BDY Brazilian

RNS Number:9430Z
Brazilian Diamonds Limited
10 July 2007


                               BRAZILIAN DIAMONDS

         DIAMONDS RECOVERED IN FURTHER TESTING OF SALVADOR 1 KIMBERLITE


Brazilian Diamonds Limited ("Brazilian Diamonds" or the "Company") BDY:TSX & AIM
is pleased to announce that replication sampling of the Salvador 1 kimberlite
prior to the commencement of bulk sampling operations, has returned significant
diamond counts.  Preliminary results from the processing of three samples each
weighing one tonne have yielded a total of 54 diamonds.



These samples were recently collected from the upper part of the Salvador 1
kimberlite with the intention of replicating results from an initial 580 kg
samples collected by the Company in late 2006 which yielded nine diamonds
including the largest weighing 0.52 carats.  This sampling followed careful
removal of the overlying alluvial deposits and the new samples were then
recovered at depths of between 0.5 and 1.5 m beneath the surface of the
kimberlite.



Three samples were collected from each of two sites under the supervision of the
Company's Consulting Geologist, Harrison Cookenboo (Ph.D., P.Geo.) and the
Company's  Chief Geologist Jefferson Miranda (Ph.D., CREA) and are described as
extensively clay altered, grey to brown kimberlite.



The six samples collected from the two sites were taken from progressively
greater depths and the first three samples tested, yielded diamonds from all
three levels.  Results from the remaining 3 replication samples are expected in
the next two weeks.



The 54 stones together weigh 0.23 carats and range in size from the bottom
screen size of 0.250 mm (52 stones) up to a 1 .0 mm mesh screen (2 stones). By
screen size, 32 stones remain on a 0.25 mm screen, 10 on the 0.42 mm screen, 10
on the 0.60 mm screen, and 2 on a 1.0 mm screen.



These results compare favourably with much larger tests completed in the 1990s
by De Beers.  The De Beers tests are reported to have recovered a total of only
84 diamonds from 133.3 tonnes using a 0.5 mm bottom size screen.



The diamonds were recovered using methods typical of indicator mineral recovery,
including dis-aggregation screening, heavy liquid separation and visual recovery
under an optical microscope.  Processing was completed at the Company's Patos de
Minas, Brazil, laboratory which is ISO 17025 rated for indicator mineral
recovery.  Good recovery for diamonds is expected from this processing for the
0.425 mm screen size, with diminished recovery for smaller sizes down to the
bottom screen size of 0.250 mm.



The Company is presently preparing for a much larger bulk sample of the Salvador
1 kimberlite which will comprise six pits of approximately 650 tonnes each.
Results from the first of the bulk sample pits are expected in the fourth
quarter of 2007.



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.





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 the environmental licensing process is completed.



The Company's Salvador diamond project in Bahia includes the diamondiferous
Salvador 1 kimberlite.  This project was acquired from De Beers which retains a
right to reacquire up to 40% of any kimberlite found on the Salvador properties
which is confirmed to contain more that 200 carats of diamonds



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 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 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 organization 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 refer to the Company's website www.braziliandiamonds.com
or contact:


Brazilian Diamonds Limited

Ken Judge, Chairman                                                   + 44 7733 001 002
Stephen Fabian, President & CEO                                       + 55 31 8814 5111

Investor Relations
Europe                                                                + 44 207 590 5503
North America                                                         1-866-689-2599

Hanson Westhouse Limited (Nomad to the Company)                       + 44 113 246 2610
Tim Feather/Matthew Johnson

Teather & Greenwood Limited (Broker to the Company)                   + 44 207 426 9000
Tom Hulme








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