Im beginning to feel very confident in this company and this latest acquisition could really see this company become a 'Dream Stock'. Its a long term punt with hopefully profits likely to come through starting 2004.



European Diamonds PLC
29 September 2003


EUROPEAN DIAMONDS PLC


PRESS RELEASE


Proposed acquisition of Minegem Inc

1 million private placement

Finland Exploration update


29 September 2003


Minegem Inc.:


European Diamonds PLC ('EPD') is pleased to announce its intention to acquire
all the issued common shares of Minegem Inc ('Minegem') a Canadian company
listed on the Toronto TSX Venture Exchange. Minegem owns interests in two
proven diamond bearing kimberlite ore bodies located in the Kingdom of Lesotho
in Southern Africa.


EPD is offering one ordinary 5p share for every 10 Minegem common shares. Based
on EPD's closing price in London on 26 September 2003 of 70.5p per share, the
offer values Minegem at 3.5m (Cdn$7.9), a premium of 111% to Minegem's closing
price in Canada on 26 September 2003. In the event of full acceptance of the
offer, EPD will issue a total of approximately 4.99 million of its ordinary 5p
shares, which will represent approximately 20% of the enlarged EPD issued share
capital. The offer for Minegem ('Offer') is subject to the approval of EPD's
shareholders, a minimum level of acceptances by Minegem's shareholders of 50.01%
of Minegem's common shares, the admission to AIM of the EPD shares to be issued
pursuant to the Offer as well as other conditions generally applicable to the
takeover of Canadian listed companies.


Minegem has interests in a mining lease from the Government of Lesotho (GOL) for
exploitation of a high-grade diamondiferous kimberlite pipe designated as the
'Satellite Pipe Project', as well as an exclusive prospecting licence for a
larger diamond bearing kimberlite adjacent to the Satellite Pipe and designated
the 'Main Pipe Project'. The Satellite Pipe, in which Minegem has a 65%
economic interest, is projected to produce 290,000 carats per year and subject
to the provision of the necessary funding, could be operational within nine
months from the start of construction, which is expected to be in early 2004.
Revenues from the Satellite Pipe are projected at US$12 million per annum with
an initial life of mine of 5 years. The 'Main Pipe Project', in which Minegem
has a 100% economic interest, is a 9.5 hectare kimberlite pipe, which has
already been the subject of a 13,500 tonne bulk sample that confirmed its
potential to generate 700,000 carats per year providing annual cash flow of
around US$45 million.


Minegem is required by the GOL to raise the required finance to develop the
Satellite Pipe by 12 December 2003 in order to avoid the loss of its mining
lease on that project. EPD has arranged a US$10m credit facility to fund the
development of the Satellite Pipe, subject to the acquisition of Minegem by EPD,
which it believes will satisfy the requirements of the GOL.


EPD commissioned A C A Howe International Limited, independent geological
consultants, to provide an independent technical review of the Lesotho
kimberlites of Minegem. This review will be included in the circular, referred
to below, which will be issued to EPD's shareholders shortly.

GF

This would be great news. Have held this stock for ages with the suggestion there might be "rocks" found in May - but that was May 2003, so hope this find in Finland is confirmed!