RNS Number:5745U
African Diamonds PLC
23 January 2004



                                                                   AFRICAN 

                                                                   DIAMONDS plc

Contacts:

John Teeling, Chairman            Tel: +353 87 2581178

Jim Finn, Director                Tel: +353 86 2581178



Redleaf Communications

Nick Lambert                       Tel: +44 (0) 7811 358 764


                                                              www.afdiamonds.com

                                                               23rd January 2004









                        AGM STATEMENT AND TRADING UPDATE

The following highlights will be announced by the Chairman of African Diamonds
plc, John Teeling, at the company's Annual General Meeting, which is due to be
held at 12.30 pm today.



Production



  * African Diamonds will be producing gem quality diamonds within 8 weeks.



  * The 240 ton a day pilot mining plant on Pipe 3 in Koidu, Sierra Leone will
    be operational in March. Initially we will process 10,000 tons to establish
    the grades.



  * We have high hopes for this plant. The new DiamondWorks mine on Pipes 1
    and 2, three kilometres away, is reporting outstanding grades of 67 carats
    per hundred tons, as well as finding 25 plus carat stones. Koidu produces
    some of the highest quality diamonds in the world. Pipe 3 has every chance
    of becoming a high grade commercial mine.



  * At Kolo, in Lesotho, production will commence on our 55% owned joint
    venture, in the 2nd quarter of this year. Initially a total of 30,000 tons
    will be mined, from which we expect to recover 5,000 carats including some
    large stones. This too is expected to continue into full commercial
    production.



Drilling results



*         We are getting spectacular results from our kimberlite dyke mapping
and sampling programme in Sierra Leone. So far we have mapped 11.5 kilometres of
dykes averaging 1 metre wide. Early stage analysis suggests grades of 1 carat
per cubic metre. Our neighbour, Mano River Resources is finding similar results
on an adjacent licence. If confirmed we have the potential for a mine of high
quality.



*         In March we will report detailed results from our drilling programme
on 5 kimberlites on our Orapa Licence. We already reported the discovery of two
high quality diamonds from pipe BK10. More will emerge from the detailed
analysis. Expectations at this time are to move to trial mining on BK10.



The search for the lost Orapa alluvial diamonds continues. The 42 holes drilled
in Serowe Botswana are being analysed. We know that we have found river
channels. We are now looking for Orapa gravels and diamond indicators in the
channels. Follow up work will continue during the year to look for Plunge Pools,
which may hold large, gem quality stones. This project has the potential to be a
company maker.





An extensive sampling programme is underway on our three Guinea alluvial
licences. By midyear we will have a resource estimate on the Bomboko and Seria
licences. We have already recovered diamonds from this area.



Corporate



*         We are at an advanced stage in negotiating an exploration joint
venture on certain of our properties. I hope to make an announcement shortly.



*         We are also at an early stage in discussing possible joint activities
with a diamond-mining partner.



*         The funds we received last year will last until June. We have been
offered funding for our on going work but we are reluctant to issue shares at
present prices given the expected flow of good news.



Conclusion



  * We have had a very good first year as a listed company. It is difficult to
    rank the prospectivity and value of our various properties but the
    spectacular grades being obtained around us in Sierra Leone offer massive
    upside.



  * We are very well placed with an excellent portfolio and growing interest
    in our company.



  African Diamonds is a diamond exploration company traded on the AIM market.
                              Ticker symbol (AFD)








                      This information is provided by RNS
            The company news service from the London Stock Exchange
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