BDY Brazilian

RNS Number:5541K
Brazilian Diamonds Limited
17 October 2006

                           BRAZILIAN DIAMONDS LIMITED



 SIGNIFICANT MICRO-DIAMOND COUNTS RECEIVED FROM LARGE REGIS KIMBERLITE DRILLING



Vancouver, British Columbia, Canada. October 17th, 2006.  Brazilian Diamonds
Limited (BDY: TSX/AIM) is pleased to announce the recovery of 129 micro-diamonds
in samples from the first hole in a series of deep diamond drill tests of the
Regis kimberlite pipe in central Minas Gerais.



This very large kimberlite crater complex (greater than 120 hectares of surface
expression) was originally discovered in the mid-1970s and surface exposures
near the edge of the body were previously sampled, apparently without the
recovery of diamonds.  Subsequently, using both acquired and in-house data
sources, Brazilian Diamonds identified the Regis kimberlite pipe as one of its
exploration priorities based on its indicator mineral geochemical signature,
apparent emplacement age and very large size.  Using a combination of surface
geologic mapping, ground geophysics and indicator mineral geochemistry, the
Company was able to identify a central, untested pipe-like zone of approximately
20 hectares in size within the larger Regis kimberlite and began a programme of
drill testing in June 2006.



The first two drill holes (RDH01 and RDH02) were completed in August 2006 to
depths of 317 metres and 251 metres respectively.  Both holes were drilled
vertically and entered previously untested primary pyroclastic kimberlite.
RDH01 reached the zone beneath the overlying re-sedimented crater complex
deposits at 113 metres and RDH02 at approximately 88 metres.  The discovery of a
source of primary pyroclastic kimberlite was the primary objective for both of
the deep drill holes as this was considered likely to yield a more
representative sample of the kimberlite than the re-sedimented material
encountered above.



Drill core from RDH01 was split, bagged into 8 kg batches, and shipped to the
Saskatchewan Research Council (SRC) in Saskatoon, Saskatchewan for micro-diamond
analysis utilizing the caustic fusion process.  SRC is a highly reputable
independent Canadian laboratory serving the diamond exploration industry and is
ISO 17025 certified for its caustic fusion methods.



Based on this testing, micro-diamonds have now been recovered from samples of
the pyroclastic kimberlite below 113 metres to the bottom of drill hole RDH01 at
317 metres.  The 129 micro-diamonds in these samples were recovered from 348.75
kg of tested core taken from beneath the re-sedimented crater deposits.
Cumulative counts from the samples are presented by square mesh screen size in
Table 1.  The bottom screen size used for all samples was 0.075 mm and two of
the stones recovered were greater than 0.5 mm in one measured dimension.



Table 1: All results from Regis Kimberlite 113 to 317 metres were sized using
square meshed screens.


0.600 mm
0.425 mm                            1
0.300 mm                            1
0.212 mm                            9                          348.75 kg
0.150 mm                            19
0.106 mm                            37
0.075 mm                            62
          total                    129







The most prolific sample interval yielded 92 micro-diamonds from 16.25 kg of
kimberlite between 301.7 to 311.5 metres.  The largest stone recovered in this
interval remained on a 0.300 mm screen.  The second most prolific interval
yielded 20 micro-diamonds from 48.7 kg at the top of the pyroclastic kimberlite
(113.4 to 142.8 metres).  The largest stone from any of the samples, which
remained on a 0.425 mm screen, was recovered from this interval.



The concentration of almost 90% of the recovered micro-diamonds from two
relatively short intervals of the core suggests the possibility of having tested
multiple phases with markedly varying diamond contents within the pyroclastic
kimberlite unit.  This possibility will be further investigated once results are
available from the second drill hole at RDH02 which was located 100 m east of
RDH01 and nearer to the center of the pipe as determined by ground based
geophysics.



Core samples from the second drill hole RDH02 have now been shipped to SRC in
Canada for caustic fusion testing.  The results from this testing are expected
to shed further light on the possibility of higher grade phases within the very
large Regis kimberlite pipe.  The results from other targets in the region are
also expected soon from SRC.



Dr. Harrison Cookenboo (P.Geo) and Consulting Geologist is the Qualified Person
as defined under National Instrument 43-101 responsible for the technical
disclosure in this release, and has reviewed and approved the contents of this
release.



Commenting upon these important results, the Chairman of Brazilian Diamonds,
Kenneth P. Judge said "We believe that the recovery of significant micro-diamond
counts from the deep drilling of the Regis kimberlite represents confirmation of
the importance of our Regis exploration programme.  It further validates our
regional exploration geologic model which is currently being applied to several
other important targets within the Company's portfolio in Minas Gerais.  Dr.
Cookenboo and our highly experienced team of diamond exploration professionals
deserve great credit for making what appears to be potentially a significant
discovery for the Company and Brazil's diamond sector in general."



Editors' Note:-



Brazilian Diamonds is a leading Brazil-based exploration company focused on the
discovery of kimberlites on its extensive portfolio of properties in the States
of Minas Gerais and Bahia, with the goal of becoming a significant producer of
diamonds.



The Company is awaiting final approval before commencing the environmental
licensing process for development of the Canastra 1 kimberlite body for which
mine feasibility work has already been completed and the required Mines
Department approvals are already in place. It is intended to bring Canastra 1
into production once this licensing process is completed.



The Company has recently acquired the Chapada Diamantina project in Bahia from
De Beers which includes the diamondiferous Salvador 1 kimberlite.  Plans are
underway to undertake a large bulk sample at Salvador 1 utilising a 15 tonne per
hour DMS treatment plant, which is currently located at the Company's Santo
Antonio do Bonito property.  De Beers retains a right to reacquire up to a 40%
interest in any kimberlite found containing more that 200 carats of diamonds on
the Chapada Diamantina properties.



The Company has a fully operational diamond separation/analysis laboratory at
Patos de Minas, Minas Gerais which is strategically located near its properties
in the Santo Antonio and Coromandel areas. The Company has a highly experienced
team including four geologists almost all of whom are located at the Company's
facilities in Brazil.


The Company's strategy for non-core activities on its properties is to form
joint ventures.  A Cdn$1,000,000 feasibility study is currently underway for a
joint venture for the mining of alluvial diamonds on its properties in the Santo
Antonio river drainage. The joint venture involves two important Brazilian
companies: CODEMIG, the state owned mining development organisation and
Mineracao Rio Novo Ltda., a wholly owned subsidiary of Andrade Gutierrez SA, one
of Brazil's largest civil engineering firms and an existing large scale, dredge
based producer of alluvial diamonds.



For further information including location maps and other details on the
drilling programme mentioned in this news release, please refer to the Company's
website www.braziliandiamonds.com or contact:




Brazilian Diamonds Limited

Ken Judge, Chairman                                             + 44 7733 001002

Stephen Fabian, President & CEO                                + 55 31 8814 5111



Investor Relations

Europe                                                         + 44 20 7590 5503

North America                                                     1 866 689 2599

Hanson Westhouse LLP (Nomad to the Company)                    + 44 113 246 2610

Tim Feather

Teather & Greenwood: Landsbanki (Broker to the Company)        + 44 207 426 9000

James Maxwell






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