Abaete

Brazilian Diamonds has purchased two extensive diamond exploration data sets from the De Beers Group. The data sets include exploration interest in the Santo Antonio do Bonito and Abaete River drainages in Minas Gerais, Brazil. With the purchase the company has added proprietary airborne geophysics, 63,000 samples, and 284,908 microprobe analyses over their three highest priority areas covering 1.2 million hectares.

Brazilian Diamonds will commence trial mining at the company's 100% owned Abaete alluvial diamond project. Primeira Gema Comercio, Importacao e Exportacao Ltda will conduct the mining and will receive a gross royalty on the value of diamonds recovered. Primeira Gema has also been granted a six month option to acquire the project.

Black Swan has selected Gemcom to prepare a definitive mining plan for the Canastra 1 kimberlite pipe in Brazil, due to be completed by mid June. The plan will be presented to the Brazil Department of Mines for final approval. Final preparations for the environmental licence to re-commence work at Canastra 1 are now being completed. It is expected that this application will be lodged with the relevant environmental agencies in early May. Work is underway to commence the re-treatment of the mineral concentrate tailings which have been stored at the Canastra 1 site since the original bulk sampling undertaken by De Beers. The company has also modified terms of the Abaeté Project agreement signed with AKD Limited to permit a more rapid transition of the project to full-scale production once bulk sampling has been completed. Both parties have recognized that the current bulk testing plant is insufficient in size to enable the required bulk sample to be processed within the original given timeframe. Under the terms of the variation, AKD must now produce 500 carats of diamonds by November 3, 2003 in order to earn a 50% interest in the project, rather than the 1000 carats by August 3, 2003 to earn a 60% interest.