Everfor Diamonds plc - Exploration Progress

• 3,100 soil and stream samples taken since June 2004
• 2,200 samples received by specialist South African laboratory for treatment & analysis
• Aerial geophysical survey ongoing

The Directors of Everfor Diamonds PLC are pleased to announce that significant progress has been made in the work taking place within Everfor’s four licences in the Russian Kola Peninsula. These licences were acquired in March 2004, following Everfor’s incorporation in January 2004.

Everfor’s exploration strategy was to sample the areas of greatest interest, as defined by previous results, within each of the licences and to simultaneously carry out selected geophysical surveying over priority areas. This strategy is designed to shorten, as much as is feasible, the time taken to a first discovery of kimberlite. In contrast, many conventional diamond exploration programmes utilise geophysics only after sampling, thus extending the time taken to complete the reconnaissance and follow-up stages.

SAMPLING

Sampling by the Central Kola Expedition team for the four-month long 2004 field season began in June and was completed on 12th October, with a total of 3100 soil and stream samples having been collected from the four licence areas. This total is approximately 50% greater than was planned at the beginning of the year and exceeds the revised numbers planned by Everfor’s Chief Operating Officer during a technical visit in July. Quality control tests, by Donald Duncan carried out during that visit indicated that the samples were collected to a very high standard.

Some 2200 samples have been received to date for treatment by MSA Geoservices of Johannesburg a specialist laboratory in South Africa and indicator mineral visual results from an initial 100 samples were received by Everfor on 18th October. One possibly kimberlitic garnet, one possible chrome diopside and nine spinel grains have been recovered from five samples. Further visual results and microprobe analyses are awaited before any interpretation of the significance of this data can be made. However, the fact that kimberlite indicator minerals have been recovered at this early stage further reinforces, in Everfor’s opinion, the prospectivity of the area.

GEOPHYSICAL SURVEYING

Two of the licence areas in the south-east of the Kola Peninsula, Pulongskaya and Ermakovskaya, have produced high-interest kimberlite indicator minerals in previous sampling programmes and two diamondiferous kimberlites were discovered within Ermakovskaya. The terrain in each of these licences is geologically and geographically similar to that within the kimberlite-bearing Slave Craton in Canada, so a geophysical technique which was successful in locating kimberlites in that region was believed to be appropriate in this area. A contract was signed with Fugro Airborne Surveys Limited to carry out “RESOLVE,” an electromagnetic and magnetic helicopter-borne survey over core areas within these two licences. Flying began on October 12th in the Ermakovskaya licence. Since then, approximately 1300 line kilometres of an estimated total of 4000 line kilometres has been flown. By November 5th, it is likely that operations will require to be suspended until March 2005, because the effects of the approaching Polar night and climatic considerations preclude further surveying.

In the most northerly of the licences, Tulomo-Teriberskaya, a high-resolution (100m line spacing) aerial magnetic survey began on 10th August. Of the 2000km2 planned to be flown, all had been completed by 17th October. Final data will be received in approximately 10 weeks’ time, although preliminary data will be made available in twenty days’ time. After interpretation, geophysical targets will combined with sample results, as they become available, to provide well-delineated areas for further work in 2005.

For the next four to six months, attention will turn to the interpretation of geophysical results and to maintaining a steady output of laboratory results. Don Duncan, Everfor’s Chief Operating Officer, believes that the excellent progress achieved in the exploration programme will allow the company to select targets for more detailed exploration at an early stage.

OFEX LISTING
Everfor Diamonds PLC was admitted to the OFEX exchange on 15th October.
FOR FURTHER INFORMATION:
Stephen Dattels (Managing Director) / Donal Douglas (Investor Relation)
Everfor Diamonds plc
Phone +44 (20) 7514 0590
Fax +44 (20) 7514 0591
Email: info@everfor.com

Jonathan Willis-Richards
Loeb Aron & Company Ltd.
Phone +44 (20) 7628 1128

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.