Everfor Diamonds plc - Geophysical Survey Results

The Directors of Everfor Diamonds PLC are pleased to announce that further results have been received from both the geophysical surveying and sampling programmes carried out in Everfor’s four licences within the Russian Federation.

• Over 50 geophysical targets of interest interpreted in the Ermakovskaya licence area
• High-interest magnetic targets noted in the Tulomo-Teriberskaya licence
• 389 indicator mineral grains recovered from 140 of a total 771 samples examined
• 35 positive samples contain multiple indicator mineral varieties
• A number of positive grain results are in close proximity to geophysical targets

SAMPLE RESULTS

Over 770 results have been received to date from the 3100 glacial sediment and stream samples collected in the four licences. A total of 140 samples are positive with kimberlite indicator minerals; all of the conventional indicator mineral species – pyrope garnet, picroilmenite, chrome diopside and chrome spinel – have been recovered. Of these positive samples, 35 contain multiple mineral grains, often an indication that the samples are close to source, although surface texture studies to be carried out on these grains will provide a more quantitative measure of probable transport distance. Microprobe analyses, to investigate the chemical composition of each grain, will be available from the end of March. These analyses will be compared to those of grains from known kimberlites to try to estimate the diamondiferous potential of the source rocks.

Over 70% of the results received to date are from the Ermakovskaya licence, with approximately 10% in each of the other three licences. Localised areas of high interest are already noted from these initial results in the Pulongskaya and Tulomo-Teriberskaya licences. Follow-up work in all of the high-interest areas in all of the licences will be prioritised to locate drilling targets.

GEOPHYSICAL SURVEYING

Interpretations of the sampling and geophysical results in Ermakovskaya and Tulomo-Teriberskaya indicate that even at this early stage, the source rocks of a number of geophysical anomalies require to be verified by drilling. In the first instance, geophysical targets hosted in the magnetically quiet background provided by the Riphean-age sandstones in the south of the Ermakovskaya survey area will be subject to a drilling programme before the Spring thaw in May 2005.

At the conclusion of surveying in the Ermakovskaya licence in November 2004, Fugro Airborne Surveys decided to leave its acquisition system in Russia to enable an early and smooth recommencement of surveying in early 2005. Fugro will mobilise this RESOLVEtm equipment in the third week of March 2005, weather permitting, to Everfor’s easternmost licence, Pulongskaya. The survey is planned to cover 760 sq km. Depending upon sampling results and the results of the current geophysical surveys, Everfor may commission an airborne geophysical survey over parts of its Varzugskaya licence.

The final data from a 2,000 sq km magnetic geophysical survey acquired late 2004 over Everfor's northernmost licence, Tulomo-Teriberskaya, is now available and will be interpreted as soon as possible. A number of high interest targets were observed during the quality control phase of the survey.

SUMMARY

These promising early results from both arms of the exploration programme will allow Everfor to refine its 2005 work programme so as to include activities previously planned for early 2006. Everfor’s management looks forward enthusiastically to its second year of exploration and to the early resolution of a number of geophysical and indicator mineral anomalies.

For further information, or to download the entire press release, please visit our website at www.everfor.com or contact:

Dr Sergey V. Kurzin
Executive Chairman
svkurzin@everfor.com

or

D J Duncan
Managing Director
djduncan@everfor.com

18 Upper Brook Street. • London W1K 7PU • England
Telephone +44 (0) 20 7514 0590 Facsimile +44 (0) 20 7514 0591

The Directors of the issuer accept responsibility for this announcement. Loeb Aron & Company Ltd., ("Loeb Aron & Co.") which is authorised and regulated by the Financial Services Authority, has approved this announcement for release on Newstrack. Loeb Aron & Co is acting as corporate adviser to Everfor Diamonds Plc and to no-one else and will not be responsible to anyone other than Everfor Diamonds Plc for providing the protections afforded to customers of Loeb Aron & Co or for providing advice in relation to any investment made pursuant to this announcement.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.