Diamond Fields International Ltd. announced that it has been granted a marine exploration license for phosphate and associated minerals by the Government of the Republic of South Africa. The exploration license is valid for a period of five years in the first instance, and extends over an area of approximately 47,468 km(2) within the Outeniqua Basin in the South Western Cape. The license was awarded following an extensive environmental management plan compiled by the Council for Scientific and Industrial Research and public consultation with interested and affected parties.

Phosphate-rich rocks (av. 16.2% - 17.8% P(2) 0(5)) occur over extensive portions of the shelves off the west and south coasts of southern Africa. These occurrences have been studied in the past in detail through a joint research programme conducted by the Geological Survey of South Africa and the Marine Geoscience Unit at the University of Cape Town.

In the South Western Cape, phosphatic rocks form a near continuous outcrop which mantles the continental shelf between the 80 meter and 500 meter isobaths and covering an area of approximately 21,500 x 10(6) m(2). The deposit is located on international shipping lanes between the major markets of South America and Asia and benefits from excellent infrastructure. Diamond Fields intends to fast track the project through to the production of a high-quality rock phosphate product, subject to determination of a current resource estimate and economic feasibility.