exchange," he said.

He declined to say how much it would cost to develop a second mine in Lesotho.

European Diamonds is also active in Finland, where it has found a "highly prospective" geological terrain. Its key project is at Lahtojoki in central Finland, where a drilling programme has confirmed a kimberlite pipe with grades of 0.44 carats per tonne.
A feasibility study is expected at Lahtojoki later this year.

First European sale today then

All will be revealed.....eeek

"more than 10,000 carats"?

I would certainly hope for a lot more than 10K!

dibbles,

Thanks, I have posted it across the road.

So, if this report is to be believed, my worst fears are realised, production running 9 months late, and around only 10000 carats produced in several months production including the remainder from the last sale!

Hi Andy,

If they have only taken 10,000 carats to market then they are obviously having teething problems to say the least, but I still think at this current sp they haven't any production valued in compared to many explorers who may come up completely empty handed.
At the end of the day they are now producing, which makes them a safer bet than many imo.
If you include the other assets they have and potential for more + regular news from sales and Main Pipe/Finland etc., it could be argued they are a bargain at current levels should sentiment change.

At 30.25p- IC view- Despite all the activity on the ground, the shares are unloved. Good value.

WHEN DO WE GET RESULTS OF DIAMOND SALE AMOUNT AND PRICE ? ANYONE

70020,

Good question!

The sale started last week apparently, so we may hear something this week.

andy
thanks but how long can it take to sell 10k if this is the amount,surely we should know by now

http://moneyam.uk-wire.com/cgi-bin/articles/200603140701067375Z.html

700202,

What as simply appalling RNS (IMO)!

EPD announced commencement of production last MAY! and in November they had a small sale, blaming De Beers "flooding the market" and so "withheld some diamonds from the sale", and now, in MARCH 2006, they sell "aproximately 9000 carats", which I interpret as LESS than 9000 carats!

So even if we put September as the real start of production, this sale represents SIX full months of production, less the small parcel sold in November!

MY guess is they will now do another placing, as this revenue is not sufficient IMO.

Really poor RNS EPD!

"major sale"! LOL!
-----------------------------------------------------------------

European Diamonds PLC
14 March 2006

EUROPEAN DIAMONDS PLC

RNS

RESULTS OF EPD'S FIRST SALE IN ANTWERP
PRODUCTION UPDATE

14 March 2006: EPD is pleased to announce the results of its first major
European diamond sale by closed tender in Antwerp. The company has received the
sum of US$435,500 from the sale of approximately 9,000 carats undertaken on the
company's behalf by its marketing agent, BHP Billiton. Prices for the Liqhobong
goods fetched up to US$6,100 per carat for large, special stones. This
production represents a surface ore grade of approximately 0.5 carats per tonne
recovered from 19,100 tonnes of contaminated near surface kimberlite.

Roy Spencer has commented: 'The average price of US$49 per carat for this parcel
is in the mid range of the expected prices for the Liqhobong diamonds, and is
encouraging given the present market conditions.

'We are confident that on an annualised basis, Liqhobong run of mine will
continue to exceed the Feasibility Study value of US$41 per carat and that with
more tonnage throughput, we will see more large stones in excess of 5 carats. It
is however pleasing that in particular the hallmark yellow Satellite Pipe stones
have attracted so much attention and we intend to aggressively develop this
market in the future.

'The information we receive from this and the next sale gives us the opportunity
to fine tune the recovery plant and develop an economic cut-off for the smallest
stones we will recover. Present throughput is at approximately 50% of full
capacity, due in no small measure to the low grade contaminated surface
weathered kimberlite which still remains on the Satellite Pipe. This material
will take about 4 months to completely remove and process before we only have
primary kimberlite to put through the mill. The reduced production was also the
result of a longer plant commissioning phase exacerbated by severe wet weather
conditions and southern Africa-wide fuel shortages.

'Production will increase from current levels as we introduce and test the
correct screens for the economic cut-off, introduce fuel-efficient conveyors to
replace the existing slurry pumps and other measures to produce consistently at
a higher level. These changes will be introduced as we mine through the
weathered surface kimberlite and will be completed by mid-year, at about the
same time as the removal of the surface kimberlite is completed. '

For further information contact:

Kerry Spencer, European Diamonds +44 (0) 7739 827 231
+44 (0) 1727 852 417

Sarah Samworth, First City Financial Public Relations +44 (0) 20 7436 7486
+44 (0) 7977 276 023

Roy Spencer, CEO, European Diamonds: +44 (0) 1727 852 417

James Cable, Finance Director, European Diamonds: +44 (0) 20 7529 7502


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

Very disappointing RNS despite the gloss they have tried to put on it.

Dangling the carat
BY MARTIN WALLER

IS THE next speculative bubble on the Alternative Investment Market going to be diamonds? The market is booming, wildly risky companies are queueing up to float and one or two have the potential to be the next Regal Petroleum or White Nile, if my reading of the signs is correct.

Demand is soaring from the emerging middle class in China and India, explorers are looking in more and more dangerous places and investment banks are planning specialist diamond funds.

The statistics are awesome, according to AIM's house magazine. Just one in five of so-called kimberlitic pipes contain diamonds, and only 1 per cent are economic.

The London Stock Exchange, which runs AIM, is days from producing tighter rules governing mining stocks.

Don't say you haven't been warned.

Well EPD have done ANOTHER placing!

I find it absolutely astonishing that a company that has failed to deliver as many times as EPD, have raised over 1 million at 25p!

And the shareprice that was heading towards 20p is now UP at nearly 24p!

Dibbles' article above is probably pertinent to EPD at least in the diamond sector, IMO.

----------------------------------------------

European Diamonds PLC
16 March 2006


EUROPEAN DIAMONDS PLC

(the 'Company')

ANNOUNCEMENT

16 March 2006

Private Placement Financing

The Company announces that it has raised 1,335,000 by way of a private
placement of 5,340,000 new ordinary shares at 25p per share and has received the
subscription monies. In connection with this private placement, the Company will
also issue 5,340,000 share subscription warrants, subject to shareholder
approval at an Extraordinary General Meeting which is to be convened in the near
future. The warrants will be exercisable at 30p per share and will be valid
until 15 March 2008.


The funds raised through the private placement will be used to fund exploration
in Finland and Lesotho and for general working capital purposes.


Application has been made for these shares to be admitted to AIM and it is
expected that they will be admitted on 22 March 2006. Following the
subscription, the Company has in issue 62,406,283 ordinary shares.


The Company is producing from its Liqhobong Satellite Pipe in Lesotho and
recently held its first European sale of rough diamonds in Antwerp. It is also
carrying out sampling in Lesotho at its Main Pipe and exploration activities in
Finland, principally at Lahtojoki and Area 3.


European Diamonds PLC is listed on the Alternative Investment Market (AIM) of
the London Stock Exchange and its shares trade under the symbol EPD.


For further information please contact:


Roy Spencer, Chief Executive Officer

James Cable, Finance Director and Company Secretary

European Diamonds PLC

Tel: +44 (0) 20 7529 7502

Fax: +44 (0) 20 7491 2244

e-mail:

enquiries@europeandiamondsplc.com

website: www.europeandiamondsplc.com

andy

you were predicting a heavily discounted placing on another thread.you were wrong

How does one spell schadenfreude?

Andy, I guess the private placees were told a little more information about prospects that us mere mortals! Seems a positive signal, although I remain out at 25.76p for the moment.

sd

How much did they get for 10,000 carats in first d/sale 2006in Antwerp,is there support at 20p.on s.p. chart,perhapsthey had teething problems starting during the last 6 monthes,annual target carat prodn.290,000 appears v/ambitious at this stage,maybe hope for future improvement since now up and running in 2006andf/dimond sale,any views Andy.

goon39,

I also predicted the placing, and was told I was wrong, but I turned out to be right!

I seem to remember others telling me there wouldn't be one!

And if the placing was done when the price was 30p, in January, it WAS discounted!

Stockdog,

Check the chart, EPD was run up to 30p in January, and has since come back down!

I wonder when the placing was done?

I wonder what the price was then?

Andy, I'm very much aware of the chart - interesting times.