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Re: Press Releases - Tuesday, July 10, 2007
Diamonds Recovered In Further Testing Of Salvador 1 Kimberlite
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Vancouver, B.C., July 10, 2007. Brazilian Diamonds Limited (BDY:
TSX/AIM), ("Brazilian Diamonds" or the "Company") 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 disaggregation 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 Ant�nio 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 Ant�nio 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

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Copyright (c) 2007 BRAZILIAN DIAMONDS LIMITED (BDY) All rights
reserved. For more information visit our website at
http://www.braziliandiamonds.com/ or send
mailto:info@braziliandiamonds.com
Message sent on Tue Jul 10, 2007 at 12:59:24 AM Pacific Time
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