Gravity Diamonds Limited
08 April 2005


ASX & AIM (GRN)

APRIL 8, 2005


GRAVITY DIAMONDS' DEBUT DAY ON AIM

SEEKING KIMBERLITES IN AUSTRALIA AND DRC WITH LEADING-EDGE
SKY SEARCH TECHNOLOGY DEVELOPED BY BHP BILLITON

First Drill Holes In Northern Territory Project Hit Diamondiferous
Kimberlites

Big Exploration Programme Initiated To Generate Further Kimberlite
Targets

Results From Congo Sampling Available Later This Month

Gravity Diamonds Limited today listed on AIM by way of an Introduction in a move
that the ASX-listed company anticipates will attract a wider global focus and
attention to its diversified diamond exploration activities. Approximately
58p.c. of the company is held by European investors with an interest in the
diamond industry. BHP Billiton holds a 9.6p.c. interest and management and
family around 4p.c.. The company has A$9.9m cash.

Gravity is exploring for diamonds in Australia and the Democratic Republic of
Congo (DRC), two of the world's principal diamond-producing countries. These
interests balance the low sovereign risk but higher geological risk of the
mature exploration terrains of Australia against the high sovereign risk but
lower geological risk and greater potential for early major discoveries in the
DRC.

Key to Gravity's business strategy is its strategic alliance agreements with BHP
Billiton where Gravity's managing director Mr Phil Harman was the former chief
geophysicist and exploration manager for South America. The Australian programme
is based on deployment of the FALCON(R)* airborne gravity technology for
exploration whilst the DRC programme gives Gravity access to highly prospective
diamond exploration ground previously unexplored by modern techniques to which
the FALCON(R) system can also be applied. Both agreements give BHP Billiton the
right to buy back control and management of any discovery at an early stage
under terms favourable to Gravity. The payback cash consideration is 4-5 times
the exploration costs plus a royalty and/or a retained equity interest.

In Australia, Gravity has exploration agreements in prospective areas which have
a considerable history of conventional exploration and in each case, the company
may earn a minimum 50p.c. of new discoveries. It has three projects in
Australia: the Northern Australia Diamonds Project with Rio Tinto Exploration in
the Northern Territory; and two projects in Western Australia at Ellendale with
Blina Diamonds and North King George with Striker Resources.

The Northern Australian project is the largest, covering some 40,000km2 of
tenements in a number of different areas. In 2003 the FALCON(R) system was flown
over seven prime areas of interest covering about 3,500km2 which were selected
on the basis of the large volume of historic diamond sampling data available.
Follow-up of priority FALCON(R) targets began in the 2004 field season using
loam and drainage sampling and in several areas where surface access was
possible, RC drilling was undertaken.
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GRAVITY DIAMONDS 2

In January 2005, Gravity announced that two shallow holes drilled into FALCON(R)
target ABN21 in the Abner Range, near McArthur River had intersected a new
diamond-bearing kimberlite. A total of 147 microdiamonds and two small
macrodiamonds have been recovered from these holes and almost all of the stones
are whole, unresorbed and colourless of potential gem quality. Further work to
determine the size and grade of the discovery will start this month. At least 20
other similar FALCON(R) gravity features in the vicinity of ABN21 will also be
followed-up.

A FALCON(R) survey in late 2003 located a number of new targets on Blina
Diamonds' Ellendale project. That company has since completed first-pass
drilling of the various targets and so far has identified three new small pipes
and a new palaeo-channel. Bulk sampling in 2004 showed that, although the pipes
are diamond-bearing, the average grade of the bulk samples was considered too
low to be economic. Further testing of the palaeo-channels and other targets is
planned, however.

A FALCON(R) survey over a portion of the King George North area in the Kimberley
region of WA in 2003 identified a large number of high priority targets. Surface
samples were collected from 12 of these targets and eight have since reported
positive for Kimberlitic indicator minerals or microdiamonds.

KASAI CRATON INCLUDES SOME OF WORLD'S BEST DIAMOND GROUND

The agreement with BHP Billiton to explore for diamonds in the Kasai region of
the DRC was signed in August 2004. This area covers part of the Kasai Craton and
lies immediately along trend from the rich diamond provinces in Angola and is
considered to include some of the most prospective, effectively untested,
diamond exploration ground in the world.

The proposed exploration programme targets new kimberlite pipes and will employ
broadly-spaced surface sampling for kimberlitic indicators to locate prospective
areas, followed by airborne geophysics to identify specific kimberlite targets.
Dependent upon results, and subject to government approvals, the FALCON(R)
system may be deployed for specific target generation in the future.

During the 2004 field season, Gravity completed a kimberlitic indicator mineral
sampling programme using three helicopter-supported crews over more than
20,000km2 of the tenements of the JV ground in the Kasai Craton. Numerous
artisanal workings were encountered, thus confirming the widespread presence of
alluvial diamonds in the area. Sample results are expected later this month.

An aeromagnetic survey over a 4,900km2 section of the sampled area will be flown
shortly to objective of pinpoint magnetic kimberlite targets that could be
potential sources of the alluvial diamonds.

The company has an exploration budget of US$5-6m for 2005 for an intensive work
programme which is already underway. This includes an aeromag survey in the
Kasai area of the DRC and follow-up of the result, a ground gravity survey in
the Abner Range, with drilling and bulk sampling to follow in mid-year.
Gravity has 119m ordinary shares in issue and at the current share price of
A$0.76 is capitalised at A$91m (36m). The company has a strong board of
directors, chaired by Bobby Danchin, an experienced diamond explorer and former
director of global exploration for Anglo American. Phil Harman spent 34 years
with BHP and executive director Nic Limb is a proven business innovator and
former managing director of New Hampton Goldfields Ltd.

* FALCON(R) was developed at a cost of US$250m. It is a pioneering exploration
tool that has been refined by BHP Billiton from technology that was originally
created by the US Navy. FALCON(R) enables airborne collection of gravity
measurements previously limited to ground deployment and makes it possible to
survey much larger areas in a significantly shorter time. Gravity measurement
reveals features that have a contrasting density with the surrounding rocks and
has particular application to diamond exploration and the search for kimberlite
pipes. The FALCON(R) system is deployed in a single engined turbine Cessna
aircraft which is also equipped to collect magnetic and other geophysical data.

Further Info: Phil Harman, Managing Director, Gravity Diamonds Ltd.
Tel:00-613-9909-7655
Ron Marshman/John Greenhalgh, City of London PR Ltd.
Tel: 020-7628-5518


http://www.gravitydiamonds.com.au/