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

Thanks, Andy - that's a pretty good price I would say. Should give the SP a bit of support.

SD

SD,

Well let's hope so, some decent trades today, yet no real momentum in the price yet.

I agree, the 45p placing price will help.

European Diamonds PLC
26 April 2005


EUROPEAN DIAMONDS PLC

ANNOUNCEMENT

26 April 2005

Disclosure of share interest

The Company has today been notified that investment funds under the management
of DKR Saturn Management L.P. hold in aggregate 4,250,000 ordinary 5p shares
representing approximately 9.09% of the issued share capital.

For further information please contact:

Graham A Potts - Company Secretary
European Diamonds PLC
22 Grosvenor Square
London, W1K 6LF
Tel: +44 (0) 20 7529 7502

Aldwick,

Cheers.

Does anyone know whether these new shares are in the market today, as announced yesterday? Seems awful quiet....

philfolio,

Some of them are, and some aren't, as the company were only authorised to issue so many additional shares without an EGM, and the latest placing exceeds that.

As a result, they must have an EGM to agree on the issue of the non authorised additional shares, so theseadditional, so THESE shares are NOT in the market, but the ones they were authorised to issue as per previous AGM's ARE.

And what happened to Mine Start at the end of April? The stock looks moribund, perhaps until after the EGM at the end of May...a good opportunity to buy in the 30s?

phil,

No idea, to be honest.

I spoke to kerry Spencer, (as indeed did some other holders) a week or so ago, and she said the switch from exploration to production is not always clear, and therefore not easy to define and announce.

I pointed out that the price was drifting lower, and if they didn't announce, we could go much lower if the market thought they were failing to deliver.

She said she was "comfortable" with the end of April, so I empasised the need for an RNS.

So far no RNS, and I am considering lowering my holding, because any further delay could have a massive negative impact on the price IMHO.

let's see if we have any news tomorrow.

Did Kerry mention which year she was comfortable with?!

stockdog,

No, lol!

Sadly all mining comopanies seem to miss their targets, and EPD seem to bee no exception.

From a shareholder point of view, it is disappointing because the date is set by the company itself, and clearly they don't allow for possible problems, and then the market takes a negative view.

Griffin Mining (I don't hold) are a rare exception here IMO, as it would seem, they are opening on time and on budget.

Andy -

Well, some support buying today, could this be in anticipation? I also emailed the company last week and they replied, speaking only of 'second quarter' for minestart, so that suggests they are hedging their bets.

phil,

Well that would appear to be the case!

Still holding, but not as happy as I was.

Andy

remember a while ago we thought EPD would beat NML to production - well this month they've both lost their way a little.

Who will be first back on track do you reckon?

SD

Nice couple of sizeable (for today's overall volume) buys at the end of trading today. It will be interesting to see if the offer is still there at 40 tomorrow.

Hope it's EPD, sold NML today to pay for more SEO's

Stockdog,

Interesting question!

I still think EPD, but not as confident as I was previously!

I originally planned to top slice EPD profits into NML, but that may not be possible to do now, although NML's price is low enough to be bale to make a decent profit IF they finally deliver.

Well yesterday's gain has been lost again this morning, come on EPD, where's the RNS?

Andy, we may both be stop lossing out of NML into EPD's rise! lol

I'm not good at arriving at a balanced view in these dreary market days, so feel unsettled much of the time which I dislike.

However NML has remained firm at 3.75 bid and EPD has found support at 25p. If they don't go lower then one day they will rise. Do you think there is much downside risk left in them?

SD

Stockdog,

Well 'IF' EPD fail to deliver a minestart RNS by the end of May, we could see a dip towards 30p IMHO, although this is a worst case scenario, which I hope doesn't happen, obviously.

With regard to NML, it looks low at 3.75p BID, but 'IF' they were to do a placement at, say, 3p, then the price would drift down towards the placement price IMO. Again a worst case scenario IMHO, and they may borrow money rather then do a placing, in which case I see a very limited downside from the current price personally.

In fact today you can buy NML at UNDER 4p, despite the offer being 4.25, so it looks as though the MM's may have some stock to sell there.

Looks like we're headed to 30 in any case, I see no serious interest in buying