African Diamonds PLC
23 January 2004

AFRICAN DIAMONDS plc

Contacts:

John Teeling, Chairman Tel: +353 87 2581178

Jim Finn, Director Tel: +353 86 2581178

Redleaf Communications

Nick Lambert Tel: +44 (0) 7811 358 764

www.afdiamonds.com
23rd January 2004

AGM STATEMENT AND TRADING UPDATE

The following highlights will be announced by the Chairman of African Diamonds
plc, John Teeling, at the company's Annual General Meeting, which is due to be
held at 12.30 pm today.

Production

African Diamonds will be producing gem quality diamonds within 8 weeks.

The 240 ton a day pilot mining plant on Pipe 3 in Koidu, Sierra Leone will
be operational in March. Initially we will process 10,000 tons to establish
the grades.

We have high hopes for this plant. The new DiamondWorks mine on Pipes 1
and 2, three kilometres away, is reporting outstanding grades of 67 carats
per hundred tons, as well as finding 25 plus carat stones. Koidu produces
some of the highest quality diamonds in the world. Pipe 3 has every chance
of becoming a high grade commercial mine.

At Kolo, in Lesotho, production will commence on our 55% owned joint
venture, in the 2nd quarter of this year. Initially a total of 30,000 tons
will be mined, from which we expect to recover 5,000 carats including some
large stones. This too is expected to continue into full commercial
production.

Drilling results

We are getting spectacular results from our kimberlite dyke mapping
and sampling programme in Sierra Leone. So far we have mapped 11.5 kilometres of
dykes averaging 1 metre wide. Early stage analysis suggests grades of 1 carat
per cubic metre. Our neighbour, Mano River Resources is finding similar results
on an adjacent licence. If confirmed we have the potential for a mine of high
quality.

In March we will report detailed results from our drilling programme
on 5 kimberlites on our Orapa Licence. We already reported the discovery of two
high quality diamonds from pipe BK10. More will emerge from the detailed
analysis. Expectations at this time are to move to trial mining on BK10.

The search for the lost Orapa alluvial diamonds continues. The 42 holes drilled
in Serowe Botswana are being analysed. We know that we have found river
channels. We are now looking for Orapa gravels and diamond indicators in the
channels. Follow up work will continue during the year to look for Plunge Pools,
which may hold large, gem quality stones. This project has the potential to be a
company maker.

An extensive sampling programme is underway on our three Guinea alluvial
licences. By midyear we will have a resource estimate on the Bomboko and Seria
licences. We have already recovered diamonds from this area.

Corporate

We are at an advanced stage in negotiating an exploration joint
venture on certain of our properties. I hope to make an announcement shortly.

We are also at an early stage in discussing possible joint activities
with a diamond-mining partner.

The funds we received last year will last until June. We have been
offered funding for our on going work but we are reluctant to issue shares at
present prices given the expected flow of good news.

Conclusion

We have had a very good first year as a listed company. It is difficult to
rank the prospectivity and value of our various properties but the
spectacular grades being obtained around us in Sierra Leone offer massive
upside.

We are very well placed with an excellent portfolio and growing interest
in our company.

African Diamonds is a diamond exploration company traded on the AIM market.
Ticker symbol (AFD)

"> ">

African Diamonds PLC
26 January 2004

Further to the announcement made earlier today, African Diamonds plc announces
that it is planning to seek a secondary listing of its ordinary shares on the
Botswana Stock Exchange. The Company is currently in discussions with the
Botswana Stock Exchange and expects that admission of the ordinary shares will
take place and dealings will commence on or around 17 February 2004.


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


Risen nicely on opening this morning

African Diamonds PLC
04 February 2004



Further Orapa Drilling Results

Diamonds found on new Pipe

African Diamonds is pleased to announce the recovery of 2 diamonds from drill
samples of the Orapa AK9 kimberlite in Central Botswana. The recovery of
diamonds from AK9 at this preliminary stage of processing is significant as
there is no record of diamonds being recovered from this kimberlite. This
follows the findings of two gem quality diamonds from similar samples of
kimberlite BK10 in December 2003.

AK9 is a two-hectare kimberlite located 15 kilometres to the south east of the
main Orapa AK1 kimberlite, currently producing 15 million carats a year and is
one of 21 kimberlites known to occur within African Diamonds prospecting licence
number 4/2002.

Four of these kimberlites, BK16, AK8, AK9 and AK12 were drilled in October of
2003 and are currently being analysed. This material is being pre-concentrated
in the field using a small jig plant in preparation for transport to an X-ray
facility in South Africa for final Diamond recovery.

The details of these diamonds are:

Hole No Depth Diamonds

AK9/H4 20 - 40 metres 0.46 carats grey industrial
AK9/H4 80 - 100 Metres 0.07 carats white gem

The recovery of the 0.46-carat diamond from the 1 cubic metre sample comprising
the 20 - 40 metre depth interval, equates to a grade of 19 cpht., which if
maintained would be commercial. Processing is continuing and the final results
of this exercise are likely to be available by the end of March.

John Teeling, Chairman of African Diamonds Plc said, 'This discovery is an
unexpected bonus. AK9 is a large pipe with no known history of diamonds. We have
now proven it to be diamondiferous. We are very confident that the X-ray
analysis will find more diamonds on AK8 and on BK10'.


Contacts:

African Diamonds Plc
John Teeling Tel: +353 87 2581178
Leon Daniels Tel: +267 24 40252

Rowan Dartington
Ian Rice Tel: +44 (0)117 933 0020

Redleaf Communications
Nick Lambert Tel: +44 (0)7811 358764

Excellent few days for this and happily up around 100% since my buy on 26/01. Did you manage to buy in earlier Janus.

Cheers for your thread alerting me to this.

Are the MM's are begining to tree shake week buyers. Hold onto your shares, don't let Botswana share buyers have them.

This stock is a real gem, bought 30,000 shares at 23p and still holding.

AT 74P BUYING PRICE IS IT STILL A GOOD PRICE TO PAY FOR A SHARE LIKE THIS OR IS IT TOO LATE?looks as thier is more to come.any advice.

Ateeq..........
This is a difficult call to make.
It could go in either direction by 10 - 15% as new buyers feel they have missed out {perhaps like yourself... I presume.)...... while earlier holders will not be able to resist a good quick profit.
My advice....... but the decision is yours, only go in now if you can constantly monitor the price. This is because I feel that it could easily go up 10p during the day and yet end the day down.
Good luck to all existing AFD holders.

thanks for the advice,as you say its a difficult call to make,but it will be interesting to see what happens in the first hour of trading TOMORROW. as the price was shooting up at one stage i thought it might hit 90p ,but settled at 74p,still a very good day for the afd holders.and good luck to all the afd holders.yes i missed the punt,as i went for african gold instead.thanks anyway AMARDEV.

Ateeq...............
Most things African seem to be flavour of the week, at the moment.
Since you opted for AFG, and hopefully you're in profit, perhaps you can give us your views on that.
If you don't mind me asking.....what sort of quantity of stock do you go for on these more speculative types?
All the best.

African Diamonds and Mano River Poised for Growth argues Charles Wyatt of www.minesite.com

Most of 2003's winners in London's junior mining sector were mine development stories, but 2004 looks like being different. The sector is now at an interesting stage with lots to go for. Now, for the first time in nearly a decade, investors are anticipating drilling results, and for those few companies which actually know how to direct these drills, the rewards may be very large indeed. But, as always, there is scope for the lucky adventurer to make good and that, fundamentally, is why mining investment is so fascinating. African Diamonds


One company that has come a long way in a short time is African Diamonds. This company listed on AIM last summer at 7p with interest focused on the drilling due to be carried out on its Serowe licence in Botswana in a search for alluvial diamonds. This licence is some 100 kilometres south east of De Beers' prolific Orapa kimberlite diamond mine and is thought to cover ancient palaeo alluvial channels which drained this primary source. So far no alluvials have ever been found which could have originated from Orapa, but this is probably because the covering of Kalahari sediment is so thick. In the meantime the company has found some diamonds while drilling kimberlites on its Orapa project.
African Diamonds also has kimberlite Pipe 3 at Koidu in Sierra Leone.. This Pipe has now been dewatered and the kimberlite exposed at a depth of 30 feet . A ramp has been completed to give access to what is effectively a quarry and a 240 tonne/day dense media separation plant has been shipped up from South Africa. The idea is to take a 10,000 tonne bulk sample and, if warranted by the results , enlarge the plant and continue mining.
At the time of its AGM last month John Teeling, chairman of African Diamonds, predicted that the company would be producing gem quality diamonds within 8 weeks. He drew attention to the fact that the new DiamondWorks mine on Pipes 1 and 2, three kilometres away, is reporting outstanding grades of 67 carats per hundred tonnes, as well as finding gemstones weighing more than 25 carats. .He also forecast that production would commence on the 55 per cent owned joint venture at Kolo in Lesotho, in the 2nd quarter of this year. Initially a total of 30,000 tons will be mined, from which African Diamonds expects to recover 5,000 carats including some large stones. This too is expected to continue into full commercial production.
John Teeling concluded by saying that spectacular results were being obtained from the kimberlite dyke mapping and sampling programme in Sierra Leone Early stage analysis suggested grades of 1 carat per cubic metre and Mano River Resources is finding similar results on an adjacent licence. Mano River Resources


In fact Mano River is a company well worth considering by investors if they feel that African Diamonds has soared far enough for the time being. In the time that the share price of African Diamonds has risen from 7p to over 50p, that of Mano River has advanced more sedately from 4p to 10.5p. It is exploring for world class gold and diamond deposits and already has close to one million ounces of gold in estimated resources, a cluster of diamondiferous kimberlites and a number of highly attractive early stage diamond and gold targets in Sierra Leone, Liberia and Guinea. There is now an increasing market recognition of the recent positive evolution in the regional, political and economic landscapes of these countries, and the rating of Mano River is starting to reflect this.
The company has recently been rewarded by the Ministry of Natural Resources for its loyalty to Sierra Leone with the award of a 9,700 sq km licence. This licence covers the whole of the south eastern quadrant of the country and is underlain by the ancient Archaean Man Craton, which is highly prospective for diamonds, gold and base metals. It extends from the world-renowned Kono Diamond Fields, where Mano already has licences, to the Liberian border. In the west of Liberia Mano discovered the first ever known diamond-bearing kimberlite pipes, now under Joint Venture with Trans Hex Group of South Africa. This is quite a track record and Mano is already discussing a possible joint venture over the new licence to include an airborne geophysical survey.
Tom Elder the CEO, was at Minesite's Forum on Tuesday and confirmed that the licence actually covers nearly 15 per cent of the whole of Sierra Leone and consists of highly prospective, under-explored, diamond bearing terrain. He has a good team and will make the most of this opportunity. Why diamonds, you may ask, when base and precious metal prices are performing so well? James Picton, one of the world's leading diamond analysts, is best qualified to answer this as he has devised a chart which shows that diamonds are outpacing gold in price and should continue to do so. He reckons that we are facing a decade during which production of rough diamonds will be insufficient to meet demand. Last year , according to Picton, rough prices rose by 20 per cent and he expects something similar in 2004. In such a situation there is bound to be investor interest in the most successful explorers and these are more likely to be in Africa than Canada or Australia. Key Data


African Diamonds (AFD)
Market: AIM
Spread: 80p-82p
Market Cap: 43.5 million pounds
NMS: 3,000

Mano River Resources (MANA)
Market: AIM
Spread: 12.5p-13p
Market Cap: 20.4 million pounds
NMS: 1,000
Veteran mining writer, Charles Wyatt edits www.minesite.com the definitive source of information about small cap mining stocks. The site is free to register with and members gain access to regular forums where they can meet the men behind the stories. To find out more click here [links to http://www.minesite.com].

any comment on MANA company?

Don't ignore the diamond miner, FDI Firestone Diamonds - the senior of the exploration miners in Africa. FDI mkt cap around 14M: has 2 working mines producing large and small gems, and a share of a south african mine, plus the possibility of a JV in another territory ( Mopipi). FDI is a more mature company, and actual growth and gains are much more likely in the short to medium term. I hold at 42p.

What is the consensus for AFD's near future? They seem to have a strong position and plenty of potential, but now they have risen to 70odd pence are they over valued or just about right?

From UK Analyst posted on another board.

African Diamonds

Zak: African Diamonds (AFD) is perhaps the star of the African show in the sense that this is the stock that I have been receiving the emails about. It has also been something of a standout technically in the sense that post October we saw a very tight 20p - 25p range, with the breakout from this being particularly powerful as one would expect after such a log jam. The magic number to conquer was 25p and if anything, the pace of the rally seems to be accelerating.

It does not appear to be too much to suggest that the next month or so will see the target projected by the October resistance line at 115p hit quite easily. The only problem is of course where to place the stop loss. At this point the answer looks to be either a two day close below the Thursday low at 55p or the intraday February support at 45p for those who do not want to trade the stock too tightly.
From UK Analyst posted on another board

Tom: This is a John Teeling stock which at 73.5p is valued at 40 million. I remember laughing at broker research valuing this one at almost 100p a share when the stock traded at 7p. Amazingly that research now looks sensible. The company's exploration activities at Orapa in Botswana have located not only kimberlites but also actual gem quality diamonds (4 so far). No-one is saying that this is definitely a commercial find but the evidence that it may be is mounting. If it is not 20p here we come. But if it is commercial then the shares could multiply again from here. This really is a "glory play" for total gamblers. For what it is worth, and the stockmarket reporter on UK-Analyst reported this yesterday, the word in Dublin is that a fund raising at 50p is on the cards once the shares hit 100p which is expected soon. If you are tempted, go in with your eyes wide open.

DOES ANY ONE THINK TODAY WAS A PROFIT TAKING DAY FOR AFD,OR IS IT OVER VALUED AT PRESENT?

Profit taking and may be over overvalued until actual production results are announced.

Botswana devalued its currency 7.5%. Impact on AFD good or bad? Lots of punters reportedly took profits and switched into MANA ahead of this week's big African Mining Conference (Feb 10-12).

Isn't it March that AFD expect results from their drilling samples. Anyone have any ideas as to the share price direction 'till then? I regret not having profit taken last week. I've got to wait for the next rise now!

Two things to consider Highride, either the MM's have been very short of stock and are tree shaking or investors are begining to take profit, hence the drop in price.

If the drop in share price has triggered your stop loss limit then perhaps close your long position and short with a spread bet or CFD and then buy back in later as once further news the price will inevitably leap back up. Only an opinion but LOL.